NEWS Official Journal of the Australian institute of Energy

ENERGYwww.aie.org.au V o lume 37 No 4 – D EC 2019

Distributed Energy

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. Installers or electrical and battery storage, which as individual units can contractors will be mostly asked to confirm information, generate or store electricity or have the ‘smarts’ to rather than enter it. actively manage energy demand. Importantly, the DER Register activation does not change The DER Register only applies to generation that receives the grid connection approval processes. All parties must an agreement for a connection from the local network, continue to make contact with their local network service which will also provide advice on whether and how the provider for a connection approval and instructions on data needs to be provided. how to provide any data for the DER Register. When aggregated and operating together at scale AEMO has developed a range of communications through micro-grids and virtual power plants, these materials, including a fact sheet, FAQs and other devices have huge potential to exchange consumer value resources, to introduce the DER Register and provide an by contributing to a reliable and secure energy supply. overview of the changes, information which is available on AEMO’s website. Following the Australian Energy Market Commission’s (AEMC) amendment of the National Electricity Rules The new system and approach represent a change to the in late 2018 to establish a DER Register, AEMO has way small-scale solar, batteries and other forms of DER worked with stakeholders across the electricity sector to are deployed in Australia, but the benefits are set to be design the register, agree on the data and how it will be large for all Australians. collected. This article was originally published by AEMO on 11 From 1 December 2019, network service providers (NSPs) September 2019: tinyurl.com/rabeock must provide mandated information on every small generating or battery system within 20 days of system commissioning or activation, which will feed into AEMO's DER Register. The register, with comprehensive DER data, will enable AEMO and networks to: • Forecast, plan and operate the grid more efficiently, ensuring the system and market can deliver energy at an efficient price for all customers; • Be more prepared for major disruptions to the system, with a greater understanding of how DER assets will behave during these events; • Prepare the grid for major innovations with DER such Photo credit: Plico Energy as virtual power plants, and enable customers to

Energy News 3 Microgrids influence WIDER energy landscape By Terry Mohn, Chairman, International Microgrid Association

As Australia’s microgrid industry grows, the need for the University of Western Australia, Woodside, ATCO Gas an industry voice becomes important. The Perth- and Horizon Power. All IMA members are committed based International Microgrid Association (IMA) to leading change and rapidly progressing the global was formed in 2019 to provide that voice. It aims to microgrid sector. identify operational, technical and market issues, The IMA focuses on three main microgrid industry educate stakeholders, and foster the development structures: policy/regulatory models, standards and and adoption of microgrid solutions, to enable a technology, and business models. The Association transformed electric power system. aims to evaluate existing global ideas in each area, Within the energy industry, we are witnessing increasing recommending which to adopt for industry growth, penetration of distributed generation resources, such which to improve, and identify potential gaps. as solar PV, energy storage, and microgrids – which are The IMA strategically defines and communicates use- small-scale versions of a centralised electric grid. case specific blueprints that will build and broaden the Microgrids can generate, distribute, and manage power global microgrid market opportunity and articulate and energy locally within a customer or a region’s sound industry investments. Business opportunity areas defined area – with or without the utility connection. that will be pursued include industrial (ports, campuses, When properly designed, built, optimized, and operated, municipalities) and rural (islands, developing countries, Battery storage drives microgrids can achieve important goals for their owners, energy poverty). including economic power, reliable energy, resilience The IMA provides a platform where both local and uptake of microgrids in Australia energy, and minimized environmental impact. international members, which represent a broad range Microgrids are developed by property owners and of interests in the microgrid value chain, can meet, investors who wish to achieve levels of improved exchange ideas and work cooperatively on a common energy performance. Microgrids range in size from set of issues with the goal of moving microgrids towards single buildings to large seaports and communities. In the digital, decarbonized, decentralized energy future. An developing countries, they can be designed for villages inherent outcome is economic growth for members and and urban areas which are not covered by a local utility. the region in which they work. All microgrid installations are intended to be self- By becoming the voice of the microgrid industry, the IMA sufficient and to operate independently from the aims to investigate and promote operational, technical larger grid. In many cases, the electric grid can remain and market issues, and to educate stakeholders and connected, if it’s available, and the microgrid can even be foster the development and adoption of microgrid designed to export services back into the grid. solutions for a transforming electric power system. Microgrid technology has evolved over the past decade The Association can illustrate reliability, resilience, and now incorporates low-cost generation – such security and interoperability that electric systems can as solar, batteries, wind and thermal – as well as derive by supporting investment and acceleration of sophisticated control and communication systems that innovative, cost effective microgrid technologies and balance the flow of energy between all of its parts. capabilities across the world. In the case of residential subdivision microgrids, much The value for IMA members includes: of the electric generation is supplied by solar rooftops. • Enabling cross-sector collaboration that will build a The challenge is to balance energy flow across the entire team with capabilities to accelerate microgrid market system to maintain reliability, efficiency and reduce awareness and speed to market; carbon emissions. • Amalgamation of issues (policy, economics, engineering) to communicate a consistent message Aims of the IMA about the value of microgrids to stakeholders; and • Integration of local businesses into domestic and The IMA focuses on the contribution microgrids can global supply chains thus developing a broader make to emerging solutions in key energy sector areas – workforce capability and export potential in energy energy cost, energy availability and the seamless ability related fields. to incorporate renewable technologies into the power The IMA is committed to driving economic growth by portfolio. fostering cross-sector collaboration across the global The Association is a growing coalition of members microgrid value chain, enabling a transformed electric involved in the global microgrid value chain and include power system and unlocking the future potential of such organisations as Cisco, Schneider Electric, Telstra, microgrids.

4 Energy News Educating industry on the benefits of • Environmental Impact: Many utilities do not share microgrids the users’ standards for levels of carbon emissions. Microgrids influence WIDER Microgrids can supply many types of renewable A number of benefits arise from localizing the energy, including those supplied by customer energy landscape management and control of energy resources, primarily rooftops. in the form of microgrids, including: The IMA will be providing public educational content By Terry Mohn, Chairman, International Microgrid Association • Economics: As electric prices – both energy and on solutions that can be applied across all regions demand – have either become unpredictable or are and circumstances. It intends to work directly with escalating too high, microgrids provide balanced government agencies and multi-lateral banks to ensure a control of energy production and demand leading to stable, sustainable energy future for all. lower pricing; The IMA’s chairman Terry Mohn is a well-known smart grid and microgrid industry expert with over 20 years of • Energy users require higher energy Reliability: experience in the energy industry. availability than can be provided by traditional He is Federal Advisor to the Department of Commerce’s sources. Microgrids can supply much more stable NIST agency, was previously General Manager, Advanced voltage and frequency using advanced control Microgrid Developments at Horizon Power, CEO of General systems; Microgrids, Vice President of Innovation for BAE Systems • Resiliency: Energy users have suffered, or cannot energy business and Chief Technology Strategist for the Sempra Energy utilities. afford, too much storm damage or other frequent outages with longer-than-acceptable restoration Terry served two terms as Vice Chairman of the GridWise Alliance, has served as Chairman of the United Nations times. Microgrids, supplying energy production Foundation Microgrid Work Group, and was appointed closer to the loads, minimizes the effects caused by by the US Department of Energy to advance microgrids in inclement weather or fires; and developing countries. Battery storage drives uptake of microgrids in Australia By Mary Hendriks, Industry Executive, Australian Energy Storage Alliance and AIE Sydney committee member

Microgrids are becoming an increasingly With support from ARENA, a Western Australian gold important part of our energy mix, both locally and mine is now powered by the Agnew Renewable wind, globally, driven by the significant reduction in the solar, battery and gas microgrid. This project consists of cost of Battery Energy Storage Systems (BESS). an 18 MW wind farm, a 4 MW solar farm and a 13 MW/4 Microgrids using renewable generation as their MWh BESS. Security and reliability of the microgrid is main energy source, combined with BESS, have underpinned by a 16 MW gas engine power station. become cost-effective solutions for providing local electricity at a variety of sites while reducing Connected microgrids carbon emissions. This article reviews some of the recent initiatives in Australia. It does not cover the These normally remain attached to a main grid; although growing area of Stand-Alone Power Systems (SAPS) in some cases, they may have the ability to disconnect which mostly provide power to single premises. due to a natural disaster such as fire or flood or due to outages on the line. The town of Kalbarri in Western There are three main types of microgrids, each using Australia is connected via a 140-km-long rural feeder line distributed energy resources (DERs) and involving local generation from sources such as wind, solar, diesel, gas from Geraldton, and when there are outages, the local or hydrogen. These three main types of microgrids are tourist industry is impacted. known as autonomous microgrids, connected microgrids The Kalbarri microgrid is being developed by Western and embedded networks. Power and will draw energy from a wind farm, feed-in from residential rooftop solar panels and use a 4.5 MWh Autonomous microgrids battery to achieve “a small-scale power grid which will also be connected to the main electricity network”. These are systems that are not grid connected, have one or more sources of local generation, and may service In New South Wales, Enova Energy is the leading multiple premises or facilities, such as a remote town or partner in a microgrid pilot project being undertaken mining site. For example, at the Heron Island research at Byron Bay Arts and Industry Estate involving 20-30 station, the recently-completed University of Queensland local participants. The project will use locally-generated, microgrid project incorporates 344kW of solar PV stored and distributed power, and aims to demonstrate combined with 150kW/600kWh of vanadium redox flow a model that could be replicated in similar commercial or batteries. industrial estates.

Energy News 5 With support from Mondo and the Victorian government, become more distributed and use higher percentages of the Euroa Environment Group is building the Euroa renewable energy. With smart management systems and Microgrid Demonstration project expected to be installed decreasing cost of BESS, microgrids will provide lower by March 2020. This project encompasses rooftop solar electricity costs for remote or island sites. PV and battery systems as well as smart metering and Other benefits – such as the ability to isolate a energy management technology, to enable the town of Euroa to reduce reliance on energy from the main grid community or complex of buildings while maintaining while ultimately providing cost savings for residents. power during times of blackout or natural disaster – will be of growing importance for local resilience in a future Embedded networks with more natural disasters such as fires and floods. Australian businesses, such as Planet Ark Power, are These are usually privately-owned grids, located behind being recognised for their innovative grid-transforming a single connection point, and are often situated in solutions in providing ‘microgrids as a service’. As an urban location. An embedded network may suit a these distributed energy microgrid systems evolve, commercial complex such as a university, hospital or retail centre. technologies and energy management systems developed in Australia could be exported to support Monash University’s Clayton Campus is well on the way global initiatives. to developing an on-site embedded microgrid as part of its ‘Net Zero Initiative’, with the recent commissioning of Microgrids with BESS will be part of the global energy 900 kWh of vanadium redox flow machines coupled with solutions, helping integrate more renewable energy a 120 kW C1-rated lithium battery, located on the roof into grids, reducing use of diesel in island and remote of Monash University’s new Biomedical Learning and communities, and providing access to modern electricity Teaching building. services in areas such as in Sub-Saharan Africa. The Monash microgrid is planned to be versatile enough Australia already has a reputation as an energy exporter. to receive and store energy from various renewable Exporting locally-developed solutions to implement energy sources. It is expected that the “microgrid will also microgrids with BESS will be a large step towards a future help stabilise the wider grid, making it more resilient”. where Australia is a major exporter of clean energy Roles of microgrids services. Author’s note: The information in this article is mostly In both regional and urban areas, microgrids are likely to derived from publicly-available information and is not to be become a major tool for enabling our energy systems to relied upon for any investment or business decision.

