non network

1. 5 August 2014 Transmission Annual Planning Report 2014 Forum
2014 NSW Transmission Annual Planning
Report Forum
Non-network solutions
Mal Coble
Manager Network Support & Consultations

2. 5 August 20145 August 2014 Transmission Annual Planning Report 2014 Forum
Forum summary
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The 2014 NSW Transmission Annual Planning Report Forum was held on
5 August in Sydney.
This is an annual event that TransGrid holds to provide further detail on the
Transmission Annual Planning Report published at the end of June every
year.
More than 100 stakeholders gathered to hear speakers from TransGrid
and AEMO to discuss TransGrid’s future plans.
Representatives were from consumer advocacy groups, academics,
government, regulators, large energy users, infrastructure organisations
and energy providers.

3. 5 August 2014 Transmission Annual Planning Report 2014 Forum
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
 Non-network solutions can reduce the need for investment
in generation capacity and possibly distribution network
capacity
Generation RetailDistributionTransmission Consumers
Transmission Annual Planning Report 2014 Forum

4. 5 August 2014 Transmission Annual Planning Report 2014 Forum
Non-network solutions in
TransGrid’s revenue proposal
 TransGrid proposes pre-emptive network support to
allow a non-network option for Powering Sydney’s
Future
 A network option could cost around $400million
 A 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 $70million
 To grow the market and facilitate additional non-network
projects, TransGrid proposes a Demand Management
Innovation Allowance of $18million from 2014 to 2019

5. 5 August 20145 August 2014
What do we mean by demand
management ?
Transmission Annual Planning Report 2014 Forum

6. 5 August 2014 Transmission Annual Planning Report 2014 Forum
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:

7. 5 August 2014 Transmission Annual Planning Report 2014 Forum
What is our experience?
 The current low electricity demand growth
environment is a prime opportunity to boost demand
management innovation and procurement
Innovation is
needed to grow
the demand
response market
0
2
4
6
8
10
Request for
proposal issued
Response(s)
received
Network support
procured
Three projects where a request for
proposals was issued were
subsequently deferred or cancelled

8. 5 August 2014 Transmission Annual Planning Report 2014 Forum
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

9. 5 August 2014 Transmission Annual Planning Report 2014 Forum
Demand management innovation
proposal
Technology trialling
Market understanding
and development
Collaboration

10. 5 August 2014 Transmission Annual Planning Report 2014 Forum
Consumers’ views on demand
management innovation
Consumers generally
support TransGrid
investing in finding
ways to reduce energy
demand and,
potentially, the amount
of capital investment
needed

11. 5 August 20145 August 2014
iDemand
TransGrid will
shortly
commission a
battery storage
installation to
conduct demand
management
and storage
related research

12. 5 August 2014 Transmission Annual Planning Report 2014 Forum
Powering Sydney’s Future
A statement and a picture
Pre-emptive
network
support is
needed to
grow the
available
capacity

13. 5 August 2014 Transmission Annual Planning Report 2014 Forum
Demographics
Electric
Overall, the rate of
population growth
in the Powering
Sydney’s Future
project area is
projected to
remain well above
the NSW average
over the medium
to long term

14. 5 August 2014 Transmission Annual Planning Report 2014 Forum
Electric vehicles
The impact of electric vehicