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INTEGRATING RENEWABLES INTO the GRID “STOCKTAKE” PROJECT This Is the Second Iteration of the Integrating Renewables Into the Grid Stocktake Project

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INTEGRATING RENEWABLES INTO the GRID “STOCKTAKE” PROJECT This Is the Second Iteration of the Integrating Renewables Into the Grid Stocktake Project UPDATE DECEMBER 2015 INTEGRATING RENEWABLES INTO THE GRID “STOCKTAKE” PROJECT This is the second iteration of the Integrating Renewables into the Grid Stocktake Project Revision No Approved By Date Amendment 0 Stuart Johnston, Executive 30/09/2014 New Document produced by MHC Director, Assets and Network Transformation 1 Stuart Johnston, Executive 30/10/2015 The following amendments have been made to this document: Director, Assets and » Executive Summary Network Transformation » Background to the Project » All Charts and Tables updated to reflect refresh » Entire document (excluding reference to International projects) amended to reflect refresh 2 EXECUTIVE SUMMARY 2 1. GUIDE TO THE REPORT 4 2. ABOUT THE “STOCKTAKE” 5 1.1 BACKGROUND TO THE “STOCKTAKE” 5 1.2 PURPOSE OF THE “STOCKTAKE” 5 1.3 REFRESH 5 1.4 SCOPE OF THE “STOCKTAKE” 6 1.5 ASSESSMENTS OF RELEVANCE 7 3. OVERVIEW OF INTEGRATION PROJECTS 8 4. ANALYSIS OF PROJECTS 11 4.1 ADDRESSING THE OBJECTIVES 11 4.2 APPROACHES TAKEN TO ADDRESS OBJECTIVES 17 4.3 RESULTS REPORTED BY PROJECTS 19 4.4 LIMITATIONS TO TRANSFERABILITY 21 4.5 FUTURE PLANS 22 5 TOP FIVE AUSTRALIAN PROJECTS 23 CONTENTS 5.1 PROJECT 196: KING ISLAND RENEWABLE ENERGY INTEGRATION PROJECT (HYDRO TASMANIA) 23 5.2 PROJECT 316: PRIME PLC EVALUATION (ENERGEX) 23 5.3 PROJECT 245: FUTURE GRID FORUM (CSIRO) 23 5.4 PROJECT 186: SGSC: SMART GRID, SMART CITY PROJECT (AUSGRID) 24 5.5 PROJECT 265: PLANNING FUTURE ENERGY GRIDS: RENEWABLES (QUT) 24 CONCLUSIONS 25 APPENDICES - HOW THE “STOCKTAKE” WAS UNDERTAKEN 26 1 EXECUTIVE SUMMARY In 2014, the Australian Renewable Energy ENA has subsequently completed the first refresh of the Agency (ARENA) commissioned a piece “Stocktake” database; engaging with both new and existing industry stakeholders to add new projects and update of work, called the “Stocktake” project to existing projects. Industry stakeholders included; network develop a central repository of all projects operators, industry associations, governments, technology completed, underway or in planning in proponents, electricity retailers, and universities and research institutions. relation to the integration of renewable energy sources into distribution The first update included the addition of fifteen (15) new networks. Australian projects and the update of twenty five (25) existing projects already in the database. It should be noted however that the first refresh (completed in October The resulting “Stocktake” collated and published information 2015) only included the addition of domestic projects. on various trials and studies on integrating renewables into the grid that have been undertaken around Australia, The “Stocktake” database now includes a total of 208 as well as a number of relevant international projects. projects: 131 from Australia, with 77 from overseas. The “Stocktake” has also resulted in bringing together the existing knowledge, experience, gaps and issues on All projects contained within the database have been the integration of renewables into the grid into a single assessed against each of the defined objectives outlined repository. The original “Stocktake” and its subsequent in Table 1. This evaluation was undertaken in accordance publication and public release, was completed via the with the assessment methodology previously established Energy Networks Association’s (ENA) website, in when the database was initially developed by Marchment December 2014. Hill Consulting (MHC). The assessment was informed by a questionnaire completed by the project research To ensure that this important resource remains relevant proponent and with the assessment undertaken by the and continues to evolve and grow to provide the industry ENA. with a lasting, relevant and readily accessible knowledge source, ARENA engaged ENA to publically host, update and In order to be included in the ”Stocktake” database, manage the “Stocktake” database on an ongoing basis. projects must address or inform one or more of fourteen defined objectives relating to issues with the integration of renewable energy resources within the grid: FIGURE 1 PROJECTS IN THE “STOCKTAKE”: COUNTRY OF ORIGIN United Kingdom 6 United Sweden 6 South Korea 1 States 17 Serbia 1 Spain 5 Portugal 1 Netherlands 1 Japan 5 Italy 5 Ireland 1 India 1 Greece 1 Germany 7 France 3 Australia 131 Finland 2 Denmark 2 China 8 Brazil 1 Belgium 2 Austria 1 Note: International projects have not been updated since 2014. The next stocktake refresh is planned for completion in October 2016. 