Western Australia, paving the way to a high DER future By Energy Policy WA, Government of Western Australia

Over the past decade, Western Australia has experienced a greater levels of two-way power remarkable uptake of Distributed Energy Resources (DER). Increases flows, increased thermal plant in electricity prices, government incentives and decreasing movement, and a greater number technology costs have led to almost one in three households owning of interventions by the Australian a rooftop solar system. Energy Market Operator (AEMO), the system operator in the SWIS. With over 1,100 MW installed, The challenge rooftop solar PV represents the At the network level, Western Power (the network operator of the SWIS) largest energy source in WA's South DER offer great opportunities for is having to deal with voltage and West Interconnected System (SWIS) – low-cost, low-emissions energy for frequency levels outside technical the main power system in the State – consumers. limits, with reverse power flows with peak demand of approximately However, the intermittent and putting pressure on equipment. 4,000 MW and average demand of uncontrolled nature of these about 2,000 MW. The sustained uptake of rooftop technologies is presenting challenges solar systems is underpinning The pre-eminence of rooftop solar is to maintaining the security, reliability record-low spring daytime demand. set to continue, with approximately and affordability of electricity supply. On 29 September 2019, minimum 2,000 households installing solar At the power system level, the SWIS demand reached 1,176 MW, systems each month. is experiencing increased variability, which was the Western Australian

6 Energy News Wholesale Electricity Market’s lowest Q3 minimum demand on record and only 3 MW higher than the all-time minimum. On this day, rooftop solar systems were estimated to generate around 971 MW, which met 45% of underlying demand (demand supplied by the grid together with demand met by rooftop solar systems). October 2019 saw periods when up to 85 MW was exported from the distribution to the transmission network. Prices in the Wholesale Electricity Market also hit the floor price of -$1,000 for the first time. Without changes to better manage the output of distributed renewable Photo credit: Western Power generation, voltage and frequency levels in the SWIS will not be able to be controlled within technical limits. and a program of work to integrate technology integration, DER drivers, As the level of demand approaches DER into the power system, including DER participation and protecting the critical level of 700 MW, thermal a DER Roadmap, a register, and customers. It will identify policy generators are not able to be revised connection and performance elements, work packages and actions dispatched to provide essential standards. under each of these themes. system services (traditionally The publication of the Roadmap referred to as ancillary services) to DER Roadmap, register and maintain power system security. standards in early 2020 will represent both the first major milestone by the This could result in major supply Instead of inhibiting the connection Energy Transformation Taskforce, disruptions in the SWIS as early as of DER to manage their detrimental and the commencement of the 2022, as forecast by AEMO in its effects on the power system, the implementation of the work March 2019 report Integrating Utility- Roadmap will guide changes to scale Renewables and Distributed packages identified in the Roadmap. policies, regulations, technical Energy Resources in the SWIS. The DER register will enable more requirements and consumer protections to support the efficient network investments, Western Australian better network and system planning, Government’s response integration of DER over the short, medium and longer term. While improved management of the power this project is largely focused on the system, and better ability for the Announced in March 2019, the SWIS, it is also considering issues system to respond to emergencies Energy Transformation Strategy relevant to the integration of DER and contingency events by providing (Strategy) is the Western Australian in regional and remote parts of the Western Power and AEMO with Government’s response to these State. challenges. The objective of the greater visibility of the location of strategy is to maintain the security, The Energy Transformation DER. reliability, sustainability and Taskforce – responsible for leading Reviewed connection and affordability of electricity supply the delivery of the Strategy – has performance standards will specify in the SWIS, while allowing new developed a vision for DER by the required level of functionality technology to connect and giving 2025 which is “a future where DER is of DER to safeguard the electricity consumers more control over their integral to a safe, reliable and efficient system, while ensuring the benefits electricity use. electricity system, and where the full of DER for customers and the power capabilities of DER can provide benefits The Strategy comprises a two-year system can be unlocked. program of work across three and value to all customers”. interrelated work streams – the Developed in close consultation The DER register and the connection development of a Whole of System with energy sector stakeholders, and performance standards are Plan for the SWIS; the modernisation the Roadmap will present the scheduled to go live in August 2020, of the regulatory frameworks set of actions, action owners and building on recent improvements governing access to the Western timeframes required to realise to inverter requirements for new Power network and the operation this vision. The Roadmap will be installations implemented by of the Wholesale Electricity Market; structured around four themes – Western Power in August 2019.

Energy News 7 Western Power’s PowerBank Western Power’s DER journey to a cleaner and more reliable energy future By Nathan Kirby, Distribution Grid Strategy Manager, Western Power

In Western Australia’s south-west region, our grid connects more As a result, our network – which was than two million customers over an area larger than the United previously designed for one-way Kingdom. With the development and uptake of new technologies, flow from the grid to the customer – there is no doubt that the grid needs to be more flexible to adapt to must now facilitate two-way power the challenges associated with them. flows at different times on the same day. Additionally, at a transmission Our customers want reliable, cleaner Where our network of traditional level we have seen a decrease in and cost-effective energy resulting poles, wires and substations once synchronous generation and an delivered energy generated on the in Western Power embarking on increase in renewable generation. an exciting journey towards a high transmission network to supply most distributed energy resources (DER) of our customers on the distribution In response to these changes, we are delving deeper into how the future. network, we are now experiencing an increase in energy generation grid needs to respond to changing The South West Integrated System from other sources such as solar customer behaviour and usage. (SWIS) is one of the world’s largest and wind power on the distribution We are investing time and resources stand-alone grids. network. into looking at our major customer It spans around 255,000 square Our customers have installed around segments – residential, small to kilometres and stretches from 270,000 rooftop solar photovoltaic medium businesses, industry and Kalbarri in the north to Bremer Bay (PV) systems that are feeding local government authorities – to on the south coast and to Kalgoorlie significant amounts of energy back understand what their energy needs in the east of the State. into the grid. are now and will be in the future.

8 Energy News Using this information, we have as a result of reverse power flows DERs on the grid while ensuring that developed a Distributed Energy that occur during peak solar output we are providing energy solutions Resources (DER) Management Strategy are mitigated by charging the battery that meet network, customer and to address these challenges through in the middle of the day. energy market needs. a three-pronged approach of set The results suggest that PowerBanks Currently, we’re trialling these and forget, storage and real-time are a proven scalable product for solutions in isolation to see how intervention solutions. managing the network challenges of they perform – but we are working Set and forget deferring costly network investment towards bringing these solutions and managing voltage flows. We are together, to further test them and see if we can deliver better service to Set and forget is about leveraging currently in the process of planning our customers. our more conventional grid-side for PowerBank Stage Two. responses to manage the quality of Our second trial is in the northern Complimenting our DER supply on the network. town of Perenjori. This trial aims Management Strategy, Western Power is currently working with An example of our new set and to improve electricity supply and the Energy Transformation forget technology solutions is reliability through a Battery Energy Implementation Unit, part of the a current trial using on-load Storage System (BESS) which forms State Government-operated Energy tap changers on distribution an intentional island to ensure Policy WA, and AEMO to develop a transformers. This is a technology supply continuity when the grid DER Roadmap for Western Australia. that we have employed successfully supply is lost. Since installation in This seeks to identify the policy, for many decades at higher levels of July 2018, it has saved more than 16 regulatory, customer and technical the system but, through advances hours of customer outages. requirements to support high in technology, we are now able to levels of DER on the SWIS whilst deploy this deeper in the network. It Real-time intervention ensuring safe, secure and affordable has been designed to automatically solutions electricity supply in the short, manage voltage fluctuations at street medium and long term. level (low voltage), giving us another While set and forget and storage lever to manage the network. solutions address grid-side issues, The transformation of our grid real time solutions will allow the has involved extensive planning, An on-load tap changer helps a visibility and management of including energy forecast and transformer alter its electrical customer inverters. Real time investment comparisons of solution output to serve an ideal set point intervention will enable Western options. Different approaches to for customers, depending on the Power to begin harnessing the long-term planning, the use of new Western Power’s DER journey conditions at any time in the day. technical capabilities of the large technologies and the expertise, It can automatically regulate the number of DERs on the system. knowledge and commitment of our to a cleaner and more reliable supply voltage at the peak output of employees continues to be critical in solar panels in the middle of the day In April 2019, we sought expressions ensuring we continue to seamlessly energy future and at peak supply times, typically in of interest to understand the the early evening. products in the market that can connect homes, businesses and By Nathan Kirby, Distribution Grid Strategy Manager, Western Power help manage distributed energy essential community infrastructure Storage resources, with the hope of to an increasingly dynamic energy undertaking a trial soon. The trial mix. Storage solutions have the potential will explore how we can support and Note: All photos are attributed to to provide benefits from both a manage an increased number of Western Power. customer and network perspective. Western Power is currently participating in trials to demonstrate these benefits. Our joint PowerBank trial with Synergy in the Perth suburb of Meadow Springs has connected a battery of 106 kilowatts providing 49 households access to centralised virtual storage of 420 kilowatt hours. The virtual storage is accessed by customers for a cost of $1 per day. The project also seeks to defer costs associated with network reinforcement. Discharging the battery at peak times offsets the energy that would have been required from the grid. In addition to this, the battery helps to regulate voltages, meaning that over voltages

Energy News 9 The multi-way grid: how do we make it happen? By Shaun Scallan, Institutional Program Manager, Planet Ark Power and AIE Melbourne committee member

Energy is the currency of life. In a highly automated world, what is it designed for a time and generation/ that we need more of? Robots don’t run on natural gas, they run on transmission and distribution electricity. Gas has its place in the energy mix as it is a very useful architecture that is no longer fit for energy vector, but let’s put that to one side for the moment. purpose.

Countries that have the lowest of new technology disrupting the To REZ or not to REZ cost of energy will make products energy provisioning model based on cheaper in an automated world. The monolithic generation and significant Renewable Energy Zones (REZs) are a mission must, therefore, be to have transmission investment? I would great concept but have been created the lowest energy cost globally to contend it is both. based on energy establishment allow any country to compete on the I would also say that new technology thinking. Lots of lumpy generation world stage. disruption has been an initiator somewhere far away, this suits the Bloomberg New Energy Finance of change and breaks the current current business models of many of (BNEF) has estimated that by 2035, business energy provision models, the players in the energy industrial the energy capacity expected to yet incumbents compound the complex. sit behind the meter rather than pain by not responding to this Regulated monopolies with on the transmission network in significant opportunity. The ability guaranteed returns that essentially Australia is 33%. Is this a sign of of incumbents to respond is get paid for by the energy users a market failure? Or is this a tale impacted by a regulatory framework around Australia.

10 Energy News It was great to see the Australian for the Clean Energy Finance Locating solar locally alone is not the Energy Market Commission’s (AEMC) Corporation and the Property answer. Discussion Paper Coordination Council of Australia in June this year Rooftop solar is invisible to the grid of Generation and Transmission found that there is enough roof operator and represents a 7 GW Infrastructure (COGATI) Proposed space to power Australia. uncontrolled generator according Access Model, released on the 14 The report is quick to note that it to the Clean Energy Council. This 1 October 2019 which notes that: does not advocate this, but makes makes it difficult to manage the “Generation roughly equal to the the point we have only scratched supply-demand balance and leads current size of the National Electricity the surface of generation from to the notorious duck curve driving Market (50 GW) is foreshadowed for rooftop solar. That is rooftop solar energy prices into low and negative connection to the grid over the next in the broadest sense, not just on territory. A bit of a pain if you are 10 years. The NEM will replace most of households but on the vast acres trying to make money from selling its current generation stock by 2040. of commercial and industrial (C&I) energy. Unlike the existing power system, the Australian – and global – roof spaces. First, the one way grid. Our grid is system of the future is likely to be Couple this with the fact that the not set up to handle large amounts characterised by a large number of most efficient place for generation of reverse energy flow. By reverse relatively small and geographically is close to load and the following I mean away from households and dispersed generators.” revelation in the form of AEMO business, not back to the generator, 4 The accompanying Discussion Paper observations in a submission to but out onto the low voltage on Renewable Energy Zones (REZ)2 the AEMC on the 30 April 2019: “The distribution network. proposes two types of REZs: Type NEM is now faced with a situation Visibility of distributed energy A and B. Type A are not paid for by where generation can be built much resources (DER) is a good first step, consumers via Transmission Use of more quickly than the transmission it the next required step is to be able Services (TUOS) charges for existing requires to gain access to market.” to coordinate ALL the generation transmission and Type B are paid We may not be able to put wind resources in an organised way to for via TUOS charges. The current locally but we can sure put solar ensure system reliability and stability transmission based model is the only locally and at scale, and quickly. at lowest cost. option covered. Transmission problem avoided. The low cost of solar means that the “A large number of relatively small and Perfect storm or cost curtailment to solar projects geographically dispersed generators” opportunity? is not such an issue, oversizing is a says to me that distribution network- valid means to deliver more energy located generation assets will be a later in the day to line up better with As mentioned previously, solar is significant part of the new energy evening peaks. among the cheapest levelized cost generation/provision mix, as per of energy (LCOE) and only getting Better still, oversize and use BNEF’s prediction earlier. cheaper. Roof spaces are under- energy storage not just lithium- utilised. Generation is best next to based chemistries et al but also Renewables: simpler other storage in the form of heat energy, no fuel cost load. Consumers are voting with their wallets to take control of their and coolth (yes that is a word energy future because of market apparently). There are a number of Solar and wind are the cheapest failure. This looks like the makings options to manage demand more form of generation by far. No of the perfect storm, one that will effectively from behind the meter. ongoing costs such as fuel, no disrupt the status quo in ways we extractive mining, fuel processing, are starting to see and others yet to Microgrids: problem water usage, air, land and water be perceived. decomposition pollution from these activities. Add to this the ability to connect to Enter the microgrid, for the purposes Ongoing is the key word here as anything and everything through impact is the area under the curve of this discussion let’s say the target the drive to automation, the internet is C&I buildings that have large roof of these activities. They just keep of things (IOT) and new business on giving, and not in a good way. space and varying loads, many only models that unlock value for more during the day, a match for the Contrast this to initial inputs of than just the big players. energy and resources to create generation profile. Of course the their fuel free successors. One-off This drives the democratisation of local distribution network does not investment and did I mention no fuel services as we can move provision have unlimited capacity to distribute of new services into software and the surplus energy but does have costs? break the shackles of the hardware- some. Beefing up the distribution Available resource limited paradigm. Wiring in software network may also be an option. is far easier and flexible than wiring The solar/storage-based microgrid Let’s look at the available resource hardware up in the physical domain. can not only deliver energy to the for a moment. Recent work3 The present and future is virtual. site customer load, but to adjacent undertaken by the Australian But how is this going to work? We businesses – if we had peer-to-peer PV Institute and the Institute of have a widely acknowledged one- (P2P) regulations that supported Sustainable Futures and prepared way grid and a one-sided market. this. With appropriately planned

Energy News 11 and distributed microgrids we can Barriers and opportunities risk from a technology perspective, decompose the supply/demand and would not be out of place in solution into smaller ‘energy cells’ There are a number of regulatory superannuation portfolios of the which could be grouped around barriers in place which impact near future. distribution infrastructure like zone key elements such as P2P energy The multi-way grid will be created substations, for example. sharing, virtual net metering (VNM), A microgrid can provide direct value dynamic connection agreements, full by a number of key building blocks, to the hosting site in the form of access to demand response for all distributed energy generating load management, peak or time, as consumers, and value recognition microgrids are a central element, required. for new grid services, such as fast visibility and coordination of In addition, a microgrid can provide frequency response to name a few. these assets and demand side other valuable grid services as Many parties and much good work participation in the fullest sense part of a so-called value stack e.g. is going on across the industry starts to create a picture of the grid frequency (really fast too, with fair but DERs are proliferating and the of the future. Lots of challenges and recognition for the value given) and problem to be solved is to ensure opportunities beckon, bring them voltage services, demand response the available technology is not held on. (in soon-to-be a third flavour) and back. network deferment. References Contrast this approach to the A way forward monolithic remote generation 1. bit.ly/2srt56 and transmission model we have Clearly the way forward is to replicated in the form of REZs. This introduce more visibility and 2. bit.ly/2pGnBMY seems to be a case of established control at the local distribution 3. bit.ly/2wsedt mental models prolonging a way grid level. Microgrids are a key 4. bit.ly/2NTHUyT of energy delivery that serves the element of the future grid and we incumbents. Not unexpected and must learn by doing. Microgrids For more information on Planet Ark this should surprise no-one. can be long-lived assets, are low Power's eleXsys™: tinyurl.com/s5kcmal The Plico Energy project: a new business model for DER By Brian Innes, Managing Director & Founder, Starling Energy and Plico Energy

Backed by $50 million in equity funding, Plico • Helps households that use more than 15 kwh/day to Energy recently announced the first stage of our save money on energy bills immediately and halve plan to develop a community-owned distributed their total energy spend over 20 years, allowing them energy resources (DER) company, which everyone to reduce household carbon emissions by up to 90%; can join. • Allows our community to own part of an ever-growing The Plico Energy project utilises an innovative business battery driven VPP that will support and stabilise model that allows households to collectively own an our future grid and put back into their communities energy company comprising of thousands of DER assets. through local projects. Each member that joins up receives DER assets (VPP The advantages over the status quo options include: controllable solar and battery systems) that operate under an Energy as a Service (EaaS) model and allows • A unique contract structure developed with them to create and consume their own energy. considerable focus on ethics and reasonableness for all parties as fundamentally the contract is with a As owners of an energy company that owns the company that they collectively own; equipment, customers also get to participate in the DER- driven future of our grid as their energy company will • Fully serviced and maintained equipment for the negotiate to make income from their cloud-controlled duration of the 10 year contract and beyond; virtual power plant (VPP). • Opportunity to become an ‘owner’ of the business at the end of 10 years or exit and own the assets; The project is about putting power back into the hands of everyday Australians and enabling them to create a • Be part of an energy company that is on the side of better future by delivering a product and service that: the consumer and will advocate and act on behalf of • Provides an affordable battery and PV system with the members in negotiations and discussions with minimal upfront capital costs ($292), fully serviced government agencies and industry bodies; and and maintained for 10+ years through a weekly • Membership of a community movement focused on a payment of $36.50; clear goal: to make energy green again.

12 Energy News The Plico Energy story How it helps our grids

The Plico Energy project was developed by Western By harnessing the energy of the sun with the assistance Australian-owned Starling Energy Group and Susi of cutting-edge battery inverter technology, households Partners, a Swiss fund manager specialising in will make – and consume – up to 90% of their own sustainable energy investments. Plico Energy began as renewable energy. a small community initiative in Dunsborough, quickly The Plico Energy project will ensure that everyone grew into a much bigger concept and is now spreading can join and be part of our DER energy future. Our throughout WA. grids must be able to embrace a high percentage of Starling Energy has been appointed SUSI Partners’ renewables in order to reduce the risk of catastrophic preferred global partner for VPP projects and the climate change. The current unmanaged investment in investment structure developed is expected to be rooftop solar will ultimately hit a saturation point that replicated in new markets with the initial $50 million limits the ability of the grid to accept unmanaged solar being seen as a pilot project for this partnership. With inverters above 30%. the backing of SUSI Partners infrastructure funding, The technology for the project was consciously chosen Plico Energy can grow as fast as people join up, enabling to use only DC-linked architectures that can reduce the communities to take control and drive the energy grid impact of clouds on the grid, with the battery acting revolution that transforms our grids, ultimately owning as a directly-connected buffer for any fluctuating solar and controlling assets that will be worth tens of billions output. of dollars. Energy grids are dynamic systems that need to be stable The business model has been intensively stress tested and respond to changes in demand and generation. through a rigorous due diligence process which looked Imagine our traditional grid is designed like an old-style at commercial structures, technology and contracts. This mattress – consisting of just a few large springs – and development process took two years and a significant each movement is felt by the other person in the bed. upfront financial investment. The business model was created to allow infrastructure equity funds to be able The rapid increase in battery uptake that is possible to co-invest in household assets, without the need for through the Plico Energy model and our ability to government assistance or banks, and it is a business operate and dispatch them through a managed model that is not only sustainable but fully scalable. framework means we will have hundreds of thousands of springs to balance the loads and keep the grid under A core element is the fact that households are essentially control, much more like a modern mattress that is built contracting with a de-risked equity-funded business to avoid the movements of others in the bed. they will ultimately own themselves via the DCEP Inc Association. This allows us to keep the cost of capital down, whilst the scale of the project allows us to The future of Plico negotiate to keep capital costs low and incorporate 10 years of service and maintenance fees for the VPP. We believe our project provides both environmental and social benefits and has been explicitly designed with At the end of the 10 year contract, members become this intention in mind. Plico Energy members enter a shareholders in the entity that owns the combined 10-year, fully serviced and maintained contract involving assets – known as CEPCO 2019 – with the expectation of the installation of PV and battery system to their house significantly-reduced payments and VPP income streams. for just $36.50 per week. They have access to data and The Plico Energy project is building a business that owns information that will allow them to become educated millions of dollars of assets and establishes a new voice energy users. for households in our future grid. Starling Energy acts Our members consistently achieve up to 90% of their as the agent and/or buyers’ advocate representing Plico own energy creation, significantly reducing their own Energy households to help them get more from their carbon emissions. Collectively, this will help decarbonise assets. the energy mix in WA and reshape the existing grid into Starling’s role is to negotiate and lobby on behalf of the future. households and to give them the voice they have never A core vision of Plico Energy is ensuring the continued had in our energy markets. This will allow the Plico project improvement of the community, both from a clean to continue to advocate for DER-friendly regulations energy and sustainable financial model, which is why we that will allow them to provide efficient and affordable have also introduced the Community Fund. network and ancillary services through the orchestration of the community-owned distributed assets. For every new member who joins the 2019 project, Another core feature of the Plico Energy project is the Starling Energy Group donates $250 to the Community establishment of community engagement programs that Fund, a central pool of funds that communities can use will enhance the energy literacy of participants. The aim to invest in local projects that are passionate about is that, in addition to providing PV and batteries, we have supporting. created an opportunity to go after the nega-watt – the The Plico Energy project is not capped or bounded by any energy the households the members don’t use, as we regulatory or financial hurdle and aims to progressively will never be incentivized to increase sales through their develop its VPP in WA and beyond over the next decade. retail contract. The goal is to build a VPP that is significant enough to

Energy News 13 progressively develop and test all of the potential energy team of experienced people passionate about making a services that a virtual power station could theoretically difference and servicing global Plico VPPs. provide across the transmission and distribution systems, energy, capacity and ancillary service markets. So if you are in WA join us and if you are not, contact us Our project will be uniquely focused on the member as we are looking for community partnerships in the east experience as ultimately we are there to add value to now. their lives through our service in addition to ensuring Starling Energy’s Plico Energy project recently won AIE they get clean, cheap and reliable energy. The Plico Energy project has plans to expand beyond WA to Perth’s 2019 Energy Innovation of the Year award. For more Australia’s east, north and west in 2020 and is building a information, see page 26. Technology is a means, not an end, in the energy transition by Lachlan Rule, Repowering our Regions Project Lead, Beyond Zero Emissions

Australia has not done well on establishing or retaining a coherent system capable of putting it to work suite of climate and energy policies over the last decade. In a sense, to serve a socially useful purpose. our policy inertia is understandable. In recognition of the need for a The scale and speed of the change (CSIRO), our record low power holistic solution to the climate required for us to limit global purchase agreement (PPA) prices, crisis, Beyond Zero Emissions’ warming to 1.5 degrees above pre- our world-beating uptake of latest body of work has been industrial levels is unprecedented. rooftop solar PV and utility scale identifying opportunities to put clean technologies to use in a way In 2018, the Intergovernmental batteries, innovations in novel that responds to the broader issues AIE Youth Scholarship report: Panel on Climate Change (IPCC) battery chemistries or new modular facing communities around the proposed a global carbon budget renewable energy systems, Australia country. DER integration around the world of 420 gigatonnes of equivalent has the skills and knowhow to carbon dioxide (GtCO2-e), a target make a leading contribution to the BZE’s Repowering our Regions project By Naomi Stringer, PhD Candidate, UNSW Sydney and recipient of the 2019 AIE Youth Scholarship Award which requires worldwide emissions international response to climate maps out the potential benefits of reaching net zero before 2040. change. ambitious climate action in regional Australia. Our work in the Northern Given global emissions in 2017 Despite these promising advances, Territory1 and Western Australia2, exceeded 36 GtCO2-e, and continue if technological solutions alone makes it clear clean technology to rise, we are going to have to have were enough to deal with climate can address many of the social and to do a lot better in coming years. change, we would be a lot further economic issues facing communities, If there is good news to be found along the path to dealing with the businesses and workers as the in reporting on the climate crisis, it problem. Instead, despite declines energy system transitions. is in the ingenuity and remarkable in the use of some fossil fuels, our The BZE publication The 10 GW Vision pace of technological innovation global energy system continues to is a forward-thinking alternative occurring all over the world. Beyond rely largely on extracting millions of to economic strategies based on Zero Emissions has shown in 15 tonnes of coal, oil and gas from the fossil fuels. The report showed world-leading research reports that earth each year. how the NT could create 8,000 jobs we already have the technology we This ‘carbon lock-in’ is a result of our and generate more than $2 billion need to decarbonise all sectors of societies and economies developing of added value by dramatically our economy. In fact, early rollout alongside an ever expanding reliance increasing the Territory’s renewable of zero-carbon technology will place on fossil fuels. Breaking through generation. The Territory can set Australia as an economic leader in this lock-in requires technologies to itself up for decades of sustainable the global, renewable economy. work alongside social, economic and growth by converting abundant As this publication attests, this political solutions to climate change. sunshine into renewable energy, to culture of invention and adaptation The massive adoption of rooftop be used for energy exports, mineral is alive and well in the Australian solar PV in Australia since 2008 beneficiation, manufacturing, energy sector. is a perfect example of a great repowering remote communities, Whether it is the pioneering work technology coming of age in a society and more. on solar PV out of the University ready and capable of exploiting its Collie at the Crossroads is a plan of New South Wales (UNSW) and potential. A 12 MW wind turbine may to create a fair and prosperous the Commonwealth Scientific and be an engineering masterpiece, but future for Collie, while transitioning Industrial Research Organisation it needs an economic and political Western Australia’s South West

14 Energy News Interconnected System (SWIS) to What both of these reports show is In 2020, Beyond Zero Emissions will 100% renewable electricity by 2030. that by identifying opportunities to be continuing our work looking at Collie, in WA’s south-west, is home put clean technology to work solving fossil-fuel reliant towns and regions, to the State’s three remaining coal- social and economic issues, we can making it clear that an ambitious make a much more compelling fired power stations and its only rollout of clean technology can help case for their rapid adoption. By create a sustainable, thriving future coal mines. As the energy system describing a future in which the NT for all communities. changes, the future has grown has repowered its economy with increasingly uncertain for workers in renewable energy and Collie has Decoupling our ongoing prosperity Collie’s coal industry. become a hub of clean industry, from fossil fuels will be the great we help people see how the right challenge of the 21st Century, and BZE’s report identifies 1,750 technologies applied in the right way technological change alone will not potential low-carbon industry and can create the sustainable, fair and be enough to make it happen. manufacturing jobs in the Collie- prosperous communities people What we need now is strong Bunbury region, more than replacing want. government, community and the 1,250 lost in the coal industry. For clean technology developers or industry leadership. Leadership By committing to a rapid energy producers, understanding that their that embraces an ambitious policy transition, and putting policies in operations exist in a much broader agenda and sees clean technology place to support this ambition, context than a single market is a put to use building a safe, competitive advantage over other the WA State Government can sustainable and productive future firms. In an age in which customers, for all of us. look after workers and help create communities and governments are new industries in renewable increasingly demanding private References manufacturing, sustainable materials enterprises create value for more and the reuse and recycling of than just shareholders, savvy 1. The 10 GW Vision, 2019 renewable technology. operators will rise to this challenge. 2. Collie at the Crossroads, 2019

