King Island Renewable Energy Integration Project

Isolated Power System Connect 2015

Simon Gamble

Manager Hybrid Off-Grid Solutions

• Government Business – owned by State of Tasmania

• Australia’s largest clean energy producer

• Responsible for generation, distribution and retail in the Bass Strait islands

• Developer, owner and operator of leading hybrid off-grid system on King Island – our test bed.

• Leading consultant to aid agencies and utilities, including: Yap, Pitcairn, Chatham Islands, Cook Islands, Rottnest Island, Coober Pedy

Hydro Tasmania Hybrid off-grid power systems capability

King Island location Source: Google Earth

King Island hybrid power system Development path for renewable energy

Population approx. 1,600 2.5MW load 6MW diesel generation 450km of 11kV

• Expensive system - diesel fuel is 80% of cost - incentive to use RE

• Adding RE is an integration challenge – RE displaces diesel generation

• High RE requires enabling systems – communication; control; services

• Requires holistic approach – planning; phasing development

Diesel fuel cost dominates

1998 – First Wind Farm Low renewable energy penetration

750kW wind

“Low hanging fruit”

Deliberately limited RE installed

No impact to operations

Simplified Solar PV example

15% reduction in diesel

2.45MW wind (1.2MW min load)

RE controlled (limited) protect diesels

Some RE is wasted (curtailed)

At this point you need enablers:

- 1st enabler - automated control

2004 – Wind Farm Expansion Medium renewable energy penetration

Simplified Solar PV example

30% annual reduction in diesel

Note minimum diesel operation Diesel still regulating

Enabling technology – Dynamic Resistor (Load bank) elements

• Resistive elements artificially increase the load: convert excess to heat

• Load balance is maintained (dynamically by resistors) – not diesel generators

• More RE is utilised – more diesel savings

2008 – Dynamic resistor (2nd enabler) Enhanced medium renewable energy penetration

Counterintuitive : taking spilled energy & converting to a useful service

35% annual reduction in diesel

Dynamic resistor operation

Grey areas show dynamic resistor controlling system frequency using excess RE.

Note reduction in diesel generation variability at these times – driving diesel savings.

2012 – Diesel UPS (3rd enabler) Ability to operate at 100% RE penetration

• The need to always operate diesel generation has been a key barrier to renewables o Next logical challenge to switch off

To achieve 100% RE penetration systems require:

• Surplus RE generation

• Full automation – high speed communication and control

• Enabling systems – that replace all services provided by diesels

King Island flywheel – supports system without diesel generation Consumes spilled renewables to operate

An instant start diesel generator to provide firm capacity Inertia, Voltage regulation, Fault current

D-UPS “catches” system when diesel fails (as example)

• Absorb excess RE (increase the load)

• Recover excess RE (power injected)

• Provide a range of services

• King Island battery primarily for : o Reserves to support 100% RE operation

o Frequency control

2014 - Energy Storage (4th enabler) An enabling technology option for high RE penetration

Australia’s largest battery – 3MW / 1.5MWh King Island

2014 - Demand management Further optimise RE utilisation by altering demand to match available RE generation (another option)

• Aggregates controllable customer load to help balance demand / supply during high RE contribution

• Fast load shedding , smart EV charging, smart solar PV switching

• Monitoring customer load and providing data to customers via smart phone app.

2015 - King Island system Proven, robust, reliable MW class hybrid system Result of planned, coordinated activity

Winner 2013 innovation award

> $24m in diesel savings (>$2m per annum) > 1,300 hrs of diesel off operation

65% diesel savings now possible Good return on investment Cost of power reduced

2015 – King Island system operation Extended “diesel off” operation Combined performance of enabling systems

King Island app & web site: real time data www.kireip.com.au

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• Renewable energy technologies can economically reduce the cost of off-grid energy supply by significantly reducing the consumption of diesel fuel

o Renewable energy integration is the key to increased utilisation

o Start with increasing instantaneous penetration whilst maintaining stability

• System wide planning is critical – develop a roadmap, conduct system modelling

• Technology continues to mature and costs reduce

o Economics drives optimum RE contribution level (not technical capability)

– King Island demonstrates a range of solutions from low to very high RE

o Significant cost benefits are possible through standardisation

• Understand your business case: What items drive return? – e.g. RE vs storage

Lessons from King Island (1)

Off-Grid Projects:

• Significantly more costly than on-grid : 200-300% (consider in cost estimates)

• Easier to control cost than time – logistical challenges (allow significant float)

Project Planning and Design:

• Involve site staff – integrate operational factors

• Test designs prior to rollout – dynamic studies / HIL / parallel operation

• Specification – know exactly what you want

Implementation:

• Construction : manage contractors closely – near enough isn’t good enough

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Lessons from King Island (2)

Operations:

• Must be simple and robust - e.g. DUPS no more complex than a diesel engine

• Must default to fail safe operation with any system outage

• Documentation and training are critical – site capability will impact returns

Suppliers:

• Conduct due diligence – proven practical performance essential

• Experience in the specific application is critical – off-grid is different

Community: critical to success

• Early and ongoing engagement – multiple channels – don’t assume > engage

• Get them involved in project – consultative committee

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Lessons from King Island (3)

Further information:

Hybrid Off-Grid Solutions

Simon Gamble

simon.gamble@hydro.com.au

www.kireip.com.au

“KIREIP” iPhone app

Thank you