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How will your neighbourhood share energy?

Heather Smith 6 November 2021

Coalition for Community Energy

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Centralised Electricity System

OR

Network of Small Systems (Microgrids)

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Transition is messy – and complex

Climate change forces us to accelerate., to a tipping point of sorts

All over the internet we find images of destructive change, winners and losers, revolution

Climate change imperative. Transition needs to be rapid

Innovation/transition perspective. Transformative change involves creative destruction (Schumpeter)

Energy is a society-wide system, fundamental to societal structure

We are facing a revolution with an unknown outcome

Paradigmatic shifts

Those steeped in the paradigm struggle to move out of it

New paradigm often emerges in multiple places at the same time

Socio-technical transitions

Niches need to flourish, the regime falls apart and re-creates itself

Path dependence of systems

Complex systems evolve, adapt, self-organise, have redundancy, can shift to a new stable state.

Innovation Framework (* chosen as the main conceptual foundation *)

An opportunity to create value needs to be designed…

By a team with diverse skills and perspectives…

With a business model / resources / authority / social support / legitimacy

Design for transition can be a catalyst for change

Interventions, designing for…

Government, Market and Community to unlock public, private and collective value

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http://nemdashboard.com.au/

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https://opennem.org.au

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Postcode 3922 – Philip Island

Stats for September 2021

1,815 installations

~ 38% homes

(+ some businesses)

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Phillip Island

– sunny week in October

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15% solar in 2020

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6.3% solar

23% solar

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What could self-reliance look like?

More Solar

Diverse Generation

Eg Wind

Energy Efficiency

Prepare for new loads..

Electric Vehicles

Getting off Gas

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What could sharing look like?

Shift Loads eg Hot Water

Solar Surplus

Control new load to best use surplus renewables

Source external renewables (link to market)

Storage to use surplus

Some sharing happening already – 50%?

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Phillip Island Zone Substation

26 MVA

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Noosa

Zero Emissions Noosa battery report

SOURCES OF VALUE

Matching supply with demand

demand management
freeing up capacity
deferred and avoided investment in network and centralised generation
local voltage support

Responding to sudden changes in the supply / demand balance.

Unlocking commercial value would involve access to Frequency Control markets and the capability to bid appropriately.

Power quality

there may be local power quality benefits. The possible issues and the control arrangements to unlock benefits would need to be investigated further.

Back up supply to serve loads in emergencies and improve reliability
Non-market (societal) value.

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Supply match demand

Your charges – value stack

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Benchmarks - Cost

MyTown Microgrid | Regional and Remote Communities Reliability Fund - Microgrids

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Back up supply

residential

(behind the meter)

business

(behind the meter)

Local is best!

Unbeatable!

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Activities that create sharing value

Energy Efficiency

make loads, smart, flexible and controllable at the same time

New loads – incentives to ensure “smart, flexible and controllable“
Shift loads – eg hot water

Another form of storage

Storage Capacity
Access to wholesale market incentives (when required)

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Retail options and business models

REVENUE SHARING

(inc virtual power plants)

Managing Supply Chain

Manage Customer Value

SUBSCRIPTION – Alkimos Beach
LEVERAGE CUSTOMER DATA
HIDDEN REVENUE

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Retail options and business models – cont.

Change the cost of kWh

FLAT RATE (take the risk)
NO FRILLS
FREEMIUM
ROBIN HOOD
ADD ON

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Retail options and business models – cont.

Manage high capital costs

RENT INSTEAD OF BUY
PAY PER USE
FRACTIONAL OWNERSHIP
GUARANTEED AVAILABILITY

Monopolies

Investment