Demand Management Plan
April 2021 Demand Management Plan 2021-22
Contents
Message from our Executive 3
About us 4
Introduction 4
Our network 4
Our core service area 5
Demand management 6 What is it? 6
Customers participating in our DM Program 8
Challenges and opportunities shaping our strategies and plan 9 Case study: The challenges caused by minimum demand 12
Our strategy and plan 14 Overview 14 Our principles 14
Case study: Electric vehicles - Discovering customer charging and energy use 15
Our strategies and initiatives 16
Case study: New load control tariffs deliver customer and network benefits 17
Our program 18
DM Program budget and targets for 2021-22 20 Covid-19 impacts 20 Energex forecast expenditure and targets 20 Ergon Energy Network forecast expenditure and targets 20
2 Demand Management Plan 2021-22
Message from our Executive
We are experiencing (DER) such as rooftop solar PV This Plan sets out our five-year unprecedented rates of customers and Electric Vehicles (EVs). This strategy for our DM program connecting small scale renewables will support greater DER on during this time of transformation. such as rooftop solar photovoltaic our network, new technologies Our Plan is only as strong as our (PV) systems, along with such as batteries and EVs and partnerships with our customers, large scale renewables (solar access to new markets that offer DM providers and other industry farms and wind farms) to our incentives to customers for their partners. We therefore look network. It’s not slowing down; services. Dynamic customer forward to continuing to work if anything, COVID-19 and the connections for DER will also with our existing and new conditions of the past year have support distribution networks customers during 2021-22 and only accelerated the take up of in providing safe and secure beyond; as we energise our renewables across the network. electricity supply. communities and empower our customers’ electricity usage In the past we have highlighted Demand Management (DM) is an choices and enable their ‘electric the changing load profiles. The important part of our response life’. growing levels of solar generation to transform our network, across Queensland is now particularly as the amount of ‘hollowing out’ the load during variable renewable generation, the middle of the day faster and transport electrification and we are seeing a rapid decline in climate variability increases. minimum demand during the day. Historically, most of our effort This has significant implications has been on implementing non- for the network, as it lowers network DM solutions to address Peter Price the minimum demand system- peak demand. Now DM has a Executive General Manager wide and creates local network growing role to play in flattening Engineering challenges around managing the demand curve by shifting reverse power flows and voltages, demand to fill the generation and more broadly, impacts to trough in the middle of the day, system security. while still lowering the evening peak. This shift is critical to To respond, we are transforming addressing the clear and present our network into a state-wide danger to system security intelligent network, with a focus associated with the accelerating on ensuring that our customers decreases in minimum demand. can benefit from alternative DM also complements the efficient energy solutions and other roll-out of alternative energy emerging technologies. Looking supply solutions, such as Stand forward, we are introducing active Alone Power Systems (SAPS) to connections and transitioning to customers in remote Fringe-of- dynamic customer connections Grid areas. for Distributed Energy Resources
3 Demand Management Plan 2021-22
About us Introduction Our network
We are proudly part of the Each year Energex and Ergon Energy Queensland Group, Energy Network publish a 7,570 employees a Queensland Government Demand Management Plan (DM Owned Corporation, and Plan) to engage and inform our together we strive to deliver customers, DM providers and isolated on our vision to energise other industry partners on our 33 systems Queensland communities planned DM Program for the and enable our customers’ next five years. It forms part of a ‘electric life’. Energex and suite of strategies to deliver safe, 1.7 million power poles Ergon Energy Network’s role affordable, secure and sustainable is to operate the electricity energy solutions. Consistent with network control distribution networks across our corporate purpose, the DM 3 centres Queensland. These networks Plan outlines initiatives that: 2 cover 1.7 million km across • improve and maintain safety, Queensland. Ergon Energy security and reliability – by 2.3 million connected customers Network supplies electricity coordinating network and to homes and businesses over customer resources to work a vast area covering around together 97% of the state – from coastal 35,000GWh • are customer focused – electricity delivered a year and rural centres to remote supporting and enabling communities of outback customers in their energy Queensland and the Torres choices 3,354MVA Strait. Energex’s network Total capacity of small- supplies electricity to homes • are cost efficient – working scale solar energy systems* and businesses in the South with customers, DM providers East region of the state. and other industry partners to The South East Queensland deliver cost efficient initiatives 660,870 region includes the major to manage peak and minimum customers with solar energy systems connected* urban areas of Brisbane, demand constraints and Gold Coast, Sunshine Coast, improve network utilisation to Logan, Ipswich, Redlands and keep costs down 809MVA Total large-scale1 solar Moreton Bay. • activate the market and energy systems connected* transition – by paying for DM services where they provide 5,068MW 737MW value; and responding to (5pm 3 Feb 2020) (11.30am 27 Sep 2020) regulatory and market changes Energex Energex • help achieve the Queensland network-wide network-wide peak demand# minimum demand renewable energy target – by enabling connection of distributed energy resources 2,660MW 961MW (6.30pm 16 Dec 2019) (12.30pm 23 Aug 2020) (DER); integrating renewables Ergon Energy Ergon Energy into the network and leveraging Network-wide Network-wide all market participants peak demand# minimum demand to manage the technical challenges in achieving the 7,419 Battery target Customers installations* • are fair and equitable – by unlocking the value of DM 4,492 services to achieve cost efficient Electric vehicles registered* outcomes for all, not just those with direct access to DER. 1 Large scale solar PV systems are those larger than 5MW. The DM Plan meets Energex * Figures as at January 2021. and Ergon Energy Network’s # Data for summer 2020-21 not available at regulatory requirements under time of publication. section 127C the Queensland Electricity Regulation 2006.