AIE Youth Scholarship report: DER integration around the world By Naomi Stringer, PhD Candidate, UNSW Sydney and recipient of the 2019 AIE Youth Scholarship Award

Australia is one of many countries where the power system is High level observations becoming more decentralised. This is a fundamental structural change and is impacting all aspects of the system in some way. A key insight from this project is 1 With one in five houses now having installed solar PV we are, in that Australia is very much at the many respects, leading the world in navigating the challenges and ‘bleeding edge’ of DER integration. opportunities that this transition presents. However, there are also Nowhere else in the world has lessons to be learnt from other regions. With the support of the AIE comparable distributed PV Youth Scholarship I visited several of these regions with high solar PV penetration, with the exception of penetration and met with industry professionals in May-June 2019. Hawaii2. Whilst there is an enormous volume Over six weeks, I travelled to Hawaii, The overarching project goal was of work being undertaken in Hawaii California, Colorado and the UK to to improve knowledge sharing and by partner organisations, the between regions with high levels meet with stakeholders from 24 view I generally heard was that folks of distributed solar PV. I set out different organisations spanning in Hawaii see their grid as smaller utilities, research institutions, to investigate three specific DER and less resourced than Australia regulatory bodies and start-ups. integration mechanisms that are and, therefore, less likely to find relevant to Australia. However, I also solutions. I presented at and participated in came away with an appreciation of Many other regions with high levels the 42nd International Association some high level trends which appear of DER are well interconnected with for Energy Economics (IAEE) annual consistent across all regions. conference in Montreal part way neighbouring grids, for example From these trends my colleagues through the trip. California and Germany. As one and I have worked to develop a of the longest ‘skinny’ grids with This gave me a chance to reflect on ‘framework’ for thinking about world-leading levels of PV we face what I had learnt, and to immerse decentralisation. A brief discussion challenges (and opportunities) that myself in current innovative thinking of findings is offered here, and more no one else has yet had to manage on energy and economics globally. detailed reporting is underway. at scale and will likely need to

Energy News 15 develop solutions ourselves. This DER is small and it is tempting to The simplified framework was reflected in the keen interest think that the detail really doesn’t highlights some of these aspects, shown by many stakeholders in the matter. And historically that detail paying particular attention to the Australian experience to date. hasn’t mattered. However, as one differences that have historically It was striking that there are still stakeholder observed in the context existed across the voltage level, many open questions regarding DER of inverter connection standards: generator size and demand side integration, and that the challenges “We are beyond being in the weeds, participant size. These three are similar across different regions. we’re down in the nematodes. And the elements of the power system are Equity concerns, limited visibility detail really does matter”. shown as continuums. It is important and DER connection processes were A framework for thinking to stress that a lack of coherence is not necessarily negative. common threads. The following about decentralisation observations recurred in many The framework is structured in conversations: Upon returning to Australia, I took a terms of five decision-making • Whole-of-system thinking needs step back and, in collaboration with regimes, proposed by Outhred4 and to be present at increasingly colleagues, attempted to summarise adapted by Sue5. It is currently being lower voltage levels; the trends underlying the many developed in collaboration with trials, initiatives and regulatory several colleagues at the University • Data is a key enabler, however, processes I had encountered. The of New South Wales. We welcome challenges abound and generally result is a framework for thinking feedback. no one has the degree of visibility about decentralisation (overleaf). desired; It offers one possible option for Three DER integration • Hosting capacity and connection grappling with these trends. mechanisms processes are contentious, with It is important to stress that this trade-offs between ‘fairness’ and framework is not exhaustive. It does As noted, the intent was to efficiency; and not capture every element of the investigate three specific DER • Empowering and supporting power system or decentralisation. integration mechanisms: hosting individuals is a key focus, Also please note that this is not capacity in Hawaii, inverter including through tools and the complete analysis, with further connection standards in California targeted training. reporting currently underway. and Colorado, and flexibility markets in the United Kingdom. Discussions were far reaching and A simplified version of the as these themes became apparent, framework is presented here. Its These are all areas of relevance for I began to dwell on the underlying purpose is to provide a structure for our own industry. For instance the causes. Critically, some ‘intractable’ thinking about decentralisation and Open Energy Networks project, the issues emerged across the different what it means for the power system. current review of AS/NZS 4777 and regions. These trade-offs may take AEMO’s DER integration program6, The second intended purpose of different forms, but in essence and the AEMC’s annual Electricity the framework is to identify gaps; exist in all systems experiencing Networks Economic Regulatory areas where there is an emerging decentralisation. Frameworks (ENERF) review. challenge or opportunity that is Frequently these issues seemed not yet being addressed. This more 1. Hosting capacity in Hawaii to stem from a lack of coherence detailed analysis is not shown here Hawaii is experiencing similar between elements of the power for brevity. penetration of distributed solar PV system. For example connection As decentralisation continues, the to Australia, with at least 16% of requirements are (sensibly) different lack of coherence across different houses having installed PV7,8. It has for generators connected at the elements of the power system are the highest electricity prices of any distribution system compared with being brought to the fore. American state (~25c/kWh USD) and transmission. However, as distribution connection generation grows this lack of What is ‘decentralisation’? coherence may impact system security. Typically these lack of All power systems are somewhat decentralised, and a ‘highly’ coherences are aspects of the decentralised power system could take on innumerable forms. Here, power system that historically made we will define increasingly decentralised power system as one in which sense, but are not suited to a highly the proportion of generation connected to the distribution network is decentralised system. increasing; Whilst grappling with these meta – Generally this means the average generator size (MW capacity) is trends, folks were also sharing reducing; and/or their detailed experiences with me. – The number of active* participants on the demand side is increasing; and And therein lies a key challenge of – The average size of active* participants is decreasing. decentralisation: whilst it is affecting every aspect of the power system * Here we take the AEMC’s definition of ‘active’ to mean a controllable DER and needs to be considered at such as an EV or battery3, and also demand response such as pool pumps. the system level, each individual

16 Energy News These experiences highlight a key concern for connection standards: how to balance ride-through requirements in order to maintain system security at the transmission level and anti-islanding requirements to maintain safety at the distribution level21. The IEEE 1547 connection standard published in 2018 sets out requirements in considerable detail. However, this standard is not yet being applied, and stakeholder conversations suggest aspects of their implementation still need to be ironed out. For instance, the standard covers both synchronous and asynchronous generators and specifies different requirements in Naomi with Barry Mather at the National Renewable Energy Laboratory in Denver, Colorado terms of ‘performance categories’ (category I, II or III and category A or has a Renewable Portfolio Standard NREL study15 showing that V-Var can B). However, the standard does not explicitly state which ‘performance targeting 100% renewable electricity effectively reduce PV curtailment, categories’ apply to specific generation by 2045. although it is important to note that generator types. Instead it provides this is not directly translatable to The current primary energy source is ‘Guidelines for DER performance Australia given our comparatively imported fuel oil for both electricity category assignment’ in an appendix22. high distribution network voltages. and transportation. As a result, As the review of AS4777 progresses, energy security is a key concern 2. Inverter connection standards it will be well worth following the and major driver for the shift to a (US) implementation of IEEE 1547. decarbonised power system9. California does not have the same 3. Flexibility markets A key program of works in Hawaii level of distributed PV uptake as A strong focus on ‘flexibility’ exists has been the DER program, which observed in Hawaii or Australia But it in the United Kingdom23 where the features a range of connection does have significant utility-scale PV uptake of solar PV is surprisingly 10 arrangements . The connection installed with ~11% of the generation high, and there is a growing interest regimes are aimed at increasing fleet ‘gone solar’16. California has a in EVs. hosting capacity and improving target to procure 100% of electricity Although flexibility markets are system outcomes. They include: from zero carbon sources by 204517. nascent, platforms exist to connect • Customer Grid-Supply Plus: the California’s distributed PV fleet participating generators and loads utility is able to curtail remotely is also set to grow with the 2019 with distribution utilities in order 11 under certain circumstances ; Building Energy Efficiency Standards to meet network needs. Primarily • Smart Export: install PV with a requiring all new homes from 1 this enables deferral of network battery and only able to export January 2020 to include sufficient PV investment using ‘non wires’ during certain hours12; and to meet annual household energy solutions. • Customer Self-Supply: no export consumption18. For example in the UK, Piclo offer network operators an option for to the grid is possible, however, Australia has recently observed high increasing visibility of network needs the connection process is levels of small-scale distributed PV 13 as well as an auction service via an expedited . loss during major grid disturbances6. online portal24,25. Whilst distribution According to one stakeholder In California two major grid network operator Western Power interview, roughly 75-80% of disturbances recently led to the Distribution has established its PV systems are currently being loss of 900MW and 1200MW of own ‘Flexible Power’ platform and installed with a battery. Whilst PV respectively, largely due to matching capability26. similar programs exist in Western the performance of ‘momentary These services are currently Australia14, Australia has largely cessation’19,20. However, unlike in reminiscent of Australia’s RIT-D managed hosting capacity to date by Australia, PV loss is primarily from process, with participants entering limiting the allowed connection size. utility-scale generators. Work is into contracts to provide megawatts Questions remain in both Hawaii and underway in California to change (of generation or demand) during Australia on how to manage ‘legacy’ PV inverter settings following these certain periods throughout the year fleet, the role of DER in the broader events. However, changing inverter to networks. However, the intent power system and appropriate settings is less financially viable for is to gradually move to shorter voltage management approaches. the many smaller distributed PV timeframes and to include a larger Several stakeholders referred to this systems. pool of participants, eventually

Energy News 17 18 Energy News developing a fully-fledged flexibility References marketplace. 1. APVI, 26 April 2019: Australian PV Concluding remarks market since April 2001: tinyurl. com/uou4b5e As decentralisation continues it 2. International Energy Agency, is important that we continue to Renewable Energy Medium-Term learn from international experience. Market Report 2016, 2016: tinyurl. However, it is also likely that a com/vjyc7sk lot of solutions will need to be ‘home grown’ and many eyes are 3. AEMC, Economic Regulatory turned to Australia as we grapple Framework Review: Integrating with some exciting challenges and Distributed Energy Resources for the Grid of the Future, 26 September opportunities. 2019: tinyurl.com/wjr3kf2 I am deeply grateful to all the 4. H. Outhred, Comments on the people who willingly shared International Comparison of their time and experiences with Electricity Markets and Market Power me, as well as the people who Mitigation, IEEE Power Engineering encouraged and supported me Society General Meeting, 2007, pp. throughout the project. Thank you 1-4 all! A special mention to my partner, 5. K. Sue, I. MacGill, and K. Hussey, who provided invaluable support Naomi at the 42nd International Association Distributed energy storage in for Energy Economics (IAEE) annual throughout. Australia: Quantifying potential conference in Montreal, Canada The financial support offered benefits, exposing institutional through the AIE Youth Scholarship challenges, Energy Research & 17. California Energy Commission, and University of New South Wales Social Science, vol. 3, pp. 16-29, Draft 2019 Integrated Energy Policy travel scholarship (Postgraduate 2014/09/01/ 2014 Report, 11 August 2019: tinyurl.com/ Research Student Support) made 6. AEMO, Technical Integration of tkw7da7 this project possible and I would like Distributed Energy Resources, April 18. California Energy Commission, 2018 to thank the AIE and UNSW for this 2019: tinyurl.com/r366pul kind support. Integration Energy Policy Report - 7. Hawaiian Electric Companies, update volume 1, 2018: tinyurl.com/ The AIE Youth Scholarship not only Quarterly Installed Solar Data: ugdbemc provided financial support, but Cumulative Installed PV as of 30 also an invaluable opportunity to September 2019, 2019 19. NERC, 900 MW Fault Induced Solar Photovoltaic Resource Interruption challenge myself and a platform 8. United States Census Bureau, 2018. Disturbance Report, February 2018 from which to reach out to people QuickFacts: Honolulu County, around the world. Hawaii: tinyurl.com/thzanky 20. NERC, 1,200 MW Fault Induced Solar Photovoltaic Resource Interruption Finally, as noted above, the 9. Hawaii State Energy Office, Hawaii Disturbance Report, June 2017 framework analysis is still underway Energy Facts and Figures, June 2018: and feedback is very welcome. tinyurl.com/yxy7bt9s 21. IEEE PES Industry Technical Task Force, Impact of IEEE 1547 Standard Free icon references 10. 2019: Docket 2014-0192, Instituting a Proceeding to Investigate Distributed on Smart Inverters, May 2018: Energy Resource Policies: tinyurl. tinyurl.com/rybqz6t • Grid, Google 2019: tinyurl.com/ com/sr99r7b wm45s6l 22. 1547-2018: IEEE Standard for 11. Hawaiian Electric Companies, 2019: Interconnection and Interoperability • Electric tower, Retinaicons 2019: Smart Export: tinyurl.com/rlscant of Distributed Energy Resources with tinyurl.com/wl7ww5l Associated Electric Power Systems 12. Hawaiian Electric Companies, • Electric tower, Smashicons 2019: Interfaces, 2018 Customer Grid-Supply, 2019 tinyurl.com/qqqpb4x 23. Ofgem, Upgrading Our Energy 13. Hawaiian Electric Companies, 2019: • Power tower, Freepik 2019: System Smart Systems and Flexibility tinyurl.com/wnhjnco Customer Self-Supply: tinyurl.com/ ubjs8g6 Plan, July 2017 • Home, Freepik 2019: tinyurl.com/ 24. Piclo, Flexibility and Visibility: uhu5euo 14. Horizon Power, 2019. Solar Technical Requirements: Generation Investment and opportunity in a • Transformer, Freepik 2019: Management: tinyurl.com/wnhvzzb flexibility market place, September tinyurl.com/tf5lpda 2019: tinyurl.com/vhxl6hq 15. J. Giraldez et al, Advanced Inverter • Battery, Smashicons 2019: tinyurl. Voltage Controls: Simulation and 25. Piclo, Energy on Trial: Piloting a com/uhjbxlk Field Pilot Findings, NRELOctober flexibility marketplace to upgrade • Factory, Vectors Market 2019: 2018 our energy system, September 2019: tinyurl.com/qqvs3me tinyurl.com/vdn7d5q 16. California Energy Commission, 2019: • Wind turbine, Fermam Aziz 2019: California Electricity Data, Facts, and 26. Western Power Distribution, 2019: (link not available) Statistics: tinyurl.com/u94293t Flexible Power: flexiblepower.co.uk

