Distributed Energy
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NEWS OFFICIAL JOURNAL OF THE AUSTRALIAN INSTITUTE OF ENERGY ENERGYwww.aie.org.au V O LUME 37 NO 4 – D Distributed Energy EC 2019 Microgrids, renewables, storage AEMO, EPWA, IMA, Western Power, Planet Ark PODCASTS McKinsey – How to unlock marketing-led politics and geopolitics, and how incumbents will have to growth: Data, creativity, and credibility navigate the new reality of climate change: tinyurl.com/ wcarhc8 McKinsey senior expert Biljana Cvetanovski and partner Jason Heller discuss the next chapter of marketing, which Oxford Institute for Energy Studies –The is focused on digital, and the role of the chief marketing limit of auctions in electricity systems officer (CMO) as the architect of a company’s growth engine: tinyurl.com/y3jjfh7p OIES senior research fellows Anupama Sen, Malcolm Keay and David Robinson discuss the role of central Energy Insiders – Ross Garnaut and why purchaser auctions for long-term commitments in Australia can be renewable superpower electricity systems and whether they are a useful market- based tool to complement other methods of resource RenewEconomy’s Giles Parkinson is joined by leading development: tinyurl.com/u2dxm6d economist and climate change policy expert Professor Ross Garnaut who explains how Australia can reach BloombergNEF Switched On – Solar 100% renewables in little more than a decade, and then thermal: all night long go further and become a renewable superpower: tinyurl. com/pvl9uwwr Jenny Chase, head of solar analysis for BloombergNEF, proposes how solar thermal for electricity generation can Grattan Institute – Avoiding another fit into the energy mix of the future. Solar thermal can Hazelwood: how to manage coal closures provide power when demand is most high, during the evening, making it valuable in certain locations as wind Guy Dundas, Grattan Institute Energy Fellow, Audrey and solar PV on the grid expands: tinyurl.com/ux7tlzd Zibelman, CEO, AEMO and Ross Edwards, Executive, Markets, EnergyAustralia outline the challenges facing The Energy Gang – Are ancient bugs the the NEM, and Victoria in particular, as it transitions away from coal towards renewables: tinyurl.com/vt6frbsu key to storing wind and solar? The Energy Transition Show – Will energy The US National Renewable Energy Laboratory (NREL) and SoCalGas are testing a new bioreactor transition be rapid or gradual? that could turn renewable electrons into renewable methane, allowing excess generation to be ‘stored’ in Kingsmill Bond, Energy Strategist for London-based clean existing natural gas pipelines. NREL’s Kevin Harrison energy think tank Carbon Tracker, ponders the impact and SoCalGas’ Ron Kent discuss how the system is of the energy transition on financial markets, domestic performing so far: tinyurl.com/un3kyzn ISSN 1445-2227 (International Standard Serial Number allocated by the National Library of Australia) ENERGY NEWS JOURNAL CORRESPONDENCE, ADVERTISING AND EDITORIAL Sally Bogle email: [email protected] Members (and non-members) may place advertisements in ENERGYNEWS on behalf of themselves or their organisations. Advertisements can include products, services, consulting, and positions vacant and required. Discounts are available for members and for all advertisements repeated in two or more issues. SUBSCRIPTION INFORMATION CONTENTS ENERGYNEWS is published by the Australian Institute of Energy and is provided to all members as part of the AIE PRESIDENT‘S MESSAGE 2 membership subscription. Non-members may obtain copies of this journal by contacting either the Secretariat or the AEMO: Editor. DER REGISTER AIDS CLEAN TECH 3 CONTRIBUTIONS WELCOME Articles on energy matters, letters to the editor, personal notes and photographs MICROGRIDS INFLUENCE PODCASTS of those involved in the energy sector are welcomed. ENERGY LANDSCAPE 4 PUBLISHED BY The Australian Institute of Energy BATTERY STORAGE DRIVING ABN 95 001 509 173 Registered Office & Postal Address MICROGRID UPTAKE 5 PO Box 576 Crows Nest NSW 1585 Telephone: +61 2 9431 8694 or WA FOCUSED ON HIGH-DER FUTURE 6 1800 629 945 email: [email protected] WESTERN POWER'S DER JOURNEY 8 Web Address www.aie.org.au Print Post Approved No. PLANET ARK: THE MULTI-WAY GRID 10 PP 100000796 DISCLAIMER STARLING ENERGY'S PLICO PROJECT 12 Although publication of articles submitted is at the sole and absolute discretion of the Australian Institute of Energy, statements made in this journal BZE: TECHNOLOGY AND ENERGY do not necessarily reflect the views of the TRANSITION 14 Institute. The editor reserves the right to amend and reduce the length of articles as DER INTEGRATION required and takes responsibility for any accidental errors. AROUND THE WORLD 15 Note: Unless otherwise stated, all currency denominations are in Australian dollars. AROUND THE BRANCHES 20 Front cover photo and above courtesy of Starling Energy's Plico project in Western Australia (p12). Photographer: Tim Campbell OUR VISION – LEADERSHIP IN ENERGY OUR MISSION – TO PROMOTE A BETTER UNDERSTANDING AND AWARENESS