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Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks...

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•Generation by a range of public and private Cos. •Mix of generators and distributors •Grids - networks - the biggest costs "A flawed regulatory process forcing consumers to pay too much for electricity can and should be fixed. While the National Electricity Law is a complex challenge, our analysis finds that these flaws have unduly shifted the balance away from consumers and towards investors. They have led to avoidable costs to consumers of around $2.2 billion a year. These costs will only escalate if changes are not made." Energy Cost Background AEMO Report 2012
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Page 1: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

•Generation by a range of public and private Cos.•Mix of generators and distributors•Grids - networks - the biggest costs

"A flawed regulatory process forcing consumers to pay too much for electricity can and should be fixed. While the National Electricity Law is a complex challenge, our analysis finds that these flaws have unduly shifted the balance away from consumers and towards investors. They have led to avoidable costs to consumers of around $2.2 billion a year. These costs will only escalate if changes are not made."

Energy Cost Background AEMO Report 2012

Page 2: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

WASA

NTNSW

VICQld

Tas

COAG MCESCO

AEMCRules

AEMOOperations

AERRegula-

tions

Jurisdictional safety regula-

tions

Jurisdictional safety regula-

tions

Jurisdictional safety regula-

tions

Jurisdictional safety regula-

tions

Jurisdictional safety regula-

tions

Jurisdictional safety regula-

tions

Policy

LAW

Page 3: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

47,000 kilometres

• ElectraNet Pty Ltd (South Australia);

• Powerlink Queensland (Queensland);

• SP AusNet (Victoria);

• Transend (Aurora) Networks Pty Ltd (Tasmania);

• TransGrid (New South Wales);

• Western Power (Western Australia).

Taxpayers paid for it

$93m per annum

Page 4: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

Energy Suppliers AA says $25b needed for grids

Councils face escalating costs for street lighting - community halls – civic centres - libraries - that means more cost to you

Jul 2014

Over the past 5 years Power billswent from $970 to $1660 pa

Page 5: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

Tasmania second highest energy costs in AustraliaTasnetworks -Lance Balcombe wants to cut solar tariffs to en-sure:“all Tasmanians are enjoying the lowest electricity prices possi-ble.”

Grid costsWA $460 pa

Tas $1,100 pa

Jul 2014

Page 6: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

Carbon tax the cause ?

Page 7: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

The lucky country?

Page 8: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

German solar impact on energy cost €60/MWh

Page 9: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

€65/MWh around 9am (EPEX)Solar halved the price!

Page 10: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

What VH did via bulk purchase Initiated a PVP retrofit program Based on Prof. Blakers (ANU) modelPublic ConsultationBriefed adjacent councilsLet Expression of InterestLow interest loan$1995. for 1.5kWh installedCoordinated retrofitting on all housesProvide for ongoing program - $75 rego.Utility made $500k selling I/O meters

www.solarprogram.com.au

Page 11: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

Results– 09/10720 Fleurieu ratepayers invest $2,500 - $2.25m 1,000 more in adjacent councils$8m in Federal Government solar rebatesZEN installs $20,000 local office - 3 - now 4 jobs24 local electricians contracted for installs$80,000 in local newspaper advertising Ratepayer p/a power savings estimated at $250,000$87,000 raised via rego fees$30,000 ZEN/Adelaide Uni/Vic Harbor partnership for renewables research proof of concept (hybrid) ETSA got $500,000 for new metersC-PREP saves approx. 1,150 Tonnes of CO2 p/aLGA Copied the program across 18 more councils

Page 12: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

VH today - 10mW power on sunny day

Page 13: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

1 in 5 or2.4% of totaldemand in SAMelb Uni Rsch.

State Results

Page 14: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

DE affects nationally? Outstanding!!Electricity, gas and water cost per week, Nov 2012Adelaide $70.75Canberra $69.23Melbourne $67.38Hobart $62.02Sydney $58.18Darwin $57.41Brisbane $53.50Perth $52.62Source: SA Council for Social Service

Page 15: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

“You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.”

Page 16: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

Our future – the 3rd industrial revolution

1. The change from fossil fuels to renewables- irreversible

2. Every dwelling/shed/paddock becomes a mini power plant

3. Energy storage in areas, buildings and across infrastructure

4. Internet to create smart grids-intelligent utility networks

5. Transitioning the global transport fleet to electric/fuel cell plug-in

Page 17: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

1&2- Every dwelling/shed/house becomes a mini power plant

Page 18: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

3-Energy storage- batteries- "the killer app”

Almost entirely made out of plastics and with a footprint of 800mm x 400mm (and 800mm high), it weighs 220kg,a fraction of the mass of comparable lead-acid batteries. It is designed for day-in day-out deep cycling with threeto eight hour charge and discharge times and is the ideal building block for grid scale electricity storage systems.Delivers 10Kwh with a peak rating of 5kWh

Page 19: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

CSIRO- Intelligent (smart) Grid Report 15 Mar 2010

• Wide scale deployment DE - $130b – 2050

• PVPs dominate DE growth from 2015

• Critical role in Australia’s future

4-

Advanced Battery Management System• Real-time battery module measurement and report: voltage, current, temperature, Cell Capacity, SOC, Efficiency and SOH• Active balancing that keeps cells balanced at all times• Battery module protections against under/over-voltage, temperature and over current• In-field configurations:DOD,voltage protection ranges, power ramp rates and charge rates• Dynamic,real-time power control. Switch between charge and discharge in less than 2 seconds• Ethernet, serial and Web-based communication and control• Peer-to-peer networking across multiple units to form larger, virtual unit• Support drop-in custom modules • Smart Grid ready• Battery Operating System III (2014)

Page 20: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

5. Transitioning the global transport fleet to electric/fuel cell plug-in

Page 21: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

How Ungerman Bass sees it.

Page 22: Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing.

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