4 g Da an a a ga te en Da nle Ma g e ama am Ma ag Me M a ad a a e P ma n t n t Pa l M a amm nd g a a aga n a en da
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amaga e e t a e nett ane t l nde Da l ng D n e P nee t e t ld a t Ma n g Da an a a ent al e tOur core n ne a t service area a an m ga te en a t e Da nle Ma g e Our 17 service areas with 127 depots and offices ensure we are well ama am n Ma ag Me M a placed to energise communities across Queensland. ad a a e P ma en n t n t Pa l M a 1 Far North 6 Central West 10 Darling Downs 15 Brisbane South amm nd 2 Tropical Coast 7 Capricornia 11 South West 16 Ipswich Lockyer P m aa g a a aga n a en 3 Herbert 8 Bundaberg 12 Sunshine Coast 17 Gold Coast da an ama t n 4 Flinders Burnett 13 Brisbane North e a 5 Pioneer 9 Fraser Burnett 14 Brisbane Central e Ma n amaga n na M n ngt n 1 M man n n mag a n Regional network - Ergon Energy Network Ma ee a 2 Isolated supply - Ergon Energy Network e e a ea et n t e t n mant n nn a l D madgee a en e Ergon Energy Retail ll a t a n a ane t e get n South East Network - Energex al a t nda e g nett ane ent al ng am 3 amaga Depot locations e e t a e nett ane t n lle Magnet l nde Da l ng D n e me ll m e am eal en l a ee a te e P nee t e t ld a t Mt a l n m nd Ma n g enden P e ne ent al e t n ne a t a an m a 5 a t e P nna le Ma a 12 n am 4 a na Ma d e M an a en al nd a nt n le m nt l d d l a 7 6 M ddlem nt e n P m aa g la a a lt e am t n ng ea a ald ne me ald la ate an ama t n ed l e 13 lad t ne 8 ng e ed e l ela M am ale ane la all e n ale nda M a M nt nda e g n na M n ng t nn n M man e d e 1 att n 14 lde nd a ggenden e e a a n 2 a nda Ma g Ma ee a eenle g d lle M nd e a et n 9 t e t n mant n nn a l 16 15 l an l e a le lle andD a n madgee a en e ll e Pa ad e e geM g t n n ma nga na ea de e t a aman n lla ng am 3 D 17 a a 11 Dal m a ane n lle Magnet M llme an nnam lla t e ge me ll m e am eal a en l a ee a te e Mt a ltan n t e m nd g enden P e ne 10 5 a P nna le Ma a am 12 4 a na Ma d e M an a al nd a nt n le m nt l d d l a 7 6 M ddlem nt e n g la a a lt e am t n ng ea a ald ne me ald la ate ed l e 13 lad t ne 8 ng e ed e l ela M am ale ane la all e n ale nda M a M nt nda e g n n e d e att n 14 lde nd a ggenden e e a a nda Ma g eenle g d lle M nd e a 9 16 15 a le lle l an l e and an e Pa ad e M g n ma nga na ea de e t a aman n lla D 17 a a 11 Dal m a ane nnam lla t e ge M llme an a tant e 10
Figure 1: Our network and service area
5 Demand Management Plan 2021-22
Demand Management What is it? DM is part of our suite of solutions This definition recognises that DM must be deployed to match for network management DM need not be specific to the temporal (i.e. how often and which may be used instead of removing network constraints what duration) and spatial (i.e. or in conjunction with network only at times of peak demand. what level of the network and how expenditure, to ensure an Rather that network constraints many customers are affected) optimised investment outcome include a variety of technical nature of the network constraint. and ultimately savings to our issues that the network needs As more DER is connected to our customers. DM solutions are also to manage, including minimum network, the temporal and spatial known as non-network solutions, demand and associated issues nature of network constraints as they provide an alternative to with voltage, system frequency will change. As such, our DM network infrastructure solutions. and power quality management; capability continues to adapt In the Energex and Ergon Energy retirement or replacement of an to address new and emerging Network context, DM often aging asset; redundancy support network constraints; engaging involves providing incentives to during equipment failure and our customers, DM providers and our customers and DM providers managing diverse power flows other industry partners to identify to modify demand and/or and other system security issues. new value propositions. energy consumption so that we In response to the growing levels There are several types of DM: can reduce or delay network of DER on the network, our DM Demand Response (DR) that expenditure (i.e. removing or strategy considers our customers’ is used when required; energy delaying a network constraint). DER assets and the optimisation efficiency, which results in of end-to-end investment. DM can permanent reduction of demand; also be particularly valuable when and strategic load growth, which there is uncertainty in demand results in permanent increase of growth forecasts, as it does not demand, beyond ‘valley filling’ lock in long-term investment. In (see Table 1). These approaches these situations, DM can provide are implemented by customers considerable ‘option value’ and or DM providers in exchange for flexibility. financial incentives or as required by a connection standard.
6 Demand Management Plan 2021-22
Description
Demand Response (DR): Temporary modification of load or generation as required (e.g. in response to signal from network or price signal). There are different types of DR used for wholesale, emergency, network and ancillary services.
Peak shaving – reducing demand during peak period (e.g. using onsite generation or battery storage). PeakSmart air conditioning is an example of emergency DR aimed at ‘peak shaving’.
Load shifting – shifting demand outside of peak demand periods. Load control tariffs are an example of network DR aimed at ‘load shifting’. They can also be used for emergency DR. Valley filling – shifting demand into periods of low demand. Time of Use (TOU) tariffs and load control tariffs are examples of network and wholesale DR aimed at ‘valley filling’.
Flexible load and generation – modifying load and generation according to DR signals, published technical constraint envelopes and energy market prices (e.g. batteries could be charged during times of low demand). The Dynamic Customer Connection consultation2, Dynamic Operating Envelopes (DOE), Vehicle to Grid (V2G) trials and AEMO’s recent Wholesale Demand Response Mechanism consultation3 are potential future examples of wholesale and/or network DR platforms, strategies and approach.
Energy Efficiency: Permanent reduction of demand, at peak times and non-peak times.
Energy efficiency – using less electricity to perform the same task.
Strategic flexible load growth: permanent increase of demand (where network capacity allows), beyond ‘valley filling’.
Strategic flexible load growth – encouraging new loads (where network capacity allows), beyond valley filling. For example, growth in EVs and other modes of electric transport and electrification of industrial processes.
Table 1: DM Approaches Typical residential customer load profile Load or generation after demand management measure Typical solar generation profile
2 See here for Enabling Dynamic Customer Connections for DER, Consultation Paper, 23 December 2020. 3 See here for AEMO Wholesale demand response mechanism consultation.
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Customers participating in our DM program
The merger of Energex and Ergon Energex Ergon Energy Number of Customers Energy Network has strengthened network area network area our position as the largest DM Customers with load control tariff# 681,721 399,006 program in Australia, with over a # million customers participating. Customers with PeakSmart air conditioners 83,851 5,485 Around half (45% in South East Customers who have reduced demand in Target areas* 549 260 Queensland and 53% in regional Queensland) of our customers # As at 31 March 2021 and reported to AEMO *Includes contracted demand response (non-network generation contracts) have a load control tariff and over 130,000 customers have installed a PeakSmart air conditioner(s). See Figure 2.
Premises with controlled load Premises with PeakSmart air conditioning Premises with reduced demand in Target Areas
Figure 2: Energex and Ergon Energy Network - Demand Management in Queensland
8 Challenges and opportunities shaping our strategies and plan
Our DM Plan has been developed to address a range of challenges, while harnessing emerging opportunities. For further information refer to our latest Distribution Annual Planning Reports (DAPR).4
Energy affordability Decreasing minimum Demand outlook – and value – affordability demand – trend localised demand growth remains a core concern towards a network with driven by residential for customers. high penetration of population growth. • Electricity affordability remains renewable, decentralised, • Peak demand continues to a concern for many customers asynchronous generation increase, with record network- – both from a cost of living and has potential to cause wide peak demand days a business competitiveness network reliability and recorded in 20198 and 20209 perspective. Electricity bills (Figure 1). Some areas of remain a top household cost security issues. Queensland are continuing to of living concern for customers • The Queensland Government see localised spikes in growth, with that concern second to has set a target to achieve 50% for example, where new health/medical costs overall. renewable energy by 2030. property developments are Over half – 51% – of regional • Queensland has the highest being established. Queenslanders have indicated penetration of solar PV systems • Areas of the network with they have moderate-high bill on detached houses (Figure increasing peak demand, may concern with 44% of customers 1), not only in Australia but create the need for additional in the South East also indicating compared with any country6. investment as Energex and 5 moderate-high bill concern . Solar installations Ergon Energy Network must • continue to trend upwards - maintain enough capacity and including residential rooftop voltage stability to supply every systems, larger systems on home and business on the day commercial and industrial of the year when electricity sectors and solar farms. demand is at its maximum. This growth in PV systems is leading to an increasing number of distribution feeders experiencing reverse power flows during the middle of the day. Record network-wide minimum demand days were recorded in 20207 (Figure 1).
