Energy market transformation in Australia:DER orchestration09 October 2017

1 Energy market transformation in Australia

23

Orchestration value pools and where AGL is involved

AGL’s Virtual Power Plant in South Australia

Large thermal power stations providing energy through one-directional transmission and distribution systems

3

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Consumers are concerned about ‘cost of living’

Around 90 MW of solar rooftop sold over last three months in Australia according to Clean Energy Regulator Data

Small-scale PV Installation in Australia by month (kW) (<100 kW)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2011 2012 2013 2014 2015 2016 2017 2018

Cu

mu

lati

ve

MW

Financial year endning June (2018 is FY to September)

Industrial (>100 kW <=10MW)

Commercial (>10 kW <100kW)

Residential (<=10 kW)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Jan

20

10

Se

p 2

01

0

Ma

y 2

01

1

Jan

20

12

Se

p 2

01

2

Ma

y 2

01

3

Jan

20

14

Se

p 2

01

4

Ma

y 2

01

5

Jan

20

16

Se

p 2

01

6

Ma

y 2

01

7

kW

/mo

nth

Month

WA

VIC

TAS

SA

QLD

NT

NSW

ACT

Source: Sunwiz, Clean Energy Regulator, APVIA (2017)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

GW

h/y

ea

r

Bloomberg: Annual storage

installations

Residential Commercial Industrial

0

5

10

15

20

25

30

35

40

GW

h

Bloomberg: Cumulative Storage

Installations

Residential Commercial Industrial

Source: Bloomberg New Energy Finance, February 2017, Australia Behind the meter PV and storage forecast

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PowerPlantHydroSolarWindStorageGenerator

Market Operations

Schools

Homes Electric cars

PLANNING

MARKETS

RELIABILITY

Transmission

Energy Supply

IntegratedDistributedResources

Customer Retailer *

Two-way flow of electricity

Commercial building

FactoriesSolar**

Storage**

**Orchestration of DER *i.e. energy retailer, aggregator and/or third party

Supply Demand

Diverse large-scale and small-scale low-emissions generation supplied through an intelligent network

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What?

• Create the world’s largest Virtual Power Plant (VPP) of 5MW in South Australia

• Incorporate 1,000 controllable batteries to SA homes and/or small businesses who have solar

Why?

• Facilitate further integration of intermittent renewable generation

• Demonstrate improved network stability

• Increased solar self-consumption and reduce energy bills

• Catalyst for development of the Australian VPP market

How?

This activity received funding from ARENA as part of ARENA’s Advancing Renewables program

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• 1,000 batteries in 3 Phases

• The sale and deployment of battery storage solutions to SA homes and/or small businesses at a price that provides customers an acceptable return

• The demonstration of distribution and transmission network services

• Quantification of broader community benefits such as grid resilience, energy security, and enablement of higher renewables penetration

• Phased battery deployment:

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Stephanie Bashir

Senior Director Public Policy

AGL Energy

sbashir@agl.com.au

Contact

agl.com.au 131 245 Download the app agl.com.au/ community

facebook.com/aglenergy

twitter.com/@aglenergy

youtube.com/aglenergy