The project will use distributed intelligence technology to manage renewable energy generated by the community onto the power grid.
After completion, the project will increase generation capacity and reduce greenhouse gas emissions.
Municipal electric utility Toronto Hydro is working with Prolucid to develop a distributed approach for managing generation without the use of new power lines or capital equipment.
Prolucid said its software uses CompactRIO devices installed on the grid to control and monitor community generation sources.
In 2012, Toronto Hydro and Prolucid started a two-year demonstration period at Exhibition Place, a mixed-use district located in Toronto, Ontario.
Both the firms started testing with the CompactRIO intelligent grid devices, which will manage, monitor and control the Exhibition Place grid.
LocalGrid president and CEO Bob Leigh said the electrical grid will be transformed over the next 10 years, moving from a centralized model of power generation and distribution to a less capital-intensive local or MicroGrid model.
"This is driven in part by the introduction of distributed renewable sources of generation," Leigh added.
"Our technology allows renewables that are currently blocked to come online without costly infrastructure investment."
Canada’s ecoENERGY Innovation Initiative and Ontario’s Smart Grid Fund have provided about $2.5m funding for the project.
NI’s energy segment vice president Owen Golden said, "Toronto Hydro and Prolucid LocalGrid’s work will serve as a model for sustainable energy and smart grid technologies, showing other utilities an integrated and interactive approach to improving efficiency, reliability and responsiveness."
