Legacy distribution systems are static in nature, allowing single directional flow from source to load. System safety typically consists of thermal fusing devices designed to detect overload, or high inrush currents caused by contact with grounded or opposing phases. In the future permitting increased Distributed Energy Resources (DER) such as rooftop solar, will create reverse flow during different times of the day. The conventional fusing methodologies will fail to operate as designed, load and supply become increasingly difficult to manage, and the distribution system become unstable. Distribution systems of the future will require two way flow regulation, islanding protection systems, automated switching and a management system capable of monitoring, analyzing, including some levels of autonomous control.

The supply mix in Ontario has made the electrical distribution industry very low in GHG emissions, thus from an environmental standpoint very attractive to electrification of the economy. If costs to supply and distribute electricity can remain competitive with the gas/oil industry, then there could be encouragement for consumers to switch from Natural Gas to Electricity for home/business heating and Electric Vehicles. For explanation, currently the average household connected to natural gas, from a distribution standpoint is calculated to be able to share a single transformer with up to ten homes (7.5kva/home on a 75kva transformer). Turning these homes to electric heat, hot water and an electric vehicle could easily double or triple the power required at any given time to each home, therefore requiring a larger distribution network, larger transformers or increasing the number of transformers, therefore increasing the cost to service a home. A viable alternative is to manage the loads used at any one time in a home by the distribution level, utilizing advanced Supervisory Control and Data
Acquisition systems (SCADA) and Demand Energy Response Management Systems (DERMS). These integrated systems would monitor from the ultimate source utilizing IESO peaking signals, to distribution stations loading, feeder loading, right down to the distribution transformer the customer is supplied from. This system can intelligently and autonomously dispatch load control on Hot Water Tanks (HWT), electric furnaces or heat pump stages, Electric Vehicle chargers, air conditioners, pool pumps and other large controllable loads, as well as discharge batteries to ensure the system operates in a safe reliable manner, reducing the need for new, costly infrastructure. Payback analysis is being discussed at the OEB and IESO and encouraged with groups like MaRS AEC. New structures where utilities will be able to keep part of the savings by will be required to be able to operate these systems on a go forward basis.