simon currie - norton rose fulbright - global trends in deployment and regulation
Post on 15-Apr-2017
512 Views
Preview:
TRANSCRIPT
Local Energy and Microgrids
Global trends in deployment and regulation
Simon Currie
Partner, Global Head of Energy
Norton Rose Fulbright Australia
28 April 2016
4 Local Energy and Microgrids - Global trends in deployment and regulation
• The Low Carbon Microgrid working group currently consists of the following
companies:
• ABB
• EDF
• Engie
• Eskom
• First Solar
• Schneider Electric
• NRG Energy
• CLP power
Example: Island and remote communities
Local Energy and Microgrids - Global trends in deployment and regulation9
10 case studies – average annual electricity generation, % renewable vs fossil
Drivers of change – ‘the renewable microgrid’
Local Energy and Microgrids - Global trends in deployment and regulation10
Costs
“Economics was a
primary driver. Cost
of power production
far exceeds
revenues.”
Mr. Juergen
Zimmerman, Coral
Bay
- Falling renewables
cost
- High fuel volatility
Environmental
considerations
Communities expressed
concern over the future
impacts of climate
change, the
corresponding desire to
take action and reduce
carbon emissions, and
their deep cultural
connection to land and
nature.
- Emissions reduction
Abundant local
resources
“All communities are
vulnerable to imported
fuels; we have a vast
[local]
wind resource.”
Mr. Glenn Ross,
Falkland Islands
- Drive to electrify
remote communities
Challenges
11
1. Grid Stability• phased integration approach, allowing operators to see how to initially bring a small amount of
renewable technologies online;
• work with small amount while balancing the system, and then continue to step up their renewable penetration by integrating more resources alongside energy storage and advanced controls.
2. Remote Location• transporting new technologies and equipment
• Getting construction crews on-site. Often, only one or two operators live nearby, so if major technical issues arise, teams must fly in to address the problems.
3. Administrative and bureaucratic requirements• A combination of government grants and utility equity has funded the addition of renewables in many
Pacific Islands.
• communities faced challenges stemming from fund or grant application processes, onerous documentation requirements, and the need to align bureaucratically imposed requirements with the overall energy transition timeline.
Local Energy and Microgrids - Global trends in deployment and regulation
Lessons learned
12
• Renewable microgrids can reduce costs
• Enhanced microgrid system resiliency and stability
• Energy efficiency is an important component of a renewable microgrid transition
• Storage is key component of largely renewable island and remote community microgrids
Local Energy and Microgrids - Global trends in deployment and regulation
Education leading the way…
Local Energy and Microgrids - Global trends in deployment and regulation13
• Campuses interest in improving the ability to measure and reduce energy usage by tying together a campus’s power source, transmission, distribution and consumption into one system.
• Implemented at various universities in the U.S., including Illinois Institute of Technology, Howard University (first microgrid in Washington D.C.) and UC San Diego.
• University of Queensland installed a microgrid that will save approximately 1750 tonnes of greenhouse gas emissions annually - equivalent to taking 335 cars off the roads each year.
• CIT Bruce campus
14
• Technological innovation, combined with aging infrastructure, extreme weather events, and system security and resiliency needs, are leading to changes in how electricity is generated, distributed, managed and consumed.
• Under the REV strategy, New York is spurring clean energy innovation, bringing new investments into the State and improving consumer choice and affordability.
• The REV initiative will lead to regulatory changes that promote more efficient use of energy, deeper penetration of renewable energy resources such as wind and solar, wider deployment of “distributed” energy resources (such as micro grids), and storage.
• REV goals by 2030:
- 40% reduction in GHG emissions from 1990 levels;
- 50% generation of electricity; and
- 23% decrease in energy consumption in buildings from 2012 levels.
Local Energy and Microgrids - Global trends in deployment and regulation
Reforming the Energy Vision (REV)
Why Energy Transformation is Like Fixing the Plane
in Midair
Local Energy and Microgrids - Global trends in deployment and regulation15
Transforming power markets is not
easy; you cannot put the system on
pause while everyone collectively
re-arranges the parts.
To be successful, three
developments must move forward
together:
• Regulation needs to reward
utility performance
• Reliability has to become a
shared responsibility
• Risk must be reduced through
increased network participation
Integrated, intelligent microgrids
offer a long term path to deliver
clean energy for communities while
maintaining reliability and the
critical role of the utility.
Regulation
16
• Risks relating to market design and unfit regulatory regime – compatibility with current design?
• Disruptive technologies driving market reform
• Lack of a clear definition for micro grids –what is a microgrid?
• Distribution network?
• Generator?
• supplier/retailer?
• Competition with public utilities – are utilities entitled to transition to fringe of grid loads to standalone power systems (SPS)?
• Interconnection regulations and procedures
• Progressive introduction of policy and regulatory incentives aimed at fostering microgrid development and implementation.
Local Energy and Microgrids - Global trends in deployment and regulation
Regulatory Reform
17
Future-proofing in Australia’s Electricity Industry Project (FPDI)
• FPDI intended to inform policy and regulation reform aimed at alleviating barriers to the integration of renewable energy and demand management.
• Changing shape of energy system increasing need for market reform
• Supply system moving from highly linear, centralised system of assets, markets, information, regulatory relevance and authority, and planning to a decentralised customer focused energy ecosystem
The Future
• Virtual net metering? Introduce more cost reflective pricing embedded generation output?
• Interconnection – extend the application of Chapter 5?
• Any changes must reflect community expectations for sustainability
• Changes to how Distribution Network Businesses structure pricing
Local Energy and Microgrids - Global trends in deployment and regulation
top related