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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1 The Electricity Grid The why, the where and the future 26 March 2015 Sothern Highlands & Tablelands Group Engineers Australia Dr Robert Barr AM Distribution Network Components Distribution Network Components Distribution Network Components 4 1

2 02. Distribution Network Components Distribution Network Components Distribution Network Components Distribution Network Components 8 2

3 02. Distribution Network Components Distribution Network Components Distribution Network Components Distribution Network Components 12 3

4 02. Distribution Network Components Distribution Network Components Distribution Network Components Distribution Network Components 16 4

5 02. Distribution Network Components Distribution Network Components Distribution Network Components Distribution Network Components 20 5

6 02. Distribution Network Components Distribution Network Components Distribution Network Components Distribution Network Components 24 Electric Power 24 6

7 Hydro 02. Distribution Network Components 25 Electric Power C Valley Power, Latrobe Valley, Victoria Australia 300MW Open Cycle Natural Gas Eraring Power Station 6 x 50MW Peaking Plant Snowy Hydro 4x 660 MW Black Coal

8 Yallourn Power Station Tallawarra Power Station 1,490 MW Brown Coal 4 units 435 MW Combined Cycle Natural Gas Solar Photovoltaic Wind

9 Disruptive Technologies The old business models are not working well in the new environment Heavy cross subsidies from nonsolar PV uses to solar PV users Benefits Embedded Generation Issues Reduce network losses Delay augmentations? Voltage support? Green kwhs? Negatives Voltage rise Cold load pick up Dual power flow analysis Some network augmentations required Is causing network stress 33 Dancing Partner Issues Modeled Conventional Dispatch 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

10 Modeled Small Wind Modeled Large Scale Wind 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

11 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 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 Lease Endeavour Energy Ausgrid TransGrid Privatisation in NSW? 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

12 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 Conclusions Economics will drive much of the back up generation to be open cycle gas: Capital cost Higher CO2 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 Conclusions Questions? Electricity networks will be needed for a long time to come. As customer needs change, so will the networks

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