2 TABLE 1 DEFINED OBJECTIVES THAT All projects included in the “Stocktake” database have PROJECTS MUST ADDRESS OR addressed at a minimum one of the objectives outlined INFORM TO BE INCLUDED IN THE above in a clear and compelling manner. DATABASE The objectives most commonly addressed by projects included in the database are: ECONOMIC / COMMERCIAL OBJECTIVES » Objectives 6 regarding cost efficiency; 1. Measure or quantify the benefits and costs of » Objective 3 regarding business models; and renewable energy » Objective 9 regarding network security. 2. Support the transition to an alternative network pricing approach The objective that is least addressed by projects included 3. Create new business models to cater to the in the database is Objective 13 relating to the storing and shift to a network with high levels of distributed organising information on customer renewable energy energy resources. deployments 4. Inform the regulatory environment for Australian projects that addressed Economic / Commercial renewable energy objectives have been assessed as being marginally higher 5. Engage customers to build their and the in relevance in an Australian context compared to the industry’s understanding of distributed energy international projects that addressed issues in that area,, resources with many of these projects referring to the differing regulatory arrangements, economic conditions and 6. Make the process of integrating renewable industry structures that exist around the world. In respect energy into the grid more cost-efficient to projects that addressed one or more of the technical 7. Improve internal practices and processes objectives, the Australian and international projects were relating to the acceptance of distributed energy found to have a similar level of relevance for the Australia. resources on the network “Stocktake” This report, analyses the “Stocktake” content for how frequently projects of each kind appear, what results they TECHNICAL OBJECTIVES encountered, how relevant they are to other entities in 8. Establish control over, or otherwise influence, Australia, and what limitations exist to disseminating their intermittent generation sources lessons. With only 15 new projects added to the “Stocktake” database, only minor changes to the overall results or 9. Strengthen the network to manage higher trends have occurred compared to the original published renewable energy penetration database. 10. Smooth out intermittent generation output 11. Alter local load profile to match a desired level 12. Use distributed energy solutions to address network and system constraints 13. Store and organise information on customer renewable energy deployments. 14. Improve techniques for forecasting renewable energy output INTEGRATING RENEWABLES INTO THE GRID STOCKTAKE PROJECT STOCKTAKE GRID THE INTO RENEWABLES INTEGRATING ENA ENA 3 1. GUIDE TO THE REPORT SECTION 1 Describes the background and purpose for the “Stocktake” and the first refresh, and explains the essentials of how projects were assessed. SECTION 2 Gives a broad overview of the projects that comprise this “Stocktake”: where they came from, who led their implementation, and how they were funded. SECTION 3 Analyses how frequently projects types appeared, what results were found, their relevance to other entities in Australia, and what limitations to disseminating their lessons were found. SECTION 4 Identifies the top Australian projects. 4 2. ABOUT THE “STOCKTAKE” 2.1 BACKGROUND TO THE “STOCKTAKE” 2.3 REFRESH Through its role in supporting the development and The first refresh of the “Stocktake” database by ENA involved deployment of renewable energy technologies across identifying and adding new projects on the integration Australia, ARENA has recognised that the integration of of renewables into distribution networks in Australia that renewable energy generation in distribution networks is had either been conceived and/or instigated after the both ‘a major challenge and opportunity for growth in the database was first published in September 2014, or were renewable energy sector’. The increased penetration of missed in the first project collection processor updating distributed generation technologies, however, does come existing projects. It also included the updating of all with its challenges and risks for both networks and owners projects currently held in “Stocktake” database whose status and operators of distributed energy resources. had changed since publication (i.e. projects underway at the time of the initial survey which have now delivered ARENA therefore decided to develop a central repository preliminary results or have been completed). This of all projects completed, underway or in planning included contacting all existing project contributors for relating to the integration of renewable energy sources the existing database as well as identifying and contacting into distribution networks to assist in the facilitation of new contributors from across the industry who have not knowledge sharing across the industry
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