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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, 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 …

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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  • 1. King  Island:  Case  Study   Remote  Area  Power  Supply   Sydney  Marriot  17-­‐18  March  2014   Simon  Gamble    
  • 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. 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 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. Remote  Area  Power  Systems   Drivers  for  Renewable  Energy  
  • 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 •  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. 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. King  Island     System  and  Performance    
  • 10. King  Island  Loca@on   Source:  Google  Earth  
  • 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. King  Island  Power  StaFon   Our  soluFon  test  bed  –  History  of  development  
  • 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. 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. 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. Example  HMI  -­‐  Annunciator  Display  
  • 17. KIREIP  :  Physical  enablers  
  • 18. KIREIP  :  In-­‐line  Biodiesel  Blending  
  • 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. KIREIP: Diesel-UPS : October 2012
  • 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 ConstrucFon  of  Bafery  building  
  • 23. BaDery   InstallaEon   23
  • 24. KIREIP  :  Demand  Side  Response    System  fully  operaFonal   Site  gateway   Smart  switches   Provides  monitoring  &  control  
  • 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. Smart  Grid  Dispatches  during  Zero  Diesel   08/03/2014  
  • 27. Customer  smart  phone  app  
  • 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 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. 100%  Renewable  including  use  of  biofuels  
  • 31. 100%  Renewable  with  use  of  RE  generaFon  only  
  • 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. Further  informaEon:   Hybrid  Off-­‐Grid  Power  Systems   Simon  Gamble   simon.gamble@hydro.com.au   www.kireip.com.au   Thank  you  

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