King	
  Island:	
  Case	
  Study	
  
Remote	
  Area	
  Power	
  Supply	
  
Sydney	
  Marriot	
  17-­‐18	
  March	
  2014	
...
PresentaFon	
  Overview	
  
1.  Who	
  is	
  Hydro	
  Tasmania?	
  
2.  What	
  are	
  our	
  remote	
  area	
  credenFals...
Hydro	
  Tasmania	
  -­‐	
  Overview	
  
•  Government	
  Business	
  Enterprise,	
  owned	
  by	
  the	
  State	
  of	
  ...
4
Hydro	
  Tasmania	
  –	
  Off-­‐Grid	
  experFse:	
  
• Responsible	
  for	
  generaFon,	
  distribuFon	
  and	
  retail	...
Remote	
  Area	
  Power	
  Systems	
  
Drivers	
  for	
  Renewable	
  Energy	
  
Drivers	
  for	
  Renewable	
  Energy	
  
Largely	
  Economic	
  
•  Most	
  common	
  drivers	
  for	
  RE	
  in	
  off-­‐...
7
•  Renewable	
  Energy	
  technologies	
  can	
  compete	
  with	
  diesel	
  –	
  it’s	
  a	
  no	
  brainer	
  right?	...
Renewable	
  Energy	
  IntegraFon	
  Pathway	
  
“Natural	
  System	
  TransiFon	
  Points”	
  
General	
  observaFons	
  ...
King	
  Island	
  	
  
System	
  and	
  Performance	
  	
  
King	
  Island	
  Loca@on	
  
Source:	
  Google	
  Earth	
  
11
King	
  Island	
  –	
  Hybrid	
  Off-­‐Grid	
  System	
  
Achievements	
  to	
  Date	
  
PopulaFon	
  approx.	
  1,600 	...
King	
  Island	
  Power	
  StaFon	
  
Our	
  soluFon	
  test	
  bed	
  –	
  History	
  of	
  development	
  
2010:	
  Dynamic	
  Resistor	
  
EffecFve	
  Spill	
  Management	
  
13
•  Resistor	
  converts	
  wind	
  spill	
  to	
  r...
King	
  Island	
  Renewable	
  Energy	
  
IntegraFon	
  Program	
  (KIREIP)	
  
2010	
  -­‐	
  2013	
  
TargeFng:	
  
>65%...
KIREIP	
  :	
  Control	
  System	
  
•  An	
  advanced	
  automated	
  control	
  system	
  purpose	
  built	
  for	
  hyb...
Example	
  HMI	
  -­‐	
  Annunciator	
  Display	
  
KIREIP	
  :	
  Physical	
  enablers	
  
KIREIP	
  :	
  In-­‐line	
  Biodiesel	
  Blending	
  
•  Provides	
  funcFonality	
  to	
  support	
  the	
  further	
  addiFon	
  of	
  renewable	
  
energy	
  and	
  energy	
...
KIREIP: Diesel-UPS : October 2012
21
MulFple	
  Roles:	
  
• Power	
  response	
  
• Provide	
  raise	
  &	
  lower	
  
reserve	
  	
  
• Block	
  shiting	
...
22
ConstrucFon	
  of	
  Bafery	
  building	
  
BaDery	
  
InstallaEon	
  
23
KIREIP	
  :	
  Demand	
  Side	
  Response	
  
	
  System	
  fully	
  operaFonal	
  
Site	
  gateway	
  
Smart	
  switches	...
25
KIREIP	
  :	
  Demand	
  Side	
  Response	
  
Real	
  Fme,	
  dynamic	
  aggregated	
  load	
  control	
  (<1,000ms)	
 ...
Smart	
  Grid	
  Dispatches	
  during	
  Zero	
  Diesel	
  
