PowerPoint Presentation · • Revenue from PPA ensures capital return over term with interest •...
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Transcript of PowerPoint Presentation · • Revenue from PPA ensures capital return over term with interest •...
Community Renewable Energy -
for a fair and rapid energy transitionFranziska Mey
Institute for Sustainable Futures & Community Power Agency
What is Community Energy?
Community energy is where a community develops, delivers and benefits from sustainable energy projects.
This can include supply-side projects such as renewable energy installations and storage and demand-side projects such as energy efficiency and demand management. Community energy can even
include community-based approaches to selling or distributing energy.
Source: C4CE, National Community Energy Strategy 2017
Source: Mey, 2017
Benefits of Community Renewable Energy
Benefits of Community Renewable Energy
Source: Hicks and
Ison 2011
Maximising Benefits
Absentee/ Corporate owned Community/ Locally owned
Germany €7 million over life of project €58 million over life of project
UK £1,000-5,000 / MW / year £200,000-300,000 / MW / year
USA $13,000-55,000 / MW / year $82,000-140,000 / MW / year
Australia $500-1,200 / MW / year to
community fund
$5,000 - 8,000 / MW / year to
community fund
Local jobs per MW of locally owned wind farms is 2 x as many
Economic impact of wind farms with local ownership versus those with
external ownership:
Source:
Various in Mey 2017
Development of Community Renewable Energy
Enablers of Community Energy
Den
mar
k • Oil price crisis
• Anti-nuclear movement
• Collective action
• Institutionalization in cooperative form
• Incremental small-scale development
• Government support
Ger
man
y • Chernobyl accident
• Diversification and professionalization
• Institutional support for challenger actors and grassroots innovation
• EEG –Renewable Energy Act
Au
stra
lia • Multiple disruptions
• Climate movement
• Local and state government level support
• Local innovation -behind the meter models
Source: Mey, 2017
Processes and Drivers for Community Energy
Community Renewable Energy in Australia
Community Renewable Energy 2018
90+ groups
developing projects
70+ projects installed
Source: Personal communication Ison and Nockolds 2018
Thank you
www.cpagency.org.au
Franziska Mey0404 229 249
Types of Community Models
Donation/community organisation modelse.g. CORENA, The People’s Solar, Bendigo Sustainability Group
Community investment modelse.g. REpower Shoalhaven, Hepburn Wind, Denmark Wind, Pingala, Sydney Renewable Power Company
Commercial-community partnership modelse.g. Clearsky Solar Investments, CENREC/ Infigen, CWP Sapphire
Multi-household models of community energye.g. Darebin Solar Savers, More Australian Solar Homes
Source: C4CE 2017
What is ClearSky?
A not• -for-profit companyProvides finance for PPA’s •
Targets mum and dad investors•
National reach for both investors and projects•
Four directors•
Works exclusively with Smart Commercial Solar•
When was ClearSky established?
• Brainchild of community climate change group CEFE Northern Beaches• Successful in obtaining NSW government grant of $60,000 in 2013• Grant used to research suitable structures and adopt best• Grant used to develop legal documents and web-based admin system• Key component was formalising relationship with SCS• Launch and first project in September 2013
Why was it set up?
• To accelerate the roll-out of renewable energy• To empower communities to benefit environmentally and economically from
the production of clean energy.• To fill a gap – there was no easy way for ordinary folk to invest in solar• To raise awareness of the economic benefits of solar• To address the imbalance between domestic and commercial rooftop solar• To garner community support for renewable energy via the hip-pocket nerve• To provide an avenue for individuals to respond to climate change• To get maximum leverage on the volunteer resources we had available
How does it work?
• Makes use of exemption under Corporations Act• Trust set up for each project – max 20 investors, $2 million• Small projects have single investor and no Trust• Investors in Trust purchase units which finances installation• Revenue from PPA ensures capital return over term with interest• Term length set to give investors acceptable return in range 7-9%• SCS owns panels but contacts with Trust to pass on PPA revenue• Trust contacts with CSSI to outsource all administration• Risks managed via a variety of mechanisms
What has been achieved to date?