Energy News 19 Around the Branches 2019

AIE BRISBANE Luke Menzel, CEO, Energy Efficiency Council. Chaired by Stephanie Bashir, CEO and Founder, Nexa Advisory • 21 August: Energy leadership series: meet Chloe Munro AO, • 20 November: Navigating energy security in an uncertain world Professorial Fellow, Chair of the Energy Transition Hub with John Blackburn AO, consultant in defence and national Strategic Advisory Panel and Impact Investment Group's two security Solar Funds. Facilitated by Kylie Lane, Ashurst Partner • 9 October: CleanCo: A new force in Queensland Renewable • 17 July: Electric mobility and the modernised grid in the Energy with Miles George, Interim CEO, CleanCo Australian context with Carola Jonas, CEO and Founder, • 13 September: New horizons in clean energy and the CEFC’s Everty; Chris Mills, CEO, Evie Networks; and Justin Harding, contribution to a stable grid with Ian Learmonth, CEO, Clean Manager Network Innovation, AusNet Services Energy Finance Corporation • 9 July: The nuclear option: a short review with Robert Parker, • 8 August: Visit to AEMO control room Vice President, Australian Nuclear Association; Ian Hore- • 18 July: A perspective on Australia’s microeconomic reform Lacy, Senior Advisor, World Nuclear Association; and Robin journey with John Pierce AO, Chairman, AEMC Batterham, Past President of the Academy of Technology and • 8 May: Retail electricity prices: regulated default offer or a Engineering (2007-2012), former Chief Scientist of Australia competitive market with Professor Paul Simshauser AM and (1999-2005), and past President of the Institution of Chemical Associate Professor Tim Nelson, Griffith Business School Engineers • 10 April: Natural gas in Australia: Outlook to 2050 with Andrew • 4 July: YEPs: Women in Focus: Female founders with Katherine Dillon, CEO, Energy Networks Australia and Dr Malcolm McConnell, CEO and Founder of Brighte; Stephanie Bashir, Roberts, former CEO at the Australian Petroleum Production principle of Nexa Advisory; Marteen Burger, COO and Co- and Exploration Association (APPEA) Founder at Jaunt Motors; and Kimberley Winter, CEO and • 27 March: Coal and climate risk: what does the future hold? Founder of Evolte with the Hon Ian Macfarlane, CEO, Queensland Resources • 27 June: YEPs: Women in Focus: Success, achievements and Council, former Federal Resources Minister and Shadow challenges ahead with Vanessa Petrie -Chief Executive Officer, Minister for Resources and Energy, Queensland; Ben Beyond Zero Emissions; Kiya Taylor Knowledge Sharing Armitage, Chief Development Officer, New Hope Group; Manager, ARENA; and Violette Mouchaileh Executive General Meredith Bennett, Partner, Ashurst; and Nick Rees, Head Manager, Emerging Markets & Services, AEMO of Natural Resources, Corporate & Institutional Banking, • 31 May: YEPs: Second site visit to Monash University’s National Australia Bank Clayton’s microgrid • 20 February: Connecting battery storage in the NEM – • 15 May: YEPs: Latrobe Valley tour opportunities and challenges with Paul Newman, Partner, • 3 May: YEPs: Site visit to Monash University’s Clayton Ashurst and Steve Wilson, Principal Power Generation microgrid Engineer, East Coast Energy, Aurecon • 25 March: YEPs: Site visit to AGL Somerton Power Station • 8 March: YEPs: International Women’s Day trip to Eildon AIE CANBERRA • 26 Feb: AIE Melbourne YEPs networking and drinks • 27 August: Green Steel: Forging a new industry in Australia AIE NEWCASTLE with Professor Ken Baldwin, Director, ANU Energy Change Institute; Dr John Pye, ANU College of Engineering & • 21 November: A different way of looking at our power systems Computer Science; Peter Haenke, Director, Strategy, ARENA; with Terry Summers, Senior Lecturer, University of Newcastle Andrew Dickson, CWP Renewables; Cath Blakey, Wollongong • 17 April: Hydrogen’s back: this time for real? CSIRO Energy City Council; and Nick Birbilis, Deputy Dean, College of Centre Engineering and Computer Science, ANU • 30 May: The role of social licence to operate in a just energy AIE PERTH transformation, AIE/ANU Energy Change Institute: Energy Conversation Series • 5 December: AIE Perth/YEPs/Women in Energy (WIE) end-of- year sundowner 2019 AIE MELBOURNE • 28 November: The new WA policy unit with Kate Ryan, Acting Executive Director of Energy Policy WA and a member of the • 18 November: The two-way grid: is there a common vision and WA Energy Transformation Taskforce do we need it? with Alicia Webb, Principal Analyst – Emerging • 20 November: YEPs: An introduction to the Hazer Process – low Markets and Services, AEMO; Stuart Johnston, Distribution emission hydrogen with Luc Kox, Commercial Manager, Hazer Strategy Specialist, AEMO; Kedem Levy, Energy Flexibility Group Advisor, Enel X; Neil Gibbs, Founder & Principal, Marchment • 12 November: AIE/UWA/Infinite Energy Solar Car Challenge Hill Consulting; hosted by Stephanie Bashir Founder, Nexa 2019 for high school students Advisory and AIE Melbourne committee member • 23 October: WIE: Inspiring Leaders Networking Breakfast with • 9 October: Energy industry networking drinks Martin Maticka, Group Manager, Western Australia Markets, • 25 September: Young Energy Professionals (YEPs): Bringing AEMO Australia’s largest power to hydrogen project to life with Mike • 17 October: Community energy in Western Australia with Mark Davis, Network Innovation Manager, Jemena Taylor, Principal – Built Environment Sustainability, Josh • 17 September: Electric mobility policy landscape: Australian Byrne & Associates, Brian Innes, Managing Director, Starling and global context with Behyad Jafari, CEO, EV Council and Dr Energy, and Rodney Littlejohn, Managing Director, Tersum Alina Dini, Director, Project Development for Large Programs, Energy and Interim CEO of Geraldton Community Energy Verdia and Industry Fellow at the Institute for Future • 19 September: WIE/YEPs: Workforce diversity and inclusion Environments at Queensland University of Technology (QUT) strategies in the energy sector with Dr Mary Stewart, CEO • 12 September: Short-term forecasting: all you need to know Energetics, Sam Bartholomaues, Head of Energy (Australia), with Jack Fox, Principal Analyst AEMO; Dr Matthew Jeppesen, BHP, and Cameron Parotte, Executive GM, AEMO. co-founder and MD, Proa; Peter Degorski, energy analyst, Moderated by Lenda Oshalem, Associate Partner, Newgate RepuTex; Professor Rob Hyndman, Professor of Statistics, Communications Monash University • 18-19 September: 19th Energy in WA Conference: Delivering in • 26 August: Demand response energy pool: let's have a Uncertain Times conversation with Suzanne Falvi – Executive General Manager, • 18 September: WA Energy Awards 2019 Security and Reliability, AEMC; Violette Mouchaileh, Executive • 12 September: YEPs: Waste to energy – here and around the General Manager, Emerging Markets & Services, AEMO; world with Niels Jakobsen, Senior Project Manager, WtE Associate Professor Bruce Mountain, Director, Victoria Ramboll and Frank Smith, CEO, Avertas Energy Energy Policy Centre, Victoria University; Kedem Levy, Energy • 21 August: AIE/Energy Efficiency Council (EEC) Leaders' Lunch Flexibility Advisor, Enel X; Craig Memery, Policy Team Leader, with the Hon. Bill Johnston MLA, Western Australia’s Minister Energy & Water Consumers’ Advocacy Program, PIAC; and for Energy

