Can we find value for both customers and the network in sharing locally generated energy and thus accelerate a transition to 100% renewables? Bruce Thompson and Paul Murfitt discuss the potential in microgrids, virtual power plants and more.
The transformation of the electricity network is certainly now upon us. Years of environmental advocacy, rapid technology advances and shifts in consumer demand are driving an unprecedented shake up of our century-old supply network. With this change come opportunities (and some risks) to harness the value of renewable energy across the grid as we drive towards zero emissions.
Traditionally, Australia’s electricity networks were largely built and controlled by state governments, and operated as central power supply systems managed with two policy imperatives in mind: security of supply and cost-effectiveness. The much-heralded disruption is turning this system upside down, bringing technical and financial challenges along with opportunities.
The big shift to date has been ‘behind the meter’, where there is a clear case for householders and businesses to invest in solar PV to avoid the cost of conventional energy supply. Yet establishing value ‘in front of the meter’—sharing your locally generated energy across the grid—has so far been fraught.
With the tapering off of feed-in-tariffs, owners of solar have been frustrated they don’t receive a fair price for their homegrown generation. On the other side of the fence, network operators have been aggrieved by the need to manage the technical impacts of solar PV and wind while their business model ‘death spirals’ from lower consumption.
Beyond the angst, new models such as microgrids and virtual power plants are starting to demonstrate that sharing solar PV generation and battery storage across the grid can leverage the opportunities and help manage the risks inherent in Australia’s changing electricity sector. For customers, potential benefits include access to wholesale pricing and retail tariffs. For networks, there can be lower costs from local control and load management, particularly if the models can reduce peak demand and avoid the need for network infrastructure augmentation.
Of course, the value of sharing locally generated energy across the grid is dependent on the time of day, the time of year and the location. The key challenge for ‘in front of the meter’ solutions is not only to understand the technology, but also to apply the fundamental principles of supply and demand to determine where the greatest value can be realised.
Bruce Thompson recently joined GreenSync as the Community Development Director following 12 years at Moreland Energy Foundation Ltd (MEFL) as major projects director. He is also the outgoing chair of the Coalition for Community Energy (C4CE). Paul Murfitt was recently appointed director of energy efficiency for the Victorian Government and is the outgoing CEO of MEFL.
Read the full article in ReNew 137.
This entry was posted on Monday, September 12th, 2016 at 12:25 pm