4 Energex DAPR see here and for Ergon Energy Network DAPR see here 5 Queensland Household Energy Survey 2020 6 Ergon Energy Network, Distribution Annual Planning Report 2020-21 to 2024-25 (pp131) 7 Energex and Ergon Energy networks 8 Ergon Energy Network 9 Energex network
9 Demand Management Plan 2021-22
Growing number of Stand Alone Power Customer uptake of Electric Vehicles (EVs) Systems (SAPS) costs Internet of Things (IoT) could increase evening are reducing, making energy management peak demand. them increasingly cost devices (e.g. Home • To date, EV uptake has been competitive with network Energy Management modest (Figure 1). Transport delivered electricity Systems (HEMS)). modes such as fleet vehicles supply for Fringe-of-Grid • Advancements in the IoT and public transport are being customers. will provide opportunities increasingly electrified. • Many of our customers in for energy management. • If EV charging is unmanaged, remote areas of Queensland Machine learning, automated the additional load on the (Fringe-of-Grid) are serviced decision making and seamless network is likely to coincide by very long lengths of communication between with the existing evening peak. network. Around 4% of Ergon people, devices and data • Vehicle to Grid (V2G) charging Energy Network’s customers will enable remote control of technology, while at an early are provided electricity by appliances, and for devices to stage of development, is 65,000km of line. In some automatically manage power to expected to provide a range of cases, SAPS such as renewable different appliances/devices to energy services including DR in generation and energy storage optimise electricity usage. the future. can provide a cost-efficient • Currently there is moderate alternative to network for our interest in HEMS services, with Increasing climate Fringe-of-Grid customers. We the focus on receiving personal variability could increase continue to support legislation recommendations on how to frequency of heat waves, that facilitates both third save11. bushfires and other party-led and network-led SAPS options so that improved Introduction of innovative severe weather events. cost-to-serve outcomes can be tariffs (e.g. time varying • A changing climate is leading to achieved in our Fringe-of-Grid and additional load changes in the frequency and locations. intensity of extreme weather control tariffs). and climate events, including Customer uptake of • New network tariff structures extreme temperatures, greater batteries. have been released as part variations in wet and dry of the transition towards an weather patterns (e.g. flooding, • To date, uptake of residential intelligent network. Three drought), bush fires, cyclones, battery energy storage systems new load control tariffs for storms and storm surges, as has been low (Figure 1). The business have been introduced, well as changing oceans and average capacity of a home in addition to the two existing sea levels. This necessitates battery storage system is ones for residential. Recent increasing network adaption around 10kWh. tariff changes have also and resilience (e.g. successive • Investment in batteries is resulted in 12 Time of Use hot days causing peak predicted to grow as their (TOU) tariffs being available demand), while also ensuring costs decrease. Around 29% to business and residential we can respond quickly and of Queensland households customers in Queensland. safely during and after extreme stated their intention to install a weather events. battery in their homes over the next 10 years10. • Batteries for network use (grid-scale) are currently being investigated to address minimum demand and for use in Fringe-of-Grid and isolated networks areas.
10 Queensland Household Energy Survey 2020 11 Queensland Household Energy Survey 2020
10 Customer uptake of advanced digital meters (ADMs). • ADMs are progressively being rolled out for electricity customers in Queensland. ADMs are capable of two-way communication, where they can send and receive data. They provide opportunities for both increasing network visibility enabling DR from downstream appliances.
Development and implementation of Future Grid (network) capabilities that complement existing load control assets and systems (e.g. Audio Frequency Load Control (AFLC)). • Future grid (network) capabilities are being developed that provide visibility, constraint identification and definition, and communication with external systems. This will enable networks to interact with cloud-based DR and other network services. • The capabilities will complement existing load control assets and systems. Energex and Ergon Energy Network maintain AFLC equipment across the State that facilitates a large footprint of load control tariffs and services being available for network and customer use. We are continuing to monitor and manage these assets to ensure that they both continue to provide value.