20 Energy News • 21 August: YEPs: Energy efficiency in a dynamic energy • 19 February: Oil and LNG markets in turmoil: where next? with landscape with Luke Menzel, CEO, Energy Efficiency Council Dr Fereidun Fesharaki, Founder and Chairman, FACTS Global • 19 August: Site tour to ATCO’s Clean Energy Innovation Hub Energy • 13 August: WIE: The contribution of energy transformation to the economy with Stephen Edwell, Independent Chair, AIE SYDNEY Energy Transformation Taskforce, WA Government; Michelle Shepherd, Commissioner, Australian Energy Market • 5 December: YEPs end-of-year drinks Commission; and Dr Kelly Burns, Research Fellow, Curtin • 19 November: The future of the Australian Energy market – University. Facilitated by Sally McMahon, Chair, Women possible scenarios with Alan Rai, Senior Economist, Australian in Economics Network and MC-ed by Aditi Varma, Chair, Energy Market Commission (AEMC), Sandra Gamble, Board Women in Energy member and Chair of System Operations Committee – New • 24 July: WIE networking drinks Zealand Electricity Authority, and Hugh Bannister, CEO, • 24 July: Lessons and warnings from the east: How WA avoided Intelligent Energy Systems. Opening address by Richard the NEM crisis and how it is creating its own experiment with Matthew Warren, policy specialist Graham, Partner, Clifford Chance and closing remarks Nadia • 4 July: YEPs: Start of financial year sundowner Kalic, Partner, Clifford Chance and Co-Head of the Global Oil • 21 June: YEPs: Site visit to Rottnest Island’s Hybrid Power & Gas Group System • 6 November: Social acceptance and public legitimacy for • 7 June: WIE: Inspiring Leaders networking breakfast with renewable energy with Nicky Ison, Founding Director, Stephanie Unwin, CEO, Horizon Power Community Power Agency, Tom Morton, Associate Professor, • 6 June: Distributed energy resources: the challenges and University of Technology Sydney, Devleena Ghosh, Professor, opportunities with Krystal Skinner, Manager New Energy, University of Technology Sydney, and Steve Blume, Synergy; Andrew Blaver, General Manager – Consumer President, Smart Energy Council Energy, Horizon Power; Ben Stanton, Business Development • 21 October: Eastern Australia gas outlook with a historical Manager, Western Power; and Robert Ceic, Technical context with Stephen Kelemen; hosted by K&L Gates Director & Australian Service Line Leader – Power Generation • 2 October: YEPs: Future-proof your career in energy & Renewable Energy, GHD • 16 September: The role of microgrids in Australia's energy • 30 May: YEPs: Generator insights and commercial implications future with Josh Harvey, Essential Energy; Scott Ferraro, • 24 May: Women in Energy (WIE): 100 Women Connect event Monash University and Ella Tofighi, Goldwind Australia • 30 April: WIE/YEPs: Wholesale electricity market (WEM) insights • 29 August: YEPs: movie night ‘Demain/Tomorrow’ • 21 March: WIE: Personal impact, influence and visibility for • 14 August: 20 years of generation in the NEM – Insights to women with Shona Rowan inform the next 20 with Paul McArdle, CEO, Global-Roam • 18 March: Hydrogen: the challenges and opportunities with Pty Ltd and Jonathon Dyson, Director, Greenview Strategic Peter Kasprzak, co-founder and CEO, Innovate Australia and Consulting project leader for the Hydrogen Highway Group; Raymond • 29 July: Connecting new generation to the NSW electricity Schmid, market development director at Switzerland’s Nel system with Byron Serjeantson, Director, Renew Estate; Hydrogen; and Russell James, General Manager, Business Alex Wonhas, Chief System Design and Engineering Officer, Development and Customer Experience, ATCO Gas Australian Energy Market Operator (AEMO); Darren Spoor, • 8 March: YEPs: Networking 101 with Cheryl Edwards, solicitor, Specialist, AEMO; and Tom Walker, Senior Economist, member of the Foreign Investment Review Board (FIRB) and Australian Energy Market Commission (AEMC) company director • 25 July: YEPs: Cleantech hackathon • 6 March: Luncheon with the Minister: WA’s Energy • 20 June: YEPs trivia night Transformation Strategy with WA energy minister Bill Johnston • 4 June: Reliability and security in the NEM with a high • 21 February: WIE: Networking drinks and meet the penetration of wind, PV and storage with Hugh Outhred, committee Managing Director, Ipen Pty Ltd • 19 February: Oil, gas and coal – a look into the future for • 24 May: YEPs: 5B solar factory tour and Pingala workshop Western Australia with Martin Wilkes, Managing Director • 16 May: YEPs: Financing renewable energy projects – challenges & Partner, RISC and Murray Meaton, Managing Director, & opportunities with Andrew W Smith, Global Head of Energy, Economics Consulting Services Specialised & Acquisition Finance – Corporate & Institutional Banking, National Australia Bank; Kelly Davies, Partner, AIE SUNSHINE COAST Norton Rose Fulbright Australia; and Andrew Gardner, Wind Sector Lead and Director, Corporate and Project Finance, • 5 December: USC Renewable Energy District Cooling with Clean Energy Finance Corporation Angela Cooney, Sustainable Solutions Manager, Veolia • 30 April: Supply and demand pressures in the eastern and Dennis Frost, Manager – Energy and Infrastructure, Australian gas market with Paul Balfe, ACIL Allen Consulting; University of the Sunshine Coast Dave Green, Jemena; Tor McCaul, CEO, Comet Ridge; Kylie • 15 August: Energy from waste for the circular economy with Hargreaves, Australian Industrial Energy; Mike Lauer, CEO, Joyanne Manning, Leader – Australasia Resource and Waste GasTrading; Damian Dwyer, APPEA; Stephen Bell, CEO, Management, Arup Qenos; Graeme Dennis, Partner, HWL Ebsworth; and Chris • 23 May: Hydrogen Energy with Claire Johnson, CEO, Hydrogen Sacré, Partner, HWL Ebsworth Mobility Australia • 16 April: The move to low sulphur marine fuel oil: its impact on the marine and petroleum industries, Australia and the AIE SOUTH AUSTRALIA world with Angela Gillham, Deputy CEO, Maritime Industry Australia and Paul Barrett, CEO, Australian Institute of • 19 November: South Australia’s energy transition with Dan van Petroleum Holst Pellekaan MP, Minister for Energy & Resources • 12 April-15 November: AIE Sydney Branch Mentoring • 29 October: YEPs: Lunch & Learn: ElectraNet Flagship Projects Program and Industry Challenges with Ashley Manna, Group Executive • 9 April: YEPs: Dissection of Federal energy policies: election Corporate Development, Electranet edition with Dr Gordon Weiss, Energetics; Guy Dundas, • 12 September: YEPs: Lunch & Learn: Hydrostar with Greg The Grattan Institute; and Dylan McConnell, University of Allen, Managing Director, Hydrostor Melbourne • 10 September: Eastern Australia's largest undeveloped and uncontracted gas reserve with Richard Peasgood, General • 25 March: The challenges for transitioning to a low-carbon Manager Commercial, Leigh Creek Energy economy • 17 July: 2019 AIE Adelaide Annual Awards with keynote speaker • 21 March: YEPs: Challenges for energy entrepreneurs with Kevin Gallagher, Managing Director and CEO, Santos Amber Electric, Waste Ninja and CLEAG • 25 June: South's Australia's energy transition: outcomes to date, opportunities and lessons learned with Sam Crafter, SA • 25 February: Nuclear Energy as an Option for Australia? with Department for Energy and Mining Helen Cook, Allens. Annual Meeting of the Four Societies: • 29 May: YEPs: Learnings on hydrogen from Japan and South the AIE, the Australian Nuclear Association, the Nuclear Korea with Owen Sharpe, Department for Energy and Mining Engineering Panel of the Sydney Branch of Engineers and winner of the 2018 AIE SA YEPs Development Award Australia, and the Royal Society of New South Wales • 11 April: The business case for transitioning to clean energy with Note: For member-access to livestream and/or filmed Kane Thornton, CEO, Clean Energy Council recordings of branch events visit www.aie.org.au/events

Energy News 21 AIE BRISBANE

CEFC: New horizons in clean energy

On 13 September 2019, AIE Brisbane convened a well- attended event entitled New horizons in clean energy and the Clean Energy Finance Corporation’s contribution to grid security presented by CEFC Chief Executive Ian Learmonth. The CEFC, a transformational agent in Australia’s decarbonisation journey, is responsible for investing $10 billion in clean energy projects on behalf of the Australian government. It helps lower Australia's carbon emissions by investing in renewable energy, energy efficiency and low emissions technologies and of the network with limited capacity, resulting in supporting innovative start-up companies through the material marginal loss factors (MLF) and curtailment Clean Energy Innovation Fund. Across its portfolio, the impacts; CEFC invests to deliver a positive return for taxpayers. • System Security: the cumulative impact of more renewable generators is reduced system security Over the course of his presentation, Ian highlighted the which impacts on the ability to maintain a stable changing face of the electricity sector, and its impact power system. on the CEFC’s investment focus in the post-Renewable Energy Target (RET) period which has led to around $1 In this respect, the CEFC has or is exploring investment billion in investment in both wind (~2GW) and solar (~1 opportunities in battery and pumped storage, such as GW) generation. He noted the significant investment Genex, the first project in Australia to co-locate a large- portfolio in Queensland, predominantly backed by scale solar farm with a large-scale pumped hydro storage international investors. project. Today’s electricity market imperatives include the The CEFC is also supporting the Federal government’s provision of grid support for new generation, ensuring Underwriting New Generation Investments (UNGI) reliability, preserving system security and curtailment of program, facilitating investment in renewable generators. The CEFC intends to focus on these areas, energy zones (REZ) and improving grid strength with particularly: synchronous condensers investing in transmission infrastructure, including leveraging concessional capital • Reliability: the retirement of coal-fired generators in the Integrated System Plan. will drive the need for more flexible renewable energy capacity; AIE Brisbane thanks Ian for his time and insights and also • Curtailment: remote generators in good wind/solar Ashurst for hosting this event. resource areas are increasingly connecting into areas By Srian Abeysuriya, AIE Brisbane

22 Energy News AIE MELBOURNE

The two-way grid: is there a common vision and do we need it?

AIE Melbourne committee member Stephanie Bashir chaired this informative panel session on 18 November 2019 with Alicia Webb, Principal Analyst – Emerging Markets and Services at AEMO, Stuart Johnston, Distribution Strategy Specialist at AEMO, Kedem Levy, Energy Flexibility Advisor at Enel X and Neil Gibbs, Founder & Principal at Marchment Hill Consulting. The panellists initially described the ‘what and why’ of the two-way grid, followed by questions from the problematic. The audience raised While no-one really knows what audience. Stephanie kept the night the issue of air conditioning-based the future looks like, industry has flowing until we ran out of time. demand response and the fact that been working to create a picture This was the first of a planned it is unlikely to be effective under of the two-way grid, the Open series of discussions on what the current service offering constructs. Energy Network initiative being an future grid might look like. None of Australia is, and will continue to be, important example. us know the answer, but together the most decentralised electricity Work on the architecture must be we will create the future of energy grid in the world. To allow these new done to deliver fairness and equity in Australia. A lot of ground was assets to operate on the network to Australian energy consumers. This covered on the night with some good humour and, surprisingly, not a we need to get a licence to drive on point was made a number of times lot of political commentary intruding the energy highway in the form of during ensuing discussions with the on proceedings. standards and guidelines. audience, as was the point that value delivery to consumers is key. It was clear from the speakers that Invisible solar on the low voltage we really don’t know what the future network can be predicted, but It was a point well made that there grid will look like in fine detail, but batteries can’t be predicted in terms are many unknown unknowns. consumers are driving the change. of when they will generate from a The energy stored in one million This has been made possible by the despatch planning perspective. electric vehicles (EV) is more than opportunity provided by technology, particularly solar, which is enabling consumers to take power back into their own hands. It can be argued that the loss of trust in the energy sector by consumers is a major driver of solar PV uptake and the dividend of a one-sided market. Traditionally, customers have been treated as an homogeneous group, but the world has moved on with the ability, enabled by technology, to address a customer segment of one. This will help re-engage consumers, who are largely disengaged or actively hostile to the sector. We are moving from telling the customer what they can have to providing what customers want. Engagement on demand response at a consumer level has been

Energy News 23 the storage capacity of Snowy 2.0. have had eight years of smart meter the same in any scenario planning The extension to this point was: why experience in Victoria and not much but the point was made by another make a big bet on Snow 2.0 when to show for it in terms of service speaker that the system will never a million little bets spread the risk improvement or new products. be static, it will keep decomposing/ and create greater opportunity to Cost reflective pricing keeps getting changing and while this is happening balance supply and demand locally? talked about but not realised. AEMO can’t stop what they have to The NEM is like a clapped out Holden Retailers sell the cost of the network do to maintain the supply-demand with bits falling of it. We have to and nothing about the embedded balance. keep the car driving while replacing value because they don’t want to. Essentially, the long term re- the engine, was the analogy offered. They could do so if they choose. architecting of the system is not Uberisation is not the answer as the being done and is urgently needed. consequences of system failure are PV has increased, arguably because The rollout of DER is set to continue significant, so we can’t just call on trust in the energy sector has apace and is only making this need the Uber model to save us. dramatically declined. Prices have increased by a factor of two or more pressing. The next summer The question of public versus private three just in the last few years. This of our discontent looms again and benefit was raised. While solar has driven customers to create a will continue to re-occur until some is decentralising profits through solution for themselves. substantive change is made to our benefits to owners of solar systems, energy system as a whole. the inequitable way in which these The question arose as to what was benefits are being distributed the vision with regards to who pays As is usual at AIE Melbourne events has social equity issues that need and who should pay? The answer a lively and extended conversation addressing. was of course equitable distribution ensued over food and drinks with An audience member made the of costs but as one panel member a large number of the audience assertion that we have a lack of price said, we all pay. remaining after the panel Q&A signals and at a residential level Looking ahead to 2050, the view was finished. that certainly has to change. We that the asset sets would be much By Shaun Scallan, AIE Melbourne

AIE PERTH

19th Energy in Western Australia 2019 Conference Opening the first day’s morning session with some global context- setting was Professor Paul Stevens, A highlight of the WA energy sector This year’s theme Delivering in Chatham House – The Royal Institute and AIE Perth’s calendar, the Energy Uncertain Times explored the range of International Affairs, who outlined in Western Australia Conference on 18- of uncertainties influencing change the changes taking place in national 19 September 2019 attracted a wide in the Australian energy market and international capital flows, the range of high profile speakers. The including policy, technology, the interaction between global energy conference was opened by the Hon markets and projects, and the way Peter Tinley MLA, WA’s Minister for decarbonisation imperative and in which emerging technologies are Housing, Veterans Issues, Youth and the rise of the prosumer and their impacting energy financing. Asian Engagement. impact on risk and investment. Risk and investment was explored by a number of speakers including AEMO Managing Director and CEO Audrey Zibelman who discussed the challenges facing the energy industry, its areas of vulnerability and likely disruptions, as well as AEMO’s three-year plan to deliver benefits for consumers, system participants and stakeholders.

Leonard Quong, Head of Australian Research, BloombergNEF gave an overview of trends in national and international capital flows in the energy sector and the extent to which policy uncertainty may be stemming inward investment in Australia.

24 Energy News Politics and policy was discussed by several speakers including Tony Wood, Director Energy, Grattan Institute who questioned whether energy markets can manage risk and deliver investment when political preference drives policy. Robert Pritchard, Executive Director, Energy Policy Institute of Australia outlined the challenges facing energy policymakers as they tackle the changing nature of the market. A session on energy policy and productivity saw Dr Mary Stewart, Chief Executive Officer, Energetics discuss industrial energy consumption and how factors such as price, technology and decarbonisation of the energy a panel discussion on transition AEMO, Philip Lewis, Chief Executive system will drive change. and the fossil fuel landscape with Officer, VaasaETT, Guy Chalkley, Jonathan Jutsen, Chairman and Stephen Hall, Vice President Power Managing Director, Western Power, Chief Executive Officer, Australian and New Markets, Woodside Energy, Dermot Costello, WA Regional Alliance for Energy Productivity also Sam Bartholomaeus, Head of Advisor, Clean Energy Council and provided practical ways of improving Energy (Australia), BHP and Taron Stephanie Unwin, CEO, Horizon energy productivity to lower bills, Brearley, General Manager at Power. boost competitiveness, reduce WA’s Department of Jobs, Tourism, The changing fossil fuel landscape emissions and provide affordable, Science and Innovation (JTSI). saw Robert Sims, APAC Head of Gas reliable energy in Australia through EVs, behind-the-meter storage and & LNG Research, Wood Mackenzie innovation. VPPs were discussed by Emma outline the role for Australian LNG Jason Waters, Chief Executive Fagan, TESLA with Russel James, in an evolving international market. Officer, Synergy,C hris Alexander, GM Business Development and Daniel Kalms, Senior Vice President Director Advocacy and Customer Experience at ATCO’s Scarborough, Woodside explored Communications, Energy Consumers Clean Energy Innovation Hub the potential for further expansion Australia and Kate Ryan, Executive outlining the potential for integrating in WA LNG and the opportunities this Director, Energy Policy WA gave their gas, solar PV, battery storage and brings to downstream gas users. views on what Australia’s future hydrogen production in the future Finally, the rising importance electricity system might look. energy mix. of social and community values The rise of clean energy investment A panel discussion on distributed for energy sector operators was was explored by Rob Wilson, Head energy resources (DER) led by Bruce explored by Nicky Cusworth, Chair, of Western Australia, Clean Energy Mountain, Associate Professor Economic Regulation Authority, Finance Corporation as well as the and Director, Victoria Energy Dr Juan Carlos Boue, Curtis and role of the CEFC in WA’s South West Policy Centre at Victoria University APPEA’s Director of Communications Interconnected System (SWIS) and comprised Violette Mouchaileh, Sarah Browne. the wider Australian market. Executive General Manager, All photos courtesy of the AIE and the AIE Perth’s Murray Meaton led Emerging Markets and Services, Government of Western Australia.

Energy News 25 AIE perth

2019 Energy in Western Australia Awards

Western Australia’s energy industry celebrated the WA funds to invest in the rapidly-growing asset class of Energy Awards at Fraser’s Restaurant in Perth’s Kings virtual power plants. Thanks to the finalistsATC O Park on 18 September 2019. Australia, Horizon Power and Western Power/ Supported by AIE Perth, the awards recognise the Synergy; importance of sharing innovation, best practice and • Advancing Women in Energy 2019: Boston Consulting continuous improvement in the energy sector by Group for the significant effort and investment they celebrating the success of company initiatives and have made to promote women in energy across individual achievements across four categories: Young Australia and particularly within WA from their Perth Energy Leader, Energy Innovation, Advancing Women in office. Thanks to finalistsWestern Power and Jessica Energy, and Energy Professional. Dyer; From a host of high-quality entrants, the judges selected • Energy Professional 2019: jointly won by Matt Cheney the following winners: from Western Power who has 20 years of experience • Young Energy Leader 2019: Genevieve Simpson, in leading industry-changing projects, and by Andrew Manager of Western Power’s government relations Blaver from Horizon Power who has excelled in team and vice-chair of AIE Perth. Thanks to finalists seeking innovative solutions to supply challenges in Chris Wilson, Lex Lanyon, Katie Cook and Chris micro grids. Thanks to the finalistsDominic Rodwell Binstead; and Krystal Skinner. • Energy Innovation 2019: Starling Energy and SUSI AIE Perth acknowledges the support of the branch’s Partners for the Plico Project whose business model Young Energy Professionals (YEPs) and Women in Energy allows them to drive down capital and operational group for sponsoring the Young Energy Leader and costs and reduce risk to allow infrastructure capital Advancing Women in Energy awards, respectively.

26 Energy News AIE perth AIE perth

Infinite Energy Solar Car Challenge 2019

Infinite Energy, AIE Perth and the University of Supplied with a motor and a solar panel in Term 2 Western Australia (UWA) co-sponsored and hosted the courtesy of the AIE, the teams had several months in Infinite Energy Solar Car Challenge for WA high school which to design and build their cars. students on 12 November 2019. This process introduced them to a number of Held under a cloudless sky on UWA’s tree-fringed James engineering concepts, such as photovoltaic generation, Oval, the day-long competition brought together around car energy use and losses, efficiency, aerodynamic drag, 180 students in 40 teams from 14 high schools around prototyping using 3D CAD and 3D printing, as well as Perth and nearby towns. Inclement weather on the putting a lot of mathematics to practical use. original date meant the challenge had to be shifted by 12 days which then clashed with Year 10 exams at a couple During the year, schools had the option of attending of schools, causing five teams to withdraw. a workshop run by the coordination team to expand their knowledge of science, technology, engineering and Teams competed from the following schools: Aquinas mathematics principles. They also had the opportunity to College, Carey Baptist College, Darling Range Sports ask questions relating to the planning and design of their College, John Calvin Christian College, John Forrest solar car and to receive guidance from past participants. Secondary College (eight teams), Lynwood Senior High School, Morley Senior High School, Perth College, On the day, the competition saw the teams race their Pinjarra Senior High School, Scotch College, South Coast cars around Infinite Energy’s 90-metre figure-of-eight Baptist College, Ursula Frayne Catholic College and track – a type of solar Scalextric – in order to determine Warwick Senior High School. A home-school team also the fastest-engineered car. Each car had to carry a participated with a number of schools that weren’t able driver (an uncooked egg) which had to survive the race to finish their car designs observing from the side. uncracked.

Energy News 27 After competing in round robin races in the morning – The four winning teams had the option of representing and a welcome ice-cream from Scoops R Us, courtesy Western Australia at the Australian-International Model of Infinite Energy – the successful teams went through Solar Challenge 2019 held on 30 November and 1 to knock-out rounds after lunch, when the following December 2019 at the University of Tasmania in Hobart. winners emerged: Congratulations to all the students, teachers and parents • 1st place, $1,000 prize: John Forrest Secondary involved and to the organisers, all of whom put in a great College which also won the award for best-engineered deal of effort over the year to bring the competition car; to fruition. Positive feedback is already rolling in with • 2nd place, $750 prize: Carey Baptist College; requests for it to be held again next year. • 3rd place, $500 prize: John Forrest Secondary Special thanks to UWA’s Jun Hua Guo as event organiser College; and scrutineer, Infinite Energy’sM organ Munro and • 4th place, $250 prize: Morley Senior High School. Emma Fox, and AIE Perth’s John Saratsis (MC), Noel Certificates were also handed out for best 3-D printed Schubert and Barry Ladbrook. Also thanks to UWA and design, most spectacular crash, and best video Willetton SHS for showcasing their MotorSports car and presentation. full-sized solar car respectively.

AIE perth yeps

Energy efficiency in a dynamic energy energy bills, ensuring energy security, reducing emissions landscape and creating economic growth and jobs. Luke drew on global success stories to illustrate his point, including: AIE Perth YEPs were fortunate to host Luke Menzel, CEO • California's pioneering energy efficiency measures of the Energy Efficiency Council, on 21 August 2019 for which averted an energy crisis in the 1970s; and a presentation on energy efficiency in a dynamic energy • the emergency energy efficiency actions taken by landscape. Japan to offset the loss of electrical output from the The talk began with a stark acknowledgment of Fukushima nuclear power plant. Australia's abysmal track record on energy efficiency. The session ended with an informative Q&A on topics Recent analysis of the world's 25 largest energy- ranging from digitisation to the difficulties in tailoring consuming countries ranked Australia as the worst- energy efficiency messages to politicians of different developed country for energy efficiency policy and stripes. performance. AIE Perth YEPs thank Luke for his time and his insights, Luke explained that an increased focus on demand- side measures (such as energy efficiency) would help to and look forward to welcoming him again in the future. resolve key issues in our energy landscape by reducing By Jonathon Holborn, AIE Perth YEPs

28 Energy News AIE SOUTH AUSTRALIA

AIE SA Energy Awards project completed this year to power Fame in honour of her significant the Port Bonython plant in South ongoing contribution to South AIE South Australia held its annual Australia, demonstrating not just Australia’s energy sector. Since the awards dinner on 17 July 2019 with reduction in carbon emissions but 1970s Monica has worked to further over 160 energy professionals in also freeing up more gas for the the development and application of attendance, including the Hon. domestic market. renewable energy options. Dan van Holst Pellekaan, South Santos has a suite of emissions Monica graduated from the Australia’s Minister for Energy and reduction projects completed or University of Adelaide with a Mining. underway, including converting science degree majoring in physics. A great evening was had by all, oil beam pumps to solar and The 1970’s oil crisis helped her providing both AIE members and batteries, and investing $10 million determine to focus her future career guests with the opportunity to to test potential for carbon capture, on the development of renewable network with industry peers, discuss utilisation and storage. energy sources. In the early 1980s industry issues and celebrate the Monica took up an appointment Special thanks goes to Fyfe as successes of the SA energy industry AIE South Australia Award Dinner as energy research scientist at the throughout the past year. Event sponsor, Australian Gas Electricity Trust of South Australia The keynote address was given by Infrastructure Group (AGIG) as (ETSA). Achievements during this time were a major assessment of the Kevin Gallagher, CEO and Managing sponsor of the SA Young Energy state’s wind energy resources in the Director of Santos Ltd who spoke Professional Development Award, late 1980’s, enabling the large wind about the critical role that natural the South Australian government’s projects in the early 21st Century. gas is playing in the transition to a Department for Energy and Mining low carbon future – locally through as sponsor of the SA Energy Project In addition, Monica led projects to supporting variable renewables of the Year, and to Brighter as investigate the impact of energy with flexible, gas-fired power and Supporting Sponsor. Three awards efficient appliances, solar water throughout Asia where Australian were presented: heating and education on energy LNG is displacing emissions-intensive use in low income households. This coal. Hall of Fame work was undertaken jointly with Santos has been leading the way the SA Housing Trust and was the with integrating renewables into AIE South Australia branch inducted first detailed residential end-use its business with a 2.1 MW solar Monica Oliphant into their Hall of monitoring program in the state.

Left to right: Peter Cleary, Chair, AIE South Australia, Dr Monica Oliphant AO, Rowan Mackay (Energy Project of the Year), Christian Winterfield (YEP of the Year), and Dan van Holst Pellekaan MP, SA Minister for Energy and Minerals

Energy News 29 Energy Project of the Year

The SA Energy Project of the Year was awarded to Santos Limited for demonstrating outstanding energy innovation, project management and a world-leading solution through its delivery of the Solar Beam Pump. As part of Santos’ strategy to reduce its carbon footprint and prepare the business for a lower-carbon future, the Energy Solutions Team was established in 2017. This team oversaw a project to substitute and replace the energy source of 220 remote Cooper Basin beam pumps. These pumps are often used by production companies to extract oil Kevin Gallagher, CEO and Managing Director of Santos Ltd from oil wells. The Cooper Basin beam pump fleet In 2000, Monica left ETSA and development and application and consumes approximately 10,000 became an independent consultant her efforts have been an important litres of fuel per month. Powering specialising in residential energy factor in the significant increase these pumps with solar resources efficiency and renewable energy. She in the penetration of renewable will also eliminate the constant was also appointed as an Adjunct energy in Australia over the past two need for remote-area fuel trucking. Associate Research Professor at decades. Converting the pumps to solar the University of South Australia, YEP Development Award power required the design and to the board of the International delivery of a world-first installation Solar Energy Society serving as its AIE SA’s Young Energy Professional of a fully autonomous solar and President in 2008 and 2009. (YEP) Development Award was battery powered oil beam pump. In 2003, Monica was appointed to presented to Christian Winterfield. For Santos, the installation marks the a Committee to advise the Federal The award, together with the first solar and battery combination Government on policies to increase support of the Australia Gas sized for autonomous operation of the contribution of renewable Infrastructure Group, provides load, 24 hours per day in some of energy forms, particularly wind and substantial funding that enables the recipient to attend or be involved in Australia’s harshest environments. photovoltaics, to meeting electricity a globally-significant energy event. Some unique technical challenges demands in Australia. The result This year, Christian will be attending were addressed: cyclic loads, of this work was an amended the 24th World Energy Congress in increasing loads, 24 hours operation, Mandatory Renewable Energy Target Abu Dhabi. minimal interruption. Scheme which has contributed enormously to the uptake of Christian holds undergraduate The project was successfully renewable energy options in the qualifications in Mechanical delivered in less than four electricity sector. Engineering (Honours) and Arts, months, from contract award to and after joining Santos, has held commissioning and handover. It Monica has also served as a member a variety of roles, gaining broad engaged Australian companies of the SA Premier’s Round Table experience in the upstream, including AGL Energy; 5B and their on Sustainability and the Board midstream and downstream aspects patented, modular, prefabricated of Renewables SA. She received of the oil and gas industry. solar solution; Ecoult working with the Ecogen 2011 Award for ‘Most the CSIRO; MPC Kinetic; Sunstore Outstanding Contribution to the He completed a Masters of and South Australian companies GPA Clean Energy Industry’ and the World Petroleum Engineering and five Engineering and Cavpower. Renewable Energy Network Pioneer years as a reservoir engineer Award in 2012. focussed on gas field development. Following a review of the first Christian is presently leading installation, Santos was able to Monica was made an Officer of Santos’ drive to develop Australia’s secure $4 million in support from the the Order of Australia in 2015 “for first combined Carbon Capture Australian Renewable Energy Agency distinguished service to the renewable and Underground Storage (CCUS) (ARENA) to extend the deployment energy sector as a research scientist, and carbon dioxide Enhanced Oil of this technology to an additional 56 particularly through her roles in solar Recovery (EOR) project. Christian’s oil pumps in the Cooper Basin. The photovoltaics and power generation, efforts in bringing the opportunity project team expects that in the near and to national and international from concept initiation to Front future the solar and battery solution organisations”. In 2016, she was End Engineering and Design (FEED) will become standard deployment named Senior South Australian have been endorsed by the fact that when new oil wells are drilled. of the Year. Monica is rightfully Santos has committed more than recognised as a true pioneer in US$10 million in 2019 to appraise By Paul Lyford, the field of renewable energy the opportunity. AIE South Australia