> $• 3 million invested29 • installations across all states except Tasmania19 • trusts to date
• >2 MW installed capacityInvestor pool > • 1300250 • investors to date, many with multiple investmentsIndividual project investments range from $• 2000 to $50,000All projects have delivered expected returns•
Investment demand greatly exceeds • project supply
Harnessing the flexibility of behind-the-meter energy resources
Dr Archie Chapman
University of Sydney
School of Electrical and Information Engineering
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The future:
Rise of the Prosumer
CSIRO Future Grid Forum scenario:
● By 2050, a tide of consumers take up on-site
generation (46%) and electric vehicles (27%).
● The role of centralised power and liquid fuels
declines considerably.
● Customers choose their level of control from a
wide variety of plans.
● The network becomes a platform for
transactions.
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There are already huge quantities of demand
response resources sitting on distribution networks...
...but the networks are the main barrier to accessing their value.
● Automation technology,
● Information (network description or constraints), and
● Incentives or market design.
Networks are the conduits for bringing flexible loads
to energy services markets
● Flexible loads include hot
water storage, air conditioners,
residential batteries and electric
vehicles.
● These and other distributed
energy resources can provide
network and system services
and compete with traditional
generators.
Image from: Riaz, Marzooghi, Verbic , Chapman and Hill, “Generic
Demand Modal Considering the Impact of Prosumers for Future Grid
Scenario Analysis,” IEEE Transactions on Smart Grids, 2017.
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CONSORT project
CONSumer-owned batteries providing network suppORTEnabling networks and consumers to work together
to meet their needs and reduce overall costs
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Bruny Island trial- 31 PV-battery systems installed
- reduced diesel use on Bruny Is
CONSORT solution
Use PV-batteries to provide:
support - to the network
revenue to their- owners
Use the network as an automated
energy trading platform
ARENA R&D Industry project
- 3 years (April 2016-2019)
ARENA provided $- 2.9m
towards the $8m project
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Network-Aware
Coordination (NAC)
Challenge: To coordinate many distributed “prosumers”
with diverse energy requirements and energy resources
to operate the network safely at lowest cost?
Approach:
● Model-based, explicit network representation*,
● Solution found by iterative negotiation,
● Prices are set so that participating customers always
have a financial gain for providing network support,
● Distributed optimisation techniques leverage the
processing power of Reposit’s battery controllers.
*Only possible with detailed network information.7
Three facets to
harnessing DERs
8
We can only get the most out of the existing stock of
behind-the-meter energy resources if we have the right:
Automation● technology,
Network information,● and
Incentives or market● design.
Local generation initiatives Chris Barrett - Commercial Manager Green Infrastructure - City of Sydney
/ Insert footer2
Rooftop energy at Town HallLocal generation to the fore
/ Insert footer3
Town Hall precinct optionPotential future energy sharing
Green Square town centre
South Sydney Hospital Site
Stage 1
community
buildings
Stage 2
community
buildings
Child
care
Kiosk
Water
reuse
MSB
Aquatic
centre
Ausgrid network
LV private electricity network
GIC
Trigen
PVSolar PV
PV
Solar PV
PV
Sharing local energy
Local generation at Central ParkSustainability focused urban living
Local generation initiativesThe shape of demand to come
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Considerations for local generation
Interactions with networks
• Energy precincts can provide value to networks
• Roles and responsibilities need refinement
Interactions with investors and customers
• Precincts can be financial and environmental winners
• Successful precincts rely on good design & management
Implications for policy makers
• Time for a more holistic approach
• Local generation is part of the mainstream
• Barriers to local energy sharing should go
• Carbon pricing signals can help optimise outcomes
Peer 1PV Load
Peer 2PV Load
Peer 3PV Load
Peer 4PV Load
Meter
Meter
Meter
Meter
Feed-In-Tariff < ‘Local Energy / P2P Tariff’ < Retail Tariff
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Pow
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)
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Example Coincidence of Solar and Load Profiles Over 30 Minute Period
Solar Load
Grid
Peer 1PV Meter
Peer 2LoadMeter
‘Peer to Peer’ Payments May Not Reflect Reality•
Short• -Term: Operational Signals Distorted
Long• -Term: Investment Signals Distorted
Aggregate
PV & LoadCalculate %
Provided by PV
Allocate Tariff as
% of Peer Bill
Aggregate
PV & Load
Split - Quota For
Each ParticipantAllocate Tariff as
Quota in Peer Bill
• Evaluation of more complex allocation rules
• Higher Frequency Data
• Real-World Peer to Peer Network
