smart regulation for a 21st century energy system_australian clean energy summit 2017

Smart Regulation for a 21st Century Energy System Paul Italiano – CEO, TransGrid CEC Australian Clean Energy Summit 18 July 2017

Australian Clean Energy Summit 2 /

Unlocking Australia’s Energy System of the Future

Backbone of the Australian National Electricity Market


NSW

QLD

SA

TAS

VIC

• The NEM encompasses five interconnected regions: NSW, Queensland, Victoria, Tasmania and South Australia • NSW represents 32% of Australia’s population, 34% of energy consumed in the NEM and is one of only two

states with a AAA credit rating

Disruption at the source of energy


The Australian Energy Market Operator (AEMO) projects: • Coal generation will reduce from

74% of National Electricity Market (NEM) generation in 2016–17, to 24% in 2035–36.

• Wind and solar currently account for around 5% of the generation in the NEM.

• Australia will need to connect up to 22 GW of new large-scale wind and solar generation before 2036.

TransGrid Advisory Council - June 2017 5 /

Australia’s renewable energy potential

• The tristate border regions of New South Wales, Victoria and South Australia are home to geographic characteristics which create an immensely attractive zone for large scale, renewable energy developments.

• Areas in western New South Wales receive significant and consistent solar exposure, and have land use mix that would enable the installation of large-scale solar PV generation.

• Conversely, north western Victoria has a number of highly prospective pockets of high-wind speeds which would support commercial wind generation.

Australian Clean Energy Summit

Solar penetration in the German market

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3,000MW of wind in the area near the NSW-South Australian border

6,000MW of solar PV near Broken Hill in New South Wales

5,000MW of solar PV between Buronga and Hay in South-Western New South Wales

3,000MW of wind in north-western Victoria

3,000MW of wind near Broken Hill

5,000MW of solar PV near Tamworth in Northern New South Wales

5,000MW of solar PV near Wellington and Wollar in New South Wales Central West


Network configuration – Current (in construction) 330kV Transmission line

Connection point Proposed transmission line Proposed substation Existing substation

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132 kV Transmission line


Network configuration – Renewable Energy Hub connection 330kV Transmission line

Connection point Proposed transmission line Proposed substation Existing substation

132 kV Transmission line

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The Texas example


• More than 7,000MW of wind capacity installed in Texas from 2006-09

• Grid experienced significant constraints, resulting in curtailed generation.

• Public Utility Commission of Texas established five "competitive renewable energy zones" and authorized transmission expansion projects that in total would allow 18,500 MW of wind power to be transported across the state

• These transmission projects led to a significant decrease in wind curtailments and wholesale prices.

• As of the end of 2013, the scheduled program completion date, all of the CREZ projects had been energized, at a total cost of $7 billion.

Source: US Energy Information Administration

Reduction in curtailed generation and lower prices


Source: US Energy Information Administration

The paralysis of ongoing regulatory reviews


• Since 2013, the NEM has experienced:

49 Market Reviews and Advices

98 proposed rule changes

13 Reviews by the AER

Source: AEMC, AER

State of play in Australia


1. The world’s biggest resource of energy in proportion to population

2. Astoundingly high energy prices for consumers

3. A plethora of ongoing reviews and enquiries

4. No coherent goal to work toward as an industry

smart regulation for a 21st century energy system_australian clean energy summit 2017

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