30 Energy News AIE south australia

Eastern Australia's largest undeveloped and seventh-largest 2P gas reserves on uncontracted gas reserve Australia’s east coast. Leigh Creek Energy are developing a pathway to commercialisation. On 10 September 2019, Richard is geologically suitable for in situ The two options discussed are Peasgood, General Manager – gasification with the coal resource at connection to the east coast Commercial at Leigh Creek Energy the right depths in a small defined pipeline network (either into the presented to AIE South Australia on and closed basin, with no aquifers or Moomba-Adelaide pipeline or via the progress that the company is groundwater in the vicinity. new connection direct to Moomba), making at their gasification project at A pre-commercial demonstration or as feedstock to fertiliser (urea). the Leigh Creek coalfield. project was completed in the Richard expects Leigh Creek to This project is bringing about new fourth quarter of 2018 comprising finalise a commercial pathway, then opportunities for a mine that had production/injection and observation commence EIS, feasibility studies ceased operations and was no wells and a small plant. over 2020, FEED and FID in 2021 and to begin construction of the longer economic using conventional The demonstration project commercial plant in 2022. mining methods. generated over 1 million cubic feet of The project benefits from the syngas per day and was followed by More details on Leigh Creek Energy existing infrastructure that remains the upgrade of contingent resources and this project can be found at lcke. in place, including township, railway to a 2P reserve booking of 1,153 PJ. com.au and airport, and most importantly This gives Leigh Creek energy the by Paul Lyford, AIE South Australia

AIE sydney

Twenty years of generation in the NEM: insights to inform reduced output from gas and hydro the next 20 sources. Large-scale solar plants are generally distant from regional reference AIE Sydney heard from Paul 10,000 man-hours of work. It nodes leading to high transmission McArdle, CEO of Global-Roam contains a page of information loss factors impacting revenues and and Jonathon Dyson, Director of and analysis of the last 10 years economics: There appears to have Greenview Strategic Consulting on operations for each of the 329 units been a lack of awareness and focus 14 August 2019, kindly hosted by registered with AEMO as scheduled, from some solar farm proponents to HWL Ebsworth in Sydney. dispatchable generation units in the network losses and constraints, who NEM. The speakers presented key points are now lobbying the transmission from The Generator Report Card The following is a sample of operators, regulators and politicians 2018, a comprehensive review they insightful topics which were to split the NEM into sub-regions. and colleagues compiled of the discussed in the presentation. Wind and solar are also not reliably performance over the last 20 years Concentration of supply is high oppositely correlated: Analysis of of generators across the NEM. resulting in exposure to inherent the NEM dispatch data indicates The report, which is available for reliability of supply risk: 75% of that statistically, there are times purchase, covers over 50 discrete energy demand is supplied by 48 when there is very low or no wind performance metrics, with focus on units (or 14%) of the supply capacity, or solar generation across the the last 10 years as the change in the highlighting the potential reliability NEM and regions within the NEM generator mix has accelerated. of supply risk and future challenges and generators will not always be Paul provided an overview of the (and opportunity) in developing available when needed. This requires report – the objectives, how it was replacement sources as large-scale greater consideration and planning developed, themes addressed and units are retired. oversight and signals the need for how the analysis might be utilised. Coal remains the dominant generation storage and diversity of generation Jonathon presented some key points source: Over the last 10-years, coal type/source and location for future and examples of the analysis in generation output has remained installations. the report, stimulating active and relatively constant at between 75%- Capacity factors for renewable energy insightful audience engagement as 80% of the energy supply with black generation: The volume weighted he presented. coal replacing the generation from capacity factor range for wind The report is a very extensive brown coal fuelled units as those are generation is approx. 20%-40% document, compiled from publicly retired. The increase in wind output (with very few at the higher end of available information and over (to around 10%) has mostly offset the scale). As new developments

Energy News 31 are added, the capacity factor is The report is a valuable addition Ebsworth for hosting the event. increasing in South Australia and to the information base regarding Further information on the report decreasing in Victoria due to a generation and in particular, a very and is themes can be found at: aie. combination of location, network valuable aid to inform analysis and org.au/past-events-2019 constraints and type of units. consideration of development of The report can be purchased at: Larger scale does not necessarily new generation and network by wattclarity.com.au/articles/2019/08/5- represent a more economically market participants and all parties efficient project. The volume with a role to play. faqs-were-asked-about-the-generator- report-card weighted capacity factor range for AIE Sydney thanks the speakers Paul solar generation is approximately and Jonathon for their talks and also By Carleton Nothling, 20-32%. Graeme Dennis, Partner at HWL AIE Sydney Branch Committee

AIE sydney

Eastern Australia’s gas outlook with an historical context

AIE Sydney held a well-attended event on eastern Australia's gas outlook on 21 October 2019, kindly hosted by K&L Gates, Sydney. The two speakers, Stephen Kelemen and Clive Cachia addressed different aspects of the current market and took questions through their presentations, which stimulated active and insightful audience engagement. Stephen is Adjunct Professor at the Centre for Coal Seam Gas at the University of Queensland. He is also Non-Executive Director of Galilee Energy, Elixir Energy and Advent Energy, Deputy Chair, Petroleum with the NEW INDIVIDUAL & corporate MEMBERS Queensland Exploration Council and a member of Core Energy & Resources’ Technical Advisory Council. As the main speaker, Stephen addressed the history of gas development and pricing in eastern Australia and provided a 10-year outlook of the gas reserve base, gas fields in Victoria and delays by NSW in assessing development timing and pricing. Points of note included CSG development, domestic market consumers face the following: supply challenges over the next five years; • Eastern Australia used to have cheap gas ($2.00-$3.00 • The gas resource outlook published by AEMO is per gigajoule) due to large discoveries of conventional ambitious and does not give a representative picture reserves which were made in the 1960-70s when of the achievable delivery profile of reserves and gas petroleum exploration and development was actively supply to the market over that period; promoted and subsidized by the Federal government. • It is difficult to see gas prices falling below $9.00/GJ ex These were associated with oil and liquids where the producer and $11.00/GJ delivered to consumers; value of the liquids subsidized the gas price; • Whilst there are other potential options for gas • The region’s large conventional gas fields in the supply, these are a long way from being proven up Bass Strait are now almost depleted and have been and delivered and will be quite expensive. Examples replaced by Queensland coal seam gas (CSG) which include the West-East Trans-Australian gas pipeline represents approximately 70% of the gas supply in concept, the large unconventional gas potential in the today’s market and over 90% of the gas resource Northern Territory and Cooper Basin and emerging available for future development; CSG areas in Queensland; • CSG is dry gas with no supporting liquids revenue • This outlook indicates the opportunity and near-term stream. To date, the lowest-cost CSG resources have need for LNG imports which will provide gas supply been developed. As the undeveloped CSG resources but will not deliver materially lower prices. are generally less productive and more distant from existing infrastructure and the market, development The event concluded with Clive Cachia, Special Counsel at faces increasing challenge from landowners and K&L Gates, giving a short summary of the five proposed interest groups and will be more costly than existing LNG import projects proposed for eastern Australia and developments; the various issues and challenges that they face. • New gas infrastructure will be required to bring gas The presentations from this event are a valuable addition from Queensland to New South Wales by the mid- to the discussion and information base on eastern 2020s; Australian gas. Copies of the material presented can be found at: www.aie.org.au/past-events-2019 • The identified gas resources are higher cost to develop and are taking 10+ years to get to production. AIE Sydney thanks Steven and Clive for their talks and With the rapid decline of existing resources, the K&L Gates for hosting the event. moratorium on onshore fracking of unconventional By Carleton Nothling, AIE Sydney branch committee

32 Energy News AIE NATIONAL BOARD & EXECUTIVE 2020

Elected Directors

Position Name Branch Contact Term expires President Katharine McKenzie Perth [email protected] 2021 Vice President Leigh Morpeth Brisbane [email protected] 2021 Hon. Secretary Mena Gilchrist Perth [email protected] 2020 Hon. Treasurer Glen Currie Melbourne [email protected] 2022 Director Charles Rendigs Melbourne 2021 AIE sydney Director Jeremy Schultz South Australia 2019 Director Steve Blume Canberra 2020 Director Stephanie Moroz Sunshine Coast 2020 Director Kylie Wilkie Perth 2022 Director Samantha Christie Sydney 2020 Director Vacant Newcastle 2020 Other national officers AIE Secretariat The Association Specialists Sydney [email protected] AIE membership AIE Secretariat (TAS) Sydney [email protected] AIE auditor Watkins Coffee Martin NSW [email protected] AIE webmaster AIE Secretariat Sydney [email protected] Editor, AIE EnergyNews Journal (quarterly) Sally Bogle Perth [email protected] AIE e-Newsletter (monthly) AIE Secretariat (TAS) Sydney [email protected]

NEW INDIVIDUAL & corporate MEMBERS

Name Grade Branch Name Grade Branch

Joeb Northey Graduate Sydney Luigi Bonadio Member Melbourne Nicholas Gorman Student Sydney Lachlan MacLean Associate Brisbane Claire Withiel Member Melbourne Shaun Zhang Associate Brisbane Jenny Paradiso Fellow Sth Australia Odell Menon Member Melbourne Brett Smit Member Melbourne John Patitsas Fellow Melbourne Vinay Kumar Student Brisbane Ben Beattie Member Brisbane Andrew Splatt Associate Sydney Will Jacobsen Student Sydney John Blackburn Fellow Canberra Bhavisha Kallichurn Member Brisbane Dorota Bacal Student Melbourne Lio Hebert Student Perth Aurore Pont Member Melbourne Gareth Forwood Member Sydney Chris Rieniets Fellow Melbourne

Representative Company Name Branch Pippa Jefferys Aurecon Sydney Tim Anderson Nova Systems Sth Australia Linley Plowman Kleenheat Perth Mombi Sakala Kleenheat Perth Kylie Wilkie Allens Perth Dani Alexander Institute for Sustainable Futures, UTS Sydney

Photo: Khachik Simonian The AIE and journal editor wish members many happy returns of the season and an enjoyable summer break

Energy News 33 Calendar

selected Events in 2020: Australia

5-6 February: Melbourne Global Hydrogen Energy Summit

25-26 February: Sydney Large Scale Solar Conference

11-13 March: Perth Australasian Oil and Gas Exhibition & Conference (AOG 2020)

30-31 March: Melbourne The Australian Hydrogen Conference

31 March: Melbourne Wind Industry Forum

31 March – 2 April: Perth The International Microgrid Event

7-8 April: Sydney Smart Energy Conference & Exhibition: Smart Evolution

14 May: Brisbane Large-Scale Solar Forum

2-4 June: Brisbane Energy Networks 2020 Conference & Exhibition (EN2020)

14-15 July: Sydney Australian Clean Energy Summit

3 September: Adelaide Energy Storage Forum

21-22 October: Melbourne All-Energy Australia

19 November: Perth WA Clean Energy Forum

Please note that the events listed here are based on information provided by event organisers. The AIE does not necessarily endorse the views of the speakers. The events are brought to the attention of members as potentially contributing to discussion on relevant energy issues. If you know of any conferences or other major events in our region that would be of interest to AIE members and will be held in 2019, please email the date, location, title and web link to [email protected] selected Events in 2020: International

10-11 February: Singapore 15th LNG Supplies for Asian Markets (LNGA 2020)

31 March – 1 April: Lisbon, Portugal large-Scale Solar Europe (LSS Europe)

1-3 April: Palma, Spain 3rd International Conference on Solar Technologies and Hybrid Mini-Grids to improve energy access

7-8 April: Munich, Germany Hydrogen Summit 2020

20-21 April: New York, US BloombergNEF Summit

23-24 April: New York, US International Conference on Hybrid and Electric Vehicles

11-13 May: Amsterdam, Netherlands flame 2020

2-3 June: Philadelphia, US Microgrid 2020 Conference

5-9 July: Istanbul, Turkey 23rd World Hydrogen Energy Conference (WHEC2020)