Integrating renewables and grids
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The document discusses the integration of renewable energy sources into the electricity grid, highlighting various projects and initiatives aimed at improving the industry's capacity to manage distributed energy resources. It outlines key objectives, industry developments, and challenges, particularly in the Australian context, while also mentioning financial investments and partnerships by the Australian Renewable Energy Agency (ARENA). The document emphasizes the importance of addressing regulatory barriers and developing new business models to facilitate the transition towards more sustainable energy systems.
Integrating renewables and grids
- 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 Subscribe to updates: arena.gov.au/ subscribe