1

ARENA  Integra-ng  Renewables  and  Grids  

Danny  De  Schu+er  

CSIRO  Future  Grid  Collabora-ve  Research  Cluster  -­‐  Industry-­‐Research  Symposium  18  March  2015  -­‐  University  of  Sydney  

2

Tradi-onal  Electricity  Industry  

One Way System

Generators  

Distribu3on  Grids  

Transmission  Grid  

Residen3al  Customers  

Commercial  Customers  

Industrial  Customers  

3

Developing  Electricity  Industry  

Power flow in all directions

Generators  (Non  RE)  

Distribu3on  Grids  

Transmission  Grid  

Residen3al  Customers  

Commercial  Customers  

Industrial  Customers  

Renewable  Energy  

Generators  

Micro  Grids  

Prosumers  

EV  

Distributed  Energy  

Resources  

4

Integra-ng  Renewables  and  Grids  –  Stocktake  (Aug  2014)  

1.  Projects  rela-ng  directly  to  integra-on  of  distributed  renewable  energy  and  networks  

2.  Projects  that  contribute  knowledge  and  experience  to  integra-on  of  renewable  energy  and  networks  

176  projects,  from  network  operators,  industry  associa-ons,  governments,  technology  proponents,  electricity  retailers,  governments  and  academic  ins-tu-ons.      

hXp://arena.gov.au/ini-a-ves-­‐and-­‐programs/integra-ng-­‐renewables-­‐in-­‐the-­‐grid/  

5

IRG  Objec-ves  from  Stocktake  

1.  Control  intermiXent  genera-on  sources  

2.  Strengthen  the  network    

3.  Smooth  intermiXent  genera-on  

4.  Manage  local  load  profiles  

5.  Use  DER  for  network  constraints  

6.  Store  informa-on  on  DER  

7.  Improve  RE  forecas-ng  

Economic  /  Commercial  Objec3ves   Technical  Objec3ves  

1.  Quan-fy  benefits  /costs  of  RE  

2.  Support  alterna-ve  network  pricing  

3.  Create  new  business  models    

4.  Inform  the  regulatory  environment  

5.  Build  understanding  of    DER  

6.  Improve  cost-­‐efficient  grid  integra-on  

7.  Improve  network  prac-ces  

6

China,  Japan  and  South  Korea  have  ambi-ous  smart  grid  projects  which  also  aim  at  building  export  industry  poten-al  (Project  175:  Jeju  Island  Smart  Renewable  Project,  South  Korea)  

European  Projects  focus  on  control  systems  and  new  business  models  to  control  Renewable  Technology.  (Project  325:  The  eTelligence  Project,  Germany)  

In  the  US,  projects  are  more  likely  to  focus  on  ground-­‐breaking  IT/ICT  solu-ons  to  reduce  cost  in  the  short  term  (NREL  Energy  Systems  Integra3on  Projects)  

The  ARENA  funded  stocktake  also  includes  a  selec3on  of  60  of  the  most  important  interna3onal  projects  and  iden3fies  interna3onal  trends.    

Interna-onal  Industry  Developments  

7

Australian  Industry  Developments  

Some  other  objec-ves  are  less  well-­‐addressed:  notably,  projects  to  do  with  Storing  and  organising  informa-on  on  customer  renewable  energy  deployments  are  less  than  a  third  as  common  as  those  to  do  with  cost  efficiency  

Measuring  or  quan-fying  the  benefits  and  costs  of  renewable  energy  

Strengthening  the  network  to  manage  higher  renewable  energy  penetra-on  

Making  the  process  of  integra-ng  renewable  energy  into  the  grid  more  cost  efficient  

Crea-ng  new  business  models  to  cater  to  the  shic  to  a  network  with  high  levels  of  distributed  energy  resources  

116  projects  iden3fied  in  the  stocktake  are  in  Australia.  Of  these,  29  were  ARENA  funded.  Overall,  the  Australian  projects  in  the  stocktake  represent  total  funding  of  at  least  $4  billion.  

8

Australian  Context  (unique  features)  Unique  Features:  -­‐  Hot  and  dry  climate  -­‐  Remote  communi-es  and  industry  -­‐  Falling  demand  -­‐  Robust  main  networks  but  some  very                long  lines  -­‐  Policy  Evolving  (COAG,  SCER,  POC)  -­‐  Combina-on  of  dense  urban,                regional  and  remote,  and                ‘fringe  of  grid’  networks  

9

ARENA  works  with  industry  and  research  partners  on  two  core  objec-ves  

FUNDING  

$2.5  billion  to  2022  for:  

•  Projects  •  R  &  D  •  Knowledge  

Capture  &  Sharing  

 

2.  Increase  supply    of  renewable  energy  

OBJECTIVES  

1.  Improve  compe33veness  of  renewable  energy  technologies  

 

Knowledge   Mandated  obliga-on  to  collect,  store  &  disseminate  knowledge  &  learning  from  renewable  energy  projects  &  ini-a-ves  that  ARENA  funds  

HOW  

1.  Improve  the  technical  and  commercial  readiness  of  technologies    in  Australia  2.  Address  current  energy  issues  through  renewable  energy  

10

ARENA  across  the  Innova-on  Chain  

For information about closed and former programs see history. ARENA programs on the innovation chain We invest in renewable energy projects from research to pre-commercial deployment.