08/03/2014	
  
Customer	
  smart	
  phone	
  app	
  
KIREIP	
  :	
  Recent	
  Performance	
  
Record	
  performance	
  since	
  D-­‐UPS	
  final	
  commissioning	
  
• 	
  >	
 ...
29
King	
  Island:	
  Achievements	
  to	
  Date	
  
Current	
  system	
  provides	
  1.5ML	
  diesel	
  savings	
  p.a:	
...
100%	
  Renewable	
  including	
  use	
  of	
  biofuels	
  
100%	
  Renewable	
  with	
  use	
  of	
  RE	
  generaFon	
  only	
  
32
•  System	
  integrator	
  and	
  Implementer	
  
•  Offer	
  a	
  complete	
  integrated	
  soluFon	
  for	
  diesel	
 ...
Further	
  informaEon:	
  
Hybrid	
  Off-­‐Grid	
  Power	
  Systems	
  
Simon	
  Gamble	
  
simon.gamble@hydro.com.au	
  
w...
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Simon Gamble, Hydro Tasmania - CASE STUDY | King Island: Maximising renewable energy to minimise operating cost

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Simon Gamble, Manager Small Renewable Asset Development, Hydro Tasmania delivered this presentation at the Remote Area Power Supply Conference. The conference brings together remote communities, mine sites and industrial operations and the renewable energy sector to outline the opportunities and barriers for solving off-grid energy challenges with renewable and hybrid energy solutions.

For more information, please visit http://www.informa.com.au/remotepower


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Simon Gamble, Hydro Tasmania - CASE STUDY | King Island: Maximising renewable energy to minimise operating cost