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CASE STUDY The challenges caused by minimum demand
The speed at which customers Maximum operational demand We have been implementing are adopting rooftop PV, and has shifted to later in the day solutions in response to this larger-scale solar systems are by an hour or two, when solar challenge and are building on these connecting to our networks is PV contribution is falling, but by exploring additional initiatives unprecedented. When customers’ temperatures remain high. to ensure positive outcomes for energy needs, particularly during Minimum system demand is Queensland customers. We are daylight hours, are being met by increasingly posing a risk to system actively pursuing innovative ways their own DER, such as solar PV, security, as it will be difficult with to address the challenges of this results in low demand for the current mix of generation to integrating DER to our networks. energy from the network. At the maintain stable operations through same time, some solar PV systems the middle of the day and ramp up are exporting surplus energy scheduled generation to meet the 12 Refer here to 2020 Electricity Statement of Opportunities published by AEMO, into the network. Consequently, evening peak. August 2020 we are seeing lower operational This is a national issue which is minimum demand and greater challenging the business models volumes of reverse power flows. and operational frameworks of Minimum demand is the lowest our distribution networks. In the level of demand from the network recent 2020 Electricity Statement at any given time. 2020 saw record of Opportunities published by minimum network-wide demands the Australian Energy Market with year-on-year reductions, Operator (AEMO)12, distribution followed months after by record networks were urged to commence peak demands. This is driving development of programs to increased rates of reverse flows, implement emergency PV shedding which will rival peak demand flows capabilities, as a ‘backstop’ system in coming years in some places. security measure. Across the Energex and Ergon Energy Network, around 20% of medium voltage (MV) distribution feeders are experiencing reverse power flows.
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Solar PV Capacity Minimum Demand
1600 2020-05-03 11:30, 2500 953 MW, 1400 27% 2000 1200 2019-05-06 11:30, 1000 1309 MW, 1500 12% 800
600 2020-09-27 11:30, 1000 Load (MW) 737 MW, 400 23% 500 PV Capacity (MW) 200
0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Year
Figure 3: Energex historical minimum demand and solar PV capacity
Solar PV Capacity Minimum Demand 2020-05-03 13:00, 1400 1074 MW, 2000 1800 1200 1600 1000 1400 1200 800 1000 600 2020-08-23 12:30, 800 Load (MW) 400 961 MW, 600
10% PV Capacity (MW) 400 200 200 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Year
Figure 4: Ergon Energy Network historical minimum demand and solar PV capacity
FY2013 FY2020 FY2013 FY2020 FY2021 6000 2020-02-03 17:00, 5,068 MW
5000
4000 2012-12-03 16:30, 4,450 MW 3000 Load (MW) 2000 2020-05-03 11:30, 953 MW
1000 2013-03-31 03:30, 1,499 MW 2020-09-27 11:30, 737 MW 0 11:30:00 11:00:00 17:30:00 12:30:00 21:30:00 15:30:00 13:30:00 18:30:00 19:30:00 16:30:00 14:30:00 17:00:00 12:00:00 21:00:00 15:00:00 10:30:00 01:30:00 13:00:00 18:00:00 16:00:00 19:00:00 14:00:00 01:00:00 10:00:00 22:30:00 23:30:00 22:00:00 07:30:00 02:30:00 20:30:00 23:00:00 05:30:00 03:30:00 08:30:00 06:30:00 09:30:00 04:30:00 07:00:00 02:00:00 20:00:00 05:00:00 00:30:00 03:00:00 08:00:00 06:00:00 09:00:00 04:00:00 00:00:00 Time
Figure 5: Energex historical maximum and minimum demand daily profile
FY2013 FY2020 FY2013 FY2020 FY2021 3000 2012-12-17 15:30, 2019-12-16 18:30, 2,428 MW 2,660 MW 1500
2000
1500
Load (MW) 1000
2020-05-03 13:00, 500 2012-12-25 04:00, 1,074 MW 990 MW 2020-08-23 12:30, 961 MW
0 11:30:00 11:00:00 17:30:00 12:30:00 21:30:00 15:30:00 13:30:00 18:30:00 19:30:00 16:30:00 14:30:00 17:00:00 12:00:00 21:00:00 15:00:00 10:30:00 01:30:00 13:00:00 18:00:00 16:00:00 19:00:00 14:00:00 01:00:00 10:00:00 22:30:00 23:30:00 22:00:00 07:30:00 02:30:00 20:30:00 23:00:00 05:30:00 03:30:00 08:30:00 06:30:00 09:30:00 04:30:00 07:00:00 02:00:00 20:00:00 05:00:00 00:30:00 03:00:00 08:00:00 06:00:00 09:00:00 04:00:00 00:00:00 Time
Figure 6: Ergon Energy Network historical maximum and minimum demand daily profile
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Our Strategy and Plan Overview Our principles
The DM Plan for 2021-22 sets out Our six guiding principles, how we will continue to work that underpin the DM Plan, are with our customers, DM providers based on the Energy Network and other industry partners over Australia’s balanced scorecard the coming year. Our strategy is in the Electricity Network ultimately about reducing network Transformation Roadmap costs through implementing (ENTR)13. These principles have effective and efficient DM. We will been used to prioritise our build on our existing initiatives initiatives and activities. See and deliver on our goal of Figure 3. providing a secure and reliable network. We will continue to listen 13 to our customers, DM providers https://www.energynetworks.com. au/projects/electricity-network- and other industry partners and transformation-roadmap/ continuously strive to innovate to have a responsive DM Program.
