The Customer Centric Grid API Summer School

Presented by Helen Stewart Energex Limited 23 February 2016

We are Energex 1.4M customers •  1.3M residential •  121K business 1.9M air conditioners 838,000 electric hot water systems 280,000 swimming pools 303,575 solar connections 3,000 staff members

Peak demand still drives network investment Mango Hill Substa4on Load Profile

Very Hot Tuesday / Typical Tuesday in Summer 2/02/2016

9/02/2016

45 40

Demand MW

35 30

16.73MW

25 20 15 10 5 0 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

Demand and energy growth

Note the disconnect: electricity is billed on energy but the network investment is based on demand

Storm at 2pm Source: Energex DAPR 2014/15 – 2019/20

Solar impact over time

New system off-peak 8/8/15

Minimum Load was 1663 MW @ 12:30 pm

Growth in solar connections

Overall size of PVs is increasing 50%

40%

≤ 1.5 kW

30%

1.5-2.5KW 2.5-3.5KW 3.5-5KW

20%

≥ 5.0 kW

10%

0% 2010

2011

2012

2013

2014

2015

Energy consumption has been decreasing in SEQ

Customers are embracing new technology

Impact of lighting on summer peak

Source:

Customer behaviour “Whiltsher's bill has more than halved”. Read more: http://www.smh.com.au/ business/energy/howbatterypowered-homesare-unpluggingaustralia-20150731giogk2.html#ixzz3hoSK4 tVI

Source:

SMH Online 3/8/15 - Jane Whiltsher poses with her "new toy" - the battery that powers her home. Photo: Bradley Kanaris

“At approaching $40,000, it hasn't been a cheap investment. But that's not the point. "As far as I am concerned if it takes me off the grid then it's paid for itself already," she says. Whiltsher's enthusiasm to invest hard-earned cash for a home power system that may take as long as 12 years to pay for itself is being echoed around the country as Australians race to install batteries.”

Cost curve - PV vs batteries

Energex is responding •  Undertaking research of customer behaviour and technology •  Building on demand management (DM) capability •  Includes undertaking baDery trials •  Tariff development – C&I (kVA demand) and residential demand (kW) •  New secondary systems and increased analytics •  Non-network assessments including replacement/refurbishment •  Changes to planning inputs •  Plant raGngs •  Forecasts (indicate customer demand requirements 10PoE/50PoE) •  Reliability standards/criteria (regulatory and customer expectaGons) •  Asset condiGon •  Risk appeGte NB: Safety, regulatory and legislative compliance remain key

Research on batteries & EVs BaJery Storage – South East Queensland 46%

$4,621

34%

5%

2% 2% Awareness

Ownership 2014 2015

9%

average expected price for battery storage

10%

of those intending have approached a salesperson

IntenGon to purchase (next 3 years)

Considera4on of an Electric Vehicles at Different Price Points 44% 39% 20% 22% 3% 3% $50,000

6% 6% $40,000 2014 (n=3,991)

$30,000 2015 (n=3,479)

$20,000

An independent report for the Energy Networks Association suggests a 4kw off grid system would cost $56,000. The battery component being $24,520.

Peak demand is actively managed via our Demand Management Programs to minimise overall cost Control centre

Targeted control to address local network issues

Air CondiGoners Hot Water Systems

Demand Management has been central to the efficient design and operaGon of the Energex network for decades and underpins the record low augmentaGon capex that is proposed for 2015 -2020

Swimming pools

Zone Sub

DistribuGon

Customers

Growth driven augmentaGon Capex is not driven by system-wide peak demand. Energex sGll has areas with demand growth which drive Capex consistent with security standards 17

Using LC to match load to generation 25

20

Test switching

15

10 Normal switching

MVA

0

24 MWh of energy moved to fill in the trough – from hot water system load used during solar production 00:00 00:35 01:10 01:45 02:20 02:55 03:30 04:05 04:40 05:15 05:50 06:25 07:00 07:35 08:10 08:45 09:20 09:55 10:30 11:05 11:40 12:15 12:50 13:25 14:00 14:35 15:10 15:45 16:20 16:55 17:30 18:05 18:40 19:15 19:50 20:25 21:00 21:35 22:10 22:45 23:20 23:55

5

Arana Hills SubstaGon Thursday (19/03/15) to Friday (20/03/15)

Smart demand •  Reliable •  Lower cost than building network



•  Scalable •  Repeatable

•  PeakSmart installations

Posi4ve Payback Program PeakSmart aircondi4oning

Over 50,000 air-condiGoners, providing 38 MVA of load (diversified) under control.

Hot water systems connected to a control load tariff

770,000 residenGal customers with hot water connected to control load providing a total of 550 MVA peak load (diversified) in winter and 350 MVA load peak load (diversified) in summer.

Pool pumps connected to a control load tariff

20,000 pool pumps providing 17 MVA load (diversified) under control

Power factor correc4on

409 power factor correcGon installaGons resulGng in 52 MVA reducGon.

Energy Efficiency

187 installaGons or upgrades that lowered onsite peak electricity demand resulGng in a 10 MVA reducGon.

Targeted campaigns •  Refer to –  Energex website – –  Demand Side Engagement and Positive Payback – 

https://www.energex.com.au/the-network/demand-side-engagement https://www.energex.com.au/residential-and-business/positive-payback/positive-payback-for-business

–  DNSP DAPRs –  DNSPs Demand Side Engagement Documents –  RIT-D augmentation projects > $5m e.g., United Energy Draft Project Assessment Report Lower Mornington Peninsula

–  NB: DAPR refurb/replace projects > $2m

PeakSmart air-conditioning •  AS4755 •  Helps reduce peak demand without affecting customer comfort levels •  Similar to ‘economy mode’ setting on air- conditioners •  Only activated on very hot or cold peak days •  Incentives for customers who connect to the program

Partnerships key

0 08/2015

06/2015

04/2015

02/2015

12/2014

10/2014

08/2014

06/2014

04/2014

02/2014

12/2013

10/2013

08/2013

06/2013

04/2013

02/2013

12/2012

10/2012

08/2012

06/2012

04/2012

02/2012

12/2011

700

10/2011

08/2011

06/2011

04/2011

02/2011

12/2010

10/2010

08/2010

Manufacturers offering AS4755.3.1 products Number of Models Available in Australia

600

500

400

300

200

100

Energex BESS pilots Will FOCUS on integration, communication and control of BESS

1 Energex directed battery storage pilot

2 Market driven battery storage pilot

o  Support customer energy needs o  Promote connected services o  Reduce network impacts due to PV (e.g voltage rise and unbalance) o  Enable higher penetration of PV

Energex EsiTrain Site: two residential scale systems Will explore integration with GE PowerOn DMS

Market based battery trial Will be based on sucessful PeakSmart air conditioner program PeakSmart AC •  Based on AS4755 •  All major air-con manufacturers participating •  Air-cons signalled on a few hot days each year to reduce peak demand •  ‘Set and forget’ for customers and no impact on comfort

Demand response modes

• 

• 

From DR AS/NZS 4755.3.5

From AS/NZS 4777.2:2015

2 7

What’s in it for customers? Short Term Benefits

Medium Term Benefits

Long Term Benefits

Up front incentives

Increased PV hosting capacity

Reduced costs to maintain and build network

Set & forget (easy)

Opportunities to benefit from cheaper tariffs

Lower bill increases

The Customer Centric Grid

Questions [email protected]