Presentation I gave at the Future Grid Forum in Sydney on 18 March 2015. Introducing ARENA's view on the challenges with integrating renewable energy and grids, and ARENA's draft investment priorities.
1. 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. 2
Tradi-onal
Electricity
Industry
One Way System
Generators
Distribu3on
Grids
Transmission
Grid
Residen3al
Customers
Commercial
Customers
Industrial
Customers
3. 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. 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. 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. 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. 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. 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. 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. 10
ARENA
across
the
Innova-on
Chain
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. 11
Aim
is
to
create
valuable
knowledge
and
improve
technology/commercial
readiness
Lessons
learned
Technology/
commercial
readiness
INVESTMENT
PRIORITIES
ResultsOperation
PROJECT
1
PROJECT
2
PROJECT
3
Quality
Control
Analysis
Synthesis
Knowledge
ü De-risk projects
ü Lowers costs
ü Reduces barriers
12. 12
Integra-ng
Renewables
and
Grids
Developing
renewables
and
enabling
technologies
Applying
renewables
to
markets
Challenges
Policy
Technical
Commercial
Knowledge
13. 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. 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. 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. 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. 17
Want
to
know
more?
Arena.gov.au
ARENA
at
LinkedIn
@ARENA_aus
on
TwiXer
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