e t Are customer efficient – working focused – supporting with customers, DM and enabling providers and industry customers in their partners to deliver cost Help achieve energy choices efficient initiatives to the Queensland manage peak and minimum renewable energy target – demand constraints and by enabling connection of improve network DER, integrating renewables utilisation to keep into the network and costs down leveraging all market participants to manage Activate the technical challenges the market and in achieving the transition – by paying target for DM services where they provide value and responding to LOWER BILLS FOR regulatory and VAL ED SERVICES market changes
CLEANTRANSITION ENER Y
C STOMER C OICE AND CONTROL SAFE RELIABLE
AND SEC RE
FAIRNESSINCENTIVES AND
Fair and Improve and equitable - by maintain safety, unlocking the value security and reliability of DM services to – by coordinating achieve cost efficient network and customer outcomes for all, not resources to work just those with together direct access to DER
Figure 3: Our principles
14 Demand Management Plan 2021-22
CASE STUDY Electric Vehicles (EVs): Discovering customer charging and energy use behaviours
In May 2020, we launched Valuable insights gained to date, • Not all participants fully the Electric Vehicles (EV) include: charge their vehicles. In fact, SmartCharge program funded • participants charge their EVs on in one month, 30% of all EV by the Demand Management average around 8.4kWh per day, participants did not charge Innovation Allowance Mechanism which is approximately 45% of beyond 90%. This suggests EV (DMIAM). This program researches average current daily household owners are mindful of protecting potential impacts associated with usage their battery life as much as EVs charging on the network possible • the average distance travelled and aims to provide a better per vehicle is approximately • Apart from overnight charging, understanding of EV owners’ 37km per day (noting there are there appears to be plenty of experiences, how EV owners use some extensive travellers in the EV owners charging across the their vehicle and their approach to program) middle of the day. Given a large ‘refuelling’ with electricity. percentage of participants have • not all users charge their solar PV, this suggests they The six-month recruitment EV’s regularly. From a load- are taking advantage of using phase of the program has been management perspective, it solar to charge their vehicle. As completed with 197 EV owners will be challenging to predict further data is collected, it will now participating (80% from EV charging times. It is also be clearer if working from home South East Queensland and expected that charging arrangements due to COVID-19 20% from regional Queensland). behaviour will change with time have influenced charging Around 80% of participants have as familiarity and confidence behaviour. rooftop solar PV and almost 20% of driving range increases and have battery storage at home. The changes in charger capacity Additional qualitative research participants include EV owners occur during the EV SmartCharge who live in apartment buildings; • most participants are achieving program will add detail to the have more than one EV at their over 4km from each kWh charging data and will allow us to address; and those who use their consumed (not including energy better forecast demand for EVs vehicle for commercial use. from regenerative braking) across the electricity network. • around 60% of the EV charging is at home and 40% away from home, which includes public charging stations
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Our strategies and initiatives
Our Program Customer Outcomes Strategy DM Initiatives – (2025)14 what we will do
Ensure efficient investment decision making Broad Based Downward pressure on network prices for We will continue to engage with customers and DM providers to seek DM Targeted customers, while supporting solutions to provide cost-effective alternatives to network options. choice as volumes of This approach will enable us to leverage investment across the electricity DER and EVs continue to supply chain and deliver efficient, well planned network expenditure and increase. apply downward pressure to network prices in the longer term.
Active customer response enablers DM Development Increased opportunity for customers to be rewarded We will maintain direct control of customer loads using our existing Audio for use of their DER to Frequency Load Control (AFLC) capability. We will complement this support the network, either capability, where cost efficient, by procuring and dispatching DR. directly or through an The procurement and dispatch of DR will require investment in intelligent aggregator. network technologies and digital platforms. This will be implemented as Best practice DER part of our broader ‘Intelligent Grid Enablement’ investment. connection standards enable This enhanced capability will reduce network augmentation requirements greater customer choice and and increase DER hosting capacity. balance cost and risk13.
Incentivising customer efficiency Broad Based Local DM programs and tariffs give customers We will continue to provide incentives to customers and DM providers to Targeted incentives for more efficient provide DM solutions as part of our approach for delivering efficient non network usage. network options to defer, avoid or complement network investment. Customer experience is In the medium term, ’smart’ DER (e.g. demand responsive batteries or improved through online EVs) are expected to provide an increasing proportion of DM solutions, interactions. either directly or via DR aggregators.
Manage two-way energy flows and minimum demand DM Development Increased DER hosting capacity while maintaining We will trial and test DM solutions to increase DER hosting capacity while reliability and power quality maintaining reliability and power quality performance at statutory levels. performance at current This is in line with our customer expectations and the Queensland statutory levels. Government target of achieving 50% renewable energy by 2030.
