Introduction - TransGrid's 2014 Demand Management Innovation Forum
- 1. TransGrid’s 2014 Demand Management Innovation Forum Welcome Stephen Clark 24 September 2014 1 | The role of networks in a changing market dynamic September 2014
- 2. Introduction TransGrid’s 2014 Demand Management Innovation Forum was held on 24 September in Sydney. This is an annual event that TransGrid hold to discuss demand management activities both in our network and across the NEM. More than 60 people joined the conversation, ranging from large energy users, consumer advocates, researchers, technology providers and other networks. 2 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014
- 3. Changing market dynamic Uncertainty of demand Divergence of peak and average demand 3 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014 Revolution in network / energy services
- 4. A tale of two suppliers in a changing market 4 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014
- 5. New competitors 21 trillion photos posted in 2013 402,000 sold every day worldwide 1 million+ videos uploaded last year 5 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014
- 6. Our vision for demand management > Seamlessly integrated into the network planning process > Deep, liquid market available to respond to changing demand forecasts > Free flow of information between TransGrid and the market 6 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014
- 7. TransGrid’s 2014 Demand Management Innovation Forum Demand management at TransGrid Mal Coble 24 September 2014 7 | The role of networks in a changing market dynamic September 2014
- 8. Introduction TransGrid’s 2014 Demand Management Innovation Forum was held on 24 September in Sydney. This is an annual event that TransGrid hold to discuss demand management activities both in our network and across the NEM. More than 60 people joined the conversation, ranging from large energy users, consumer advocates, researchers, technology providers and other networks. 8 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014
- 9. A compelling value proposition Cost-effective deferral or avoidance of transmission network investment using non-network solutions allows reduced network charges for consumers Benefits are also possible throughout the electricity supply chain 9 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014
- 10. Non-network options in TransGrid’s revenue proposal TransGrid proposes pre-emptive network support to allow a non-network option for Powering Sydney’s Future > Network option could cost around $400million > Non-network option has the potential to defer a network option for a minimum of four years, and provide economic benefits with a present value of almost $70 million To grow the market and facilitate additional non-network projects, TransGrid has proposed a Demand Management Innovation Allowance of $18 million from 2014 to 2019 10 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014
- 11. Demand management defined 11 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014
- 12. Demand response can be effective > 350 megawatts Newcastle-Sydney-Wollongong for summer 2008/09 to defer network augmentation investment > 40 megawatts Sydney CBD for summer 2012/13 to mitigate network operational risk TransGrid has used demand management as a ‘network support’ alternative to network investment 12 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014
- 13. What is our experience? Innovation is needed to grow the demand response market 9 6 Requests for proposals were issued for 3 projects which were then deferred or cancelled The current low electricity demand growth environment is a prime opportunity to boost demand management innovation and procurement 13 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014 2 Request for proposal issued Response(s) received Network support procured
- 14. Past demand management innovation Load reduction trials and research projects with distribution network businesses Implementation of the latest technology in demand reduction solutions Gaining an in-depth understanding of industrial, commercial and residential energy consumers 14 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014
- 15. Demand management innovation proposal Collaboration Market understanding and development Technology trialling 15 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014
- 16. Views on demand management innovation Consumers generally supported TransGrid investing in finding ways to reduce energy demand and, potentially, the amount of capital investment needed 16 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014
- 17. Q & A 17 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014
- 18. Icebreaker activity Draw your vision for demand management into the future 18 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014
Editor's Notes
- #16: Our experience indicates that DM can be an effective alternative to investment in the network , objectives of our DMI proposal: contribute to facilitating a flexible demand management marketplace develop and grow the demand management market pinpoint key drivers of peak demand in NSW in order to better source demand response understand the electricity use of large consumers and surface their potential to provide demand management test and apply large-scale demand management tools and techniques identify and leverage the transmission-specific contribution to the demand management ecosystem We would like to target the 3 key areas Collaboration (September 2014 industry-wide forum, proposals to remove regulatory barriers) Market understanding and development (end use modelling, and a geospatial integration of demand response and network constraints. This project would bring together potential demand management providers and anticipated network constraints over the planning horizon in a map-style format) Technology trialling (iDemand project and associated research, energy auditing with large customers)
- #17: A value proposition test will be applied to each project before execution. Figure is taken from May_2014_TransGrid_Five_Year_Plan_Consultation_Summary.pdf