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The Electricity Grid. The why, the where and the future. 26 March Dr Robert Barr AM. Sothern Highlands & Tablelands Group Engineers Australia

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© Electric Power Consulting Pty Ltd 2015

1

The Electricity Grid

The why, the where and the

future

26 March 2015

Sothern Highlands & Tablelands Group – Engineers Australia

Dr Robert Barr AM

Electric Power Consulting Pty Ltd

© Electric Power Consulting Pty Ltd 02. Distribution Network Components 2

© Electric Power Consulting Pty Ltd 02. Distribution Network Components 3

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© Electric Power Consulting Pty Ltd 02. Distribution Network Components 5 © Electric Power Consulting Pty Ltd 02. Distribution Network Components 6

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© Electric Power Consulting Pty Ltd 02. Distribution Network Components 9 © Electric Power Consulting Pty Ltd 02. Distribution Network Components 10

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© Electric Power Consulting Pty Ltd 02. Distribution Network Components 13 © Electric Power Consulting Pty Ltd 02. Distribution Network Components 14

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© Electric Power Consulting Pty Ltd 02. Distribution Network Components 17 Electric Power Consulting Pty Ltd © Electric Power Consulting Pty Ltd 02. Distribution Network Components 18

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© Electric Power Consulting Pty Ltd 02. Distribution Network Components 21

© Electric Power Consulting Pty Ltd 02. Distribution Network Components 22

© Electric Power Consulting Pty Ltd 02. Distribution Network Components 23 Electric Power © Electric Power Consulting Pty Ltd 02. Distribution Network Components 24

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© Electric Power Consulting Pty Ltd 02. Distribution Network Components 25

Electric Power C

25

26

Hydro

Electric Power Consulting Pty Ltd

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6 x 50MW Peaking Plant – Snowy Hydro

Valley Power, Latrobe Valley, Victoria Australia

300MW Open Cycle Natural Gas

Electric Power Consulting Pty Ltd

Eraring Power Station

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Yallourn Power Station

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1,490 MW Brown Coal – 4 units

Tallawarra Power Station

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435 MW Combined Cycle Natural Gas

Solar Photovoltaic

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Wind

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Disruptive Technologies

• The old business models are not

working well in the new

environment

• Heavy cross subsidies from

non-solar PV uses to non-solar PV users

• Is causing network stress

Electric Power Consulting Pty Ltd

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• Benefits

– Reduce network losses

– Delay augmentations?

– Voltage support?

– Green kWhs?

Embedded Generation Issues

Negatives

Voltage rise

Cold load pick up

Dual power flow analysis

Some network augmentations

required

Dancing Partner Issues

• Intermittent generation has major

cost implications

• The power system network is not a

battery

• Low cost energy storage is the

missing element that can make

renewables a valuable assets

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Modeled Conventional Dispatch

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Modeled Small Wind

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Modeled Large Scale Wind

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13% Wind

Wind

• Every 100MW of wind generation requires

about 90 MW of conventional generation for

backup

• All wind generation needs a “dancing partner”

• Wind is only financially viable with LRET

• Will most likely be the main method of

reaching the 20% renewable target for 2020

Electric Power Consulting Pty Ltd

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Electric Power Consulting Pty Ltd

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Network Death Spiral???

• Intermittent Distributed Generation

– reduces kWh energy throughput

– adds network cost per kWh delivered

– encourages more intermittent generation

• Restructuring of network charges is required

– need to move away from kWh charges

– move toward kW demand charges

Electric Power Consulting Pty Ltd

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Electricity Network Charges

• Why the recent increase in NSW network

charges?

• Australian Energy Regulator

– ~30% reduction in Operating Expenditure

– big cuts in capital spending

– reduced load growth

– replacement expenditure

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Privatisation in NSW?

• Lease

– Endeavour Energy

– Ausgrid

– TransGrid

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Improved Energy Storage

• Has the potential to radically change the

electricity network model

• Both threat and opportunity

– customers could move to standalone PV

installations

– could allow N-1 performance with a N network

– could pave the way for electric cars

Electric Power Consulting Pty Ltd

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Conclusions

• Network business around the world are being

transformed

• Cross subsidy removal is an essential part of the

reform process

– network charges need to move away from kWhs to kWs

(import and export)

• Wind and solar PV generation require large scale

conventional “backup” power generation –

dancing partners

Electric Power Consulting Pty Ltd

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Conclusions

• Economics will drive much of the “back up”

generation to be open cycle gas:

– Capital cost

– Higher CO

2

producing plant

• Energy storage is potentially the big game changer

– electric cars

– allow the removal of lightly loaded rural parts of the network

– is needed to make renewables work

Electric Power Consulting Pty Ltd

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Conclusions

• Electricity networks will be needed for a long time

to come.

• As customer needs change, so will the networks

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Questions?

Electric Power Consulting Pty Ltd

References

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