Residential Air Conditioning & Peak Electrical Demand

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1 Residential Air Conditioning & Peak Electrical Demand Mark Paterson, ENERGEX Limited Demand Management Development & Projects Manager 1

2 Peak Demand Peak Demand Management 2

3 The leaders of the future are going to have three traits... A deep sense for potential new markets A great fingertip touch with technology Understand ways to capitalise on these everywhere in the world *Jeff Immelt paraphrased from The Articulate Executive in Action (2005) 3

4 Peak Demand is surging demand for electricity during extremely brief periods of the year 1-2% of year % demand surge Annual load duration curve It s a growing global issue that s not going away 4

5 Peak Demand Management is achieving more intelligent, sustainable control of electrical networks and demand for electricity MW Temperature Demand Temp 0 5 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 A critical component in any genuine move to energy sustainability 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

6 ENERGEX Limited Community-owned electricity distributor for South East Qld $6B+ assets 1.3 million customers 36,000 km overhead lines 13,000 km underground cables 249 substations 6

7 Context Joint letter to DEWHA from: Ergon Energy ENERGEX Limited Integral Energy ETSA Utilities Western Power Requesting a significant increase in the focus on A/C unit demand management capability under MEPs framework We envision Australia as the global leader in this field and will work together to achieve this. 7

8 Annual peak demand growth in SEQ approx. ~200% energy volume growth 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Energy growth (%) Demand Growth (%) 8 Peak Demand drives network investment Largest component of bill increases in recent years (and growing)

9 Residential air conditioning is becoming a critical challenge for electrical networks around the world 9

10 Short, Intense Peaks in Demand ALBANY CREEK / ARANA HILLS DEMAND CURVE Load (MVA) Two consecutive summer days Only difference is ambient temperature 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 Time of Day 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

11 Short, Intense Peaks in Demand ALBANY CREEK / ARANA HILLS DEMAND CURVE Load (MVA) Two consecutive summer days Only difference is ambient temperature 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 Time of Day 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 17MVA

12 Viable Options AS4755 series of Australian Standards now published a world first! Extensive trial work conducted nationally: ETSA Utilities (>1,000 homes) ENERGEX (>1,500 homes) Western Power Ergon Energy Many learnings from these trials informed drafting of AS4755 standards 12

13 What about Comfort? This is NOT about turning off air conditioners! Sophisticated demand A/C demand management is designed to minimise any perceivable change Trials have universally demonstrated negligible impact on residential comfort (typically 85-90% satisfaction!) Haven t noticed a difference, I think it s a good initiative. Keep up the good work. Would be happy to put the other air conditioner in the trial. 13

14 The Future for A/C 14 Air conditioning demand management is one of the KEY issues for electrical networks in Australia The Australian public will not accept continuous peak demand-driven tariff increases Widespread A/C demand management will play a critical part of avoiding or minimising network events Mandatory legislative requirement for compliance of all A/C units with AS Smarter, more intelligent A little by a lot of people gives a big impact * ETSA Utilities

15 Imperatives for Utilities Ownership. Appointment of specific Federal and State entities to drive demand management implementation and enforcement DM-Ready. Legislated mandatory requirement for compliance of A/C units with AS (under MEPs framework) Pricing. New tariff structures reflecting the true cost of supply electricity to extremely peaky loads Unit Efficiency. Strong support for MEPs work strengthening A/C energy efficiency standards Application Efficiency. Need for an Australian Standard addressing residential A/C design and installation (for adoption under BCA) 15

16 The leaders of the future are going to have three traits... A deep sense for potential new markets A great fingertip touch with technology Understand ways to capitalise on these every place in the world *Jeff Immelt paraphrased from The Articulate Executive in Action (2005) 16

17 17

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