Ergon Energy s experience in meeting the challenges of increasing peak demand and customer expectation.

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1 Ergon Energy s experience in meeting the challenges of increasing peak demand and customer expectation. Smart Utilities 2012, Melbourne Glenn Walden GM Emerging Opportunities & Technology Development Ergon Energy glenn.walden@ergon.com.au

2 Ergon Energy Regional Queensland electricity distributor and non-compete retailer Revenue $2.2b Network Area Serviced 1.7 million km2 Over 680,000 customers Total Assets $9.02b 150,000 kms of power lines 4630 staff 33 Remote Power Stations $7.5B investment in the Regulatory Period

3 Our SWER Network 65,000+ km of SWER line 25,000 customers Predominantly built in 70 s and 80s 26/11/2012 3

4 DEMAND IS DEAD! - How the war was won.

5 DEMAND IS DEAD! - How the war was won. 2,700 16,000 2,600 15,500 2,500 15,000 2,400 14,500 14,000 2,300 13,500 2,200 13,000 2,100 12,500 2,000 12,000 System Demand (MVA) System Energy (GWh)

6

7 DEMAND IS DEAD or is it?

8 It s all about beer Demand Load Market Network Capacity it s all the same isn t it! It s complex you must be bullshitting me! It s about how much (kwh) AND how fast (kw) AND where AND when AND how many, want beer The breweries (market) have capacity but here s a pub (network) with no beer. A little bit, slowly vs lots, very fast Have people really changed? They still like beer!

9 The challenge Increasing customer expectations for affordability, service and choice (esp. information on and management of energy use/cost) Mitigate peakier loads to improve supply costs capital spend and asset capital efficiency Life extension and performance improvement of aging and stressed networks Reduced environmental impacts including facilitating renewables connection On a highly radial (70% of zone substations and 50% of feeders) and very sparse network (4.2 vs 24 customers per km)

10 The big issue Rampant network peak demand (kw) growth, drives kw >> capacity investment >> costs (ROI, Dep'n, Opex) >> price Production costs Emissions cost Network investment Peak demand growing at double the rate of energy growth More than half costs are fixed Stop it or you ll go broke adopt a new business approach Under utilized asset Get smart about flattening the curve 26/11/

11 Our approach Shape the load as well as just meeting it.. reduce peak demand Develop non-traditional & enhanced traditional solutions Take a role beyond the meter Provide more customer choice and accountability Integrate behavioural & technological interventions Lower costs, lower emissions Move from concepts, showcases, trials and pilots to product solutions Engage, engage, engage

12 Get Smarterer Resilient network establish a sound foundation network for the foreseeable future Smart grid build assets smarter move from a transport business to an interconnection business. Smarter assets; smarter asset & load management Distributed energy resources.. demand management, energy storage, energy management & renewables integration. 26/11/

13 Smart Grid Smart Networks Distributed Energy Resources Customer-side application Utility-side application Energy intermediaries Demand response Microgrid Network of the future 11 Energy conservation Volt-Var optimisation Enabled applications 9 Distributed generation Distributed storage 7 6 Plug-in electric vehicles Energy management Fundamental applications 5 4 Substation automation Distribution management Foundation 3 2 Automated demand response Meter data management 1 Smart meters

14 Smarterer Grid Energy Sense Communities Enhanced Planning CVR/VVR Dynamic feeder rating Load transfer Contingency load conrol etc

15 12:30:00 AM 1:30:00 AM 2:30:00 AM 3:30:00 AM 4:30:00 AM 5:30:00 AM 6:30:00 AM 7:30:00 AM 8:30:00 AM 9:30:00 AM 10:30:00 AM 11:30:00 AM 12:30:00 PM 1:30:00 PM 2:30:00 PM 3:30:00 PM 4:30:00 PM 5:30:00 PM 6:30:00 PM 7:30:00 PM 8:30:00 PM 9:30:00 PM 10:30:00 PM 11:30:00 PM Average Demand (kw) Demand Reduction Bright Point - Afternoon air-con control test One weekend comparison /03/2009 (Control Day - Sunday), 12 Apartments /03/2009 (Sample - Saturday), 19 Apartments 3.00 Ave. demand 2.99 kw 2.50 C&I NDM Residential a/c and pool pumps Isolated communities New business models & packages 45MVA reduction DM Strategy and DR Potential Review Midday data 15/4/09 Temp = 32 o C Rel. Hum'y = 54% Feels like = 36 o C Ave. demand 1.97 kw Randomised start of control within first 30 minutes of control period initiation Control period: Midday to 50% load reduction 26/11/ /11/

16 DER Focus Demand Reduction Network Carbon Reduction Community Energy Conservation Customer

17 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 50,000 Renewables 40,000 30,000 Integration Solar Bonus Scheme 20,000 60,000 10,000 0 Network augmentation Change transformer taps Increase transformer Split LV network Increase LV conductor size Voltage Regulated Distribution Transformer LV StatCom PV Firming V/VAr control / energy management Grid Smart PV V/VAr control

18 Power at Recloser (kw) Distributed Storage Time 12 Of Day RUSS: 6kW / 18kWh Liion; residential support RUSS & GUSS are SCADA connect and have Volt/VAr control GUSS: 25kW / 100kVA Liion; grid support; moving to pilot deployment

19 Energy Management Residential energy management HANmmm! C&I - Automated Demand Response OpenADR DRMS & Portfolio Optimiser

20 Market Share (% of total stock) Electric Vehicles 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% ICE HEV PHEV BEV Year EV Diffusion and Impacts Modelling Customer EV Trials Smart Charge / Vehicle to Grid

21 Enabling Technology Communications & OT Sensing & measurement Condition monitoring Distributed intelligence controller

22 A distributed energy future? Short term (now) Niche applications 1960s in Rise specialised of Grids remote locations (very likely) Medium term (3-5 years) Selected application in regional networks (likely) Long term (10 years) Widespread application on city fringe networks possible ? ? Pre 1920 Independent Energy We want these solutions to be available 2020s?? Rise of Distributed Energy Low cost storage and PV two possible themes The Cliff the end of the network as we know it may be sooner then expected??? The Looking Glass a mosaic of targeted solutions to electricity and energy supply 2010s Rise of Smart Grid 26/11/

23 Sliding Doors Scenario

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