Research  &  Development   Deployment  Demonstra3on  

Early  stage  research  

Pilot  scale   Pre-­‐commercial  

Large  scale  Development   Compe33ve  commercial  

ARENA  Projects  

Knowledge  Sharing  collabora3on  and  engagement  

R  &  D  Program  

11

Aim  is  to  create  valuable  knowledge  and  improve  technology/commercial  readiness  

Lessons  learned  

Technology/commercial    readiness  

INVESTMENT  PRIORITIES

Res

ults

O

pera

tion

PROJECT  1   PROJECT  2   PROJECT  3  

Quality  Control  Analysis  Synthesis  

Knowledge  ü  De-risk projects ü  Lowers costs ü  Reduces barriers

12

Integra-ng  Renewables  and  Grids  

Developing  renewables  and  enabling  technologies  

Applying  renewables  to  markets  

Challenges  Policy  

Technical  Commercial    Knowledge  

13

IRG  Challenges  

1.  Facilita-on/removal  regulatory  barriers  to  products/services  

2.  Standards  for  DER  (including  storage)  and  for  services    

3.  Network  technology  to  manage  RE  penetra-on/integra-on  

4.  RE  forecas-ng  techniques  and  storage  technology  

5.  Business  models  for  distributed  energy  resources  

6.  Alterna-ve  pricing  approaches  for  DER  including  storage  

7.  Building  Evidence  Base  8.  Knowledge  Sharing    

Challenges   Approach  to  Address  

 Policy  •  Policy  &  Regula-on  •  Standards  (performance)  

Technical  •  Penetra-on/Integra-on  Issues  •  RE  IntermiXency    Commercial  •  Revenue/Business  Models  •  Pricing  

Knowledge  

14

1.   Facilita3on/removal  regulatory  barriers  to  products/services  

2.   Standards  for  DER  (including  storage)  and  for  services    

3.   Network  technology  to  manage  RE  penetra3on/integra3on  

ARENA  can  have  an  impact  across  most  of  these  areas  

4.   RE  forecas3ng  techniques  and    

             storage  technology  

5.   Business  models  for  distributed  energy  resources  

6.   Alterna3ve  pricing  approaches  for  DER  including  storage  

ARENA  ROLE  

Invest   Knowledge  

Studies,  Pilots,  Demos   Results,  Outcomes,  Lessons  Learned  

Studies,  Pilots,  Demos  relevant  to  Aust  

condi3ons  

Results,  Outcomes,  Performance  Data  

Grid  technology  Demonstra3on  and  

Deployment  

Performance  Data,  Lessons  Learned  

Pilots,  Tes3ng  and  Demonstra3on  

Performance  Data,  Lessons  Learned  

consult  with  researchers  and  industry  

Pilot  Business  Models,  Demos  and  Deployment  

Performance  Data,  Commercial  Outcomes,  

Lessons  Learned  

Pilot  pricing  approaches,  Demos  and  Deployment  

Performance  Data,  Commercial  Outcomes,  

Lessons  Learned  

Approach  

Forecas-ng  

Storage  

15

Opportunity  for  new  projects  across  all  areas  

1.  Facilita-on/removal  regulatory  barriers  to  products/services  

2.  Standards  for  DER  (including  storage)  and  for  services    

3.  Network  technology  to  manage  RE  penetra-on/integra-on  

4.  RE  forecas-ng  techniques  and  storage  technology  

5.  Business  models  for  distributed  energy  resources  

6.  Alterna-ve  pricing  approaches  for  DER  including  storage  

Scope  

Medium  

Medium  

High  

High*  

High  

High  

*  Storage  only  as  RE  forecas-ng  adequately  covered  by  exis-ng  projects  –  to  be  reassessed  in  2016  

We  will  invest  in  projects  and  measures  that    •  Are  complementary  to  the  projects  iden-fied  in  the  Stocktake  •  Help  progress  technical  or  commercial  readiness  •  Align  to  the  IRG  focus  areas  above  •  Meaningfully  improve  cost  effec-ve  renewable  energy  

2015  

2015  

2017  

2017  

2017  

2015  

Timing  

Exis3ng  Projects  IRG  focus  areas   Influence?  

16

How  to  Apply  •  Determine  which  ini-a-ve  or  program  you  are  applying  under  

(Currently  open  programs  are  the  Emerging  Renewables  Program  and  Advanced  Step  Change  Ini-a-ve  Program)  and  read  the  appropriate  program  guidelines  and  informa-on  manual  

•  Call  our  Business  Development  team  on  +61  2  6243  7054  to  discuss  your  project’s  suitability  

•  Develop  your  proposal  

•  Submit  your  proposal  on  ARENANet,  our  grants  management  system.  

•  Your  proposal  will  be  assessed  in  line  with  our  applica-on  assessment  process.  

•  We  will  provide  you  with  feedback  and  informa-on  about  the  next  steps.  

17

   Want  to  know  more?  

 Arena.gov.au    

       ARENA  at  LinkedIn  @ARENA_aus  on  TwiXer  

 Subscribe  to  updates:  arena.gov.au/

subscribe