  1. 1. King  Island:  Case  Study   Remote  Area  Power  Supply   Sydney  Marriot  17-­‐18  March  2014   Simon  Gamble    
  2. 2. PresentaFon  Overview   1.  Who  is  Hydro  Tasmania?   2.  What  are  our  remote  area  credenFals?   3.  General  comments  regarding  RE  in   remote  areas   4.  King  Island  Case  Study  –  recent   performance   5.  Next  steps   2
  3. 3. Hydro  Tasmania  -­‐  Overview   •  Government  Business  Enterprise,  owned  by  the  State  of   Tasmania.   •  Australia’s  largest  clean  energy  producer:   o  $5.1  billion  worth  of  assets,   o  2  281  MW  of  hydro-­‐electric  capacity  in  Tasmania,     o  45%  of  Australia’s  renewable  energy  generaFon.   •  Revenue  earned  through  trading  electricity  and  energy   products  in  the  NaFonal  Electricity  Market.     •  Electricity  retail  business  Momentum   •  350  strong  consulFng  business  Entura.     3
  4. 4. 4 Hydro  Tasmania  –  Off-­‐Grid  experFse:   • Responsible  for  generaFon,  distribuFon  and  retail  in  the   Bass  Strait  Islands   •  Serving  industrial,  commercial  and  residenFal   customers   •  Responsible  for  system  security  and  reliability  –   keeping  the  lights  on  and  factories  operaFng   • Developer,  Owner  and  Operator  of  leading  Off-­‐Grid   system  on  King  Island  –  our  test  bed   • Entura  :  Leading  consultant  to  Aid  Agencies  and  UFliFes,   including:       •  Pitcairn,  Chatham,  Cape  Barren  Islands   Hydro  Tasmania   Remote  Area  Power  Systems  Capability  
  5. 5. Remote  Area  Power  Systems   Drivers  for  Renewable  Energy  
  6. 6. Drivers  for  Renewable  Energy   Largely  Economic   •  Most  common  drivers  for  RE  in  off-­‐grid  systems:   o  ReducFon  in  LCOE   o  Increase  in  operaFonal  hours  (not  common  in  Australia)     o  Emission  reducFon   o  RE  targets   o  R&D  –  Off-­‐Grid  systems  provide  excellent  test  beds     King  Island  focussed  on  innovaFon  and  demonstraFon  underpinned  by  reducFons   in  operaFng  cost  and  increased  reliability   Though  not  a  driver  -­‐  Improved  reliability,  security,  power  quality  is  an   outcome!   6
  7. 7. 7 •  Renewable  Energy  technologies  can  compete  with  diesel  –  it’s  a  no  brainer  right?   –  At  what  point  is  it  no  longer  cost  effecFve  to  add  more  RE?   •  Is  ROI  main  driver?  Is  NPV?   –  But  adding  high  levels  of  RE  is  challenging:   •  Managing  variability,  intermifency  –  requires  advanced  control,  enablers   •  Adds  system  complexity,  risk,  capital  cost   o  Trade  off:  significant  upfront  capital  cost  vs  lower  ongoing  operaFng   o  UFlisaFon  (served  MWh)  of  RE  is  criFcal  (not  MWp)   1.  First  challenge  is  system  security  /  reliability   2.  then  increased  RE  uFlisaFon   3.  then  RE  recovery  (where  cost  effecFve)   LCOE  ReducFon  =  Diesel  Displacement     But  at  what  cost?  
  8. 8. Renewable  Energy  IntegraFon  Pathway   “Natural  System  TransiFon  Points”   General  observaFons  (a  view  on  low  /  medium  /  high  penetraFon):   1. Appropriate  diesel  selecFon   2. Limited  renewable  energy  –  within  envelope  of  normal  diesel  operaFons   3. Increased  RE  requiring  altered  system  operaFons  -­‐    (Control  &  Curtailment)   4. Sufficient  RE  to  result  in  breach  of  raise  reserve  provisions  or  to  create  surplus  –   (further  enablers  to  increase  penetraFon/recover  e.g.  resistor  /  storage)   5. RE  beyond  min  (or  max)  load  to  allow  diesel-­‐off  operaFon  –  (further  enablers  to   provide  system  security  and  stability  in  absence  of  diesel)   • IntegraFon  is  central  to  secure  /  reliable  performance  and  high  RE  uFlisaFon   • Biofuel  replacement  of  mineral  diesel  could  occur  at  any  stage   • Fuel  subsFtuFon  and  switching  should  be  considered   8
  9. 9. King  Island     System  and  Performance    
  10. 10. King  Island  Loca@on   Source:  Google  Earth  
  11. 11. 11 King  Island  –  Hybrid  Off-­‐Grid  System   Achievements  to  Date   PopulaFon  approx.  1,600    2.5MW  peak  load   •  6MW  diesel  generaFon   •  Expensive  to  operate   •  IncenFve  to  use  Renewable  Energy  
  12. 12. King  Island  Power  StaFon   Our  soluFon  test  bed  –  History  of  development  
  13. 13. 2010:  Dynamic  Resistor   EffecFve  Spill  Management   13 •  Resistor  converts  wind  spill  to  raise  /   lower  reserve   •  Allows  diesels  to  run  at  minimum  load   •  Controls  system  frequency   •  Low  capital  cost   •  AddiFonal  diesel  saving  