Transforming supply at the Fringe-of-Grid DM Development Communities benefit from SAPS/microgrid conversions We will continue to look for opportunities for DM to reduce the cost of in remote Queensland. electricity supply in remote areas. DM can be used to reduce the size and cost of customer DER and SAPS and form part of an integrated, cost-effective alternative to traditional network solutions.
Support our Program by investment in innovation Demand Learnings from trials and Management projects are implemented We will continue to undertake innovative trials and projects to test and Innovation to deliver contemporary validate DM solutions. These trials will be supported by funding available Allowance and cost-effective network under DMIAM and will be targeted to accelerate future DM capabilities. Mechanism services to customers. Refer (DMIAM) to Energex DMIAM report here16 and Ergon DMIAM report here17.
14 These customer outcomes are from the Our Future Grid Roadmap (our internal overarching strategy). 15 See our recent consultation paper here on Enabling Dynamic Customer Connections for DER, December 2020 16 https://www.energex.com.au/__data/assets/pdf_file/0008/817460/Demand-Management-Innovation-Allowance-annual-report-2019-20.pdf 17 https://www.ergon.com.au/__data/assets/pdf_file/0006/817629/Demand-Management-Innovation-Allowance-Report-2019-20.pdf
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CASE STUDY New load control tariffs deliver customer and network benefits
Ergon Energy Network has on those findings Ergon Energy Dale Hollis, Bundaberg Regional been working with industry Network developed three new Irrigators Group said… “many of representatives to explore load control tariffs – small primary our members worked at length alternative tariff options that load control and large primary with EQL in developing and reduce electricity costs and and large secondary load control trialling T33 as a standalone support tariff transition from tariffs, which gained regulatory dynamic load control tariff for obsolete tariffs. Commencing approval from July 2020. irrigation pumps. With support in 2018, with funding from the from EQL, the Australian Energy These new load control tariffs Queensland Government, and in Regulator, Queensland Farmers will provide further loads under partnership with Ergon Energy Federation and customers, we saw control to assist us in managing Retail, Ergon Energy Network the introduction of additional new our network. This is particularly implemented several trials with opt-in retail dynamic controlled useful in areas with high numbers the farming sector to evaluate if load tariffs for 2020-21. This has of non-domestic customers irrigators could operate under load been a win-win outcome that where there has been low take- control tariffs. recognises the water energy up of load control tariffs. Small nexus.” As load control tariffs have and large business customers predominantly been utilised by now have an extra tariff option residential customers connecting to consider, providing greater appliances like water heaters, choice and control. For a typical pool pumps and air conditioners, small customer using around a further aim of the trials was 50,000kWh per year, who has to understand any technical operations that are suitable to issues that may be encountered move to a load control tariff, this when connecting much larger, could result in savings of up to non-residential equipment to $3,500 per year. interruptible tariffs.
The trials proved that load control tariffs could be used by non- domestic customers for operations that were compatible with being interrupted temporarily. Based
17 Demand Management Plan 2021-22
Our program
DM Initiative 2021-22 2021-22 Focus areas 2021-26
Initiative: Broad Based
This initiative is available to residential and small Existing • Continue to reduce costs of delivery Continue business customers across the whole network. • Continue to align Ergon and Energex programs It delivers direct control of loads during periods of extreme demand or emergency response, • Enhance customer and community experience preventing area problems and network outages. through improvements to incentive process • Continue to engage with installers to promote Incentives are provided to customers who enrol the PeakSmart air conditioning program and load in the PeakSmart air conditioning program or control tariffs. connect their appliances to load control tariffs. Incentives are also given to industry partners who install PeakSmart enabled air conditioners.
Initiative: Targeted
This initiative is available to customers and DM Existing • Increase our already substantial market Continue providers who can deliver DM solutions in specific engagement with customers and DM providers, so areas of the network identified as having future that more DM solutions are put forward to address network constraints. network constraints20. Market engagement is undertaken to seek DM solutions from customers and DM providers. Incentives are provided to customers or DM providers to provide DM solutions. Refer here18 for Energex and here19 for Ergon Energy for more information.