OF ENERGY ISSUES AS A CONTRIBUTION TO THE IMPROVED USE OF ENERGY TECHNOLOGY AND THE DEVELOPMENT OF RESPONSIBLE ENERGY POLICIES PRESIDENT'S MESSAGE Welcome to this quarter’s edition of ENERGYNEWS and its topic, distributed energy. “The trend to Distributed energy resources (DER) are playing an increased participation of increasingly important role in Australia’s energy system. DER is undeniable, unstoppable Across the country we have seen a dramatic uptake of and about to domestic solar PV and battery systems with associated accelerate” challenges around midday demand and grid security. The Energy Security Board’s post-2025 market design – Leigh Morpeth, is also underway, with proposed rule changes from the President, AIE Australian Energy Market Commission (AEMC) to allow two-way market design. This year has been a remarkable one for the AIE with The desire to have an economically-optimised, least-cost over 90 events held nationwide covering a wide range of energy system is laudable and has been the paradigm topics and speakers. I hope you have enjoyed these and for decades, but there are many challenges associated found value in your membership. Thank you especially with achieving it. The trend to increased participation of to those who have volunteered their time at Branch and DER is undeniable, unstoppable and about to accelerate Board levels to make such events possible. with the electrification of heat, processes and the mass With my two-year term coming to an end, this message adoption of EVs and their participation in the market. is my last as President of the Institute. It has been a joy The articles in this issue provide an insight into the range to serve you and an honour to lead the Board and the of DER-related initiatives underway across Australia – AIE over the period. This year I’ve been pleased to see from AEMO’s efforts to establish a DER register to the the AIE launch a new and fresh brand and to witness journey being undertaken by Western Power as it works the continuing journey towards a more digitalised to integrate high uptake of domestic solar PV into the organisation. The age and gender diversity of the AIE network. Board is also evolving with at least five female directors on the AIE Board from 2020 which bodes well for the The way in which technology is being deployed to aid future and culture of the Institute. the transition to a low carbon future is also discussed by guest authors from the International Microgrids I wish you all well and an enjoyable quarter ahead, Association, Plico Energy, Beyond Zero Emissions and Leigh Morpeth others. AIE National President AIE EnergyNews Journal themes for 2020 Issue Theme Copy deadline Published Q1 2020 Decarbonising Australia’s energy system 1-Feb-19 Mar-19 Q2 2020 Prosumers: the changing role of customers 1-May-19 Jun-19 Q3 2020 Financing the energy transition 1-Aug-19 Sep-19 Q4 2020 Climate risk and energy sector resilience 1-Nov-19 Dec-19 AIE members and non-members are invited to submit an article or recommend expert authors. Contact [email protected] in the first instance. 2 Energy News OUR VISION – AEMO’S DER REGISTER AIDS LEADERSHIP IN ENERGY INTEGRATION OF RENEWABLES, storAGE OUR MISSION – TO PROMOTE A BETTER UNDERSTANDING AND AWARENESS By the Australian Energy Market Operator (AEMO) OF ENERGY ISSUES AS A CONTRIBUTION TO THE IMPROVED USE OF ENERGY TECHNOLOGY AND THE DEVELOPMENT OF RESPONSIBLE ENERGY POLICIES To help streamline the integration of distributed energy resources (DER) into the National Electricity Market (NEM) and Western Australia’s electricity network, AEMO launched Australia’s first database of PRESIDENT'S MESSAGE distributed energy resources (DER) on 1 December 2019. Known as the DER Register, it is a foundational project consider and participate in new markets with their within AEMO’s DER program, which involves working DER; and with industry bodies to build a flexible, two-way energy • Allow networks to make better informed decisions system to exchange value from consumer-owned DER about network investment options in the future as devices, including a sophisticated electricity market to demand changes and DER increases. ‘buy and sell’ electricity and related energy services from Critical to this process are installers, who capture the consumers. data when the equipment is installed, either through It may come as a surprise to some, but Australia leads existing processes via the distribution service network the world in adopting DER, which presents exciting providers (DNSP) systems, mobile applications that opportunities, along with challenges to current-day installers already use, or straight into AEMO’s portal. operations of the electricity grid, which was originally Additionally, the DER Register system is designed to designed for one-way energy flow to the consumer. draw information from available data sets, such as the In general, DERs are defined as consumer-owned Clean Energy Council’s approved product databases, devices, such as rooftop photovoltaic (PV) solar systems to streamline data provision.