  14. 14. King  Island  Renewable  Energy   IntegraFon  Program  (KIREIP)   2010  -­‐  2013   TargeFng:   >65%  RE  annual  contribuFon   100%  RE  instantaneous   >95%  GHG  reducFon   KIREIP  has  demonstrated  that  higher  levels  of  RE  contribuFon  are   achievable,  reliable  and  secure;  and  cheaper  than  diesel  alternaFves   InnovaFon  award  2013  
  15. 15. KIREIP  :  Control  System   •  An  advanced  automated  control  system  purpose  built  for  hybrid  systems:     •  capable  of  managing  RE  and  Diesel  genera@on  AND  enablers   •  Very  flexible:  handles  Wind,  Solar,  Baferies,  Flywheels,  Demand  response   •  Very  capable:  Securely  manages  high  penetra@on  of  renewable  energy  –  from   100%  diesel  to  100%  RE  and  all  states  in  between  –  all  fully  automated   •  Very  adaptable:  Able  to  be  installed  and  used  on  all  other  off-­‐grid  diesel  systems  
  16. 16. Example  HMI  -­‐  Annunciator  Display  
  17. 17. KIREIP  :  Physical  enablers  
  18. 18. KIREIP  :  In-­‐line  Biodiesel  Blending  
  19. 19. •  Provides  funcFonality  to  support  the  further  addiFon  of  renewable   energy  and  energy  storage  –  adds  system  security  at  high  RE  levels   •  Integrated  flywheel  and  generator  unit  –  directly  coupled  to  network   •  D-­‐UPS  (combined  with  resistor)  provides  the  funcFonality  of   convenFonal  diesels  without  the  conFnuous  fuel  cost  -­‐    allows  diesels  to   be  switched  off  if  desired  :  Zero  Diesel  OperaFon  (ZDO)   KIREIP  :  Diesel  UPS   2x1MVA  Flywheel  based  UPS   1.  Diesel  engine   2.  ElectromagneFc  Clutch   3.  Synchronous  Motor/Clutch   4.  Flywheel  
  20. 20. KIREIP: Diesel-UPS : October 2012
  21. 21. 21 MulFple  Roles:   • Power  response   • Provide  raise  &  lower   reserve     • Block  shiting   Results  in:   • Extended  zero  diesel   operaFon   • Delaying  addiFonal  diesel   generators   • Improved  fuel  efficiency   KIREIP:  Energy  Storage   3  MW  /  1.6  MWh  advanced  lead  acid   (Australia’s  largest  bafery  –  TBC  Nov  2013)  
  22. 22. 22 ConstrucFon  of  Bafery  building  
  23. 23. BaDery   InstallaEon   23
  24. 24. KIREIP  :  Demand  Side  Response    System  fully  operaFonal   Site  gateway   Smart  switches   Provides  monitoring  &  control  
  25. 25. 25 KIREIP  :  Demand  Side  Response   Real  Fme,  dynamic  aggregated  load  control  (<1,000ms)   •  Turning  aggregated  customer  demand,  distributed  PV  into  controllable  system   generaFon   •  Speed  and  dynamic  nature  of  response  allows  these  distributed  elements  to  be   used  for  ancillary  services  –  spinning  reserve   •  Also  provides:  aggregated  or  discrete  ULFS    
  26. 26. Smart  Grid  Dispatches  during  Zero  Diesel   08/03/2014  
  27. 27. Customer  smart  phone  app  
  28. 28. KIREIP  :  Recent  Performance   Record  performance  since  D-­‐UPS  final  commissioning   •   >  50%  diesel  saving  in  August  and  October  2013   •   >  160hrs  of  Zero  Diesel  OperaFon   •   >  40%  annual  RE  contribuFon  2013  (no  storage)  
  29. 29. 29 King  Island:  Achievements  to  Date   Current  system  provides  1.5ML  diesel  savings  p.a:    >$2.5m  opex  cost  reducFon   1.5ML  diesel  savings  p.a  :  >$2.5m  OPEX  cost  reducFon  
  30. 30. 100%  Renewable  including  use  of  biofuels  
  31. 31. 100%  Renewable  with  use  of  RE  generaFon  only  
  32. 32. 32 •  System  integrator  and  Implementer   •  Offer  a  complete  integrated  soluFon  for  diesel   displacement  in  off-­‐grid  systems,  including:   •  Automated  control  system   •  Experience  with  integraFon  “enablers”  (eg  Storage,   Flywheels,  Dynamic  resistors,  Demand  response)   •  ImplementaFon  of  Renewable  Energy  (RE)   technologies  (wind,  PV,  hydro)   •  Technology  agnosFc       •  SoluFon  tailored  to  clients  circumstances  and   requirements   •  OEM  sourced  via  compeFFve  tender   •  Full  spectrum  experience  in  asset  life-­‐cycle   (design,  develop,  own,  operate,  maintain)     •  Services  from  advisory  to  implementaFon   Hydro  Tasmania   Hybrid  Off-­‐Grid  SoluFon  Offering  
  33. 33. Further  informaEon:   Hybrid  Off-­‐Grid  Power  Systems   Simon  Gamble   simon.gamble@hydro.com.au   www.kireip.com.au   Thank  you  
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