18 https://www.energex.com.au/home/control-your-energy/cashback-rewards-program/cashback-rewards-for-business/eligible-areas 19 https://www.ergon.com.au/network/manage-your-energy/reward-programs/cashback-rewards 20 Our Demand Side Engagement Strategy and Register are available for Energex here and Ergon Energy Network here
18 Demand Management Plan 2021-22
DM Initiative 2021-22 2021-22 Focus areas 2021-26
Initiative: DM Development
This initiative drives Existing Minimum Demand Continue continuous improvement • Review DM solutions to address minimum demand including: enabling direct of existing initiatives control of rooftop solar; moving additional hot water heating into the middle and enabling future DM of the day using existing load control system (LCS); encouraging customers capability. to shift more energy use to the middle of the day and informing households and businesses on the benefits of installing batteries or utilising load control tariffs for EV charging. • Undertake survey of PV installers and customers to better understand installer advice and customer views on maximising use of solar generation. Tariffs • Support customer connection to new load control tariffs for more mutually beneficial customer and network outcomes. Fringe-of-Grid • Support development of a tool to identify high cost to serve locations where alternative supply solutions may be cost effective • Investigate DM opportunities for Fringe-of-Grid customers. Intelligent Grid Enablement • Oversee implementation of Load Control Strategy as part of broader future network investment. • Support development of Low Voltage Distributed Energy Resource Management System (LVDERMS) and other related systems to orchestrate DR. • Support finalisation of AS/NZS 4755.2. This Standard provides framework for DR from customer appliances (including air conditioners, EVs, hot water systems and pool pumps). Electric Vehicles • Undertake engagement with customers and industry and analyse EV charging data to encourage network friendly charging21. • Promote to customers and key industry channels the optimum charging for customer and network outcomes that avoids contributing to network constraints. Smart developments • Partner with channels to market for DR outcomes in greenfield developments (including multi-unit dwellings).
Initiative: Demand Management Innovation Allowance Mechanism (DMIAM)
The initiative supports Existing Tariffs Continue future energy choices • Implement capacity tariff trial. and DM capabilities that reduce long term Intelligent Grid Operations network costs. • Trial Direct Load Control (DLC) and aggregated DR services via third parties (eg. Retailers, HEMs providers). A suite of innovative trials and projects to • Increase network hosting capacity of DER through improved network test and validate DM visibility and dynamic operating envelopes. products and processes Electric Vehicles are funded via DMIAM. • Gather data on actual electric vehicle customer charging and energy use Every year progress • Exploring feasibility of a Vehicle to Grid (V2G) functionality trial. on DMIAM projects are Fringe-of-Grid published, refer to our annual DMIAM reports • SAPS customer pilots (Energex22/Ergon Energy • Partnering with customers to optimise DER in Fringe-of-Grid areas. Network23). Commercial and industrial DR • Trial DR from industrial customers and water/sewerage utilities in rural and remote areas. • Trial DR on commercial air conditioning plant (thermal battery) in urban areas
21 For more information see here for our Network Electric Vehicles Tactical Plan 22 https://www.energex.com.au/__data/assets/pdf_file/0008/817460/Demand-Management-Innovation-Allowance-annual-report-2019-20.pdf 23 https://www.ergon.com.au/__data/assets/pdf_file/0006/817629/Demand-Management-Innovation-Allowance-Report-2019-20.pdf
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DM Program budget and targets for 2021-22
COVID-19 impacts
Slower economic conditions have seen an observable flattening of the uptake of the Broad Based Initiative during 2020-21 across Queensland. Given this and uncertainty around future impacts of COVID-19, a more conservative approach has been taken towards target setting for 2021-22.
Energex forecast expenditure and targets
The forecast expenditure to Operating Capital Total Demand implement Energex’s DM Program Initiative Expenditure Expenditure Expenditure Management $/kVA for 2021-22 is estimated at $5.69 ($,000) ($,000) ($,000) (MVA) million (Table 3). The table also Broad Based 3,296 - 3,296 13.5 244 provides the breakdown of performance targets for each Targeted 1,144 - 1,144 14.4 79 initiative. Future year MVA DM demand reductions may also 1,249 - 1,249 n/a n/a change year to year dependent Development Total for on program focus and customer 5,689 - 5,689 27.9 n/a uptake of new technologies. DM Program DMIAM 1,100 - 1,100 n/a n/a
Table 3: Energex direct costs (excludes overheads)
Ergon Energy Network forecast expenditure and targets
The forecast expenditure Operating Capital Total Demand to implement Ergon Energy Initiative Expenditure Expenditure Expenditure Management $/kVA Network’s DM Program for 2021- ($,000) ($,000) ($,000) (MVA) 22 is estimated at $4.51 million Broad Based 573 - 573 2.0 283 (Table 4). The table also provides the breakdown of performance Targeted 2,947 - 2,947 30.2 98 targets for each initiative. Future DM year MVA demand reductions 989 - 989 n/a n/a may also change year to year Development Total for dependent on program focus 4,510 - 4,510 32.2 n/a and customer uptake of new DM Program technologies. DMIAM 1,100 - 1,100 n/a n/a
Table 4: Ergon Energy direct costs (excludes overheads)
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21 Brisbane QLD 4001 GPO Box1461 Energex Limited Townsville QLD4810 PO Box1090 Ergon Energy energex.com.au ergon.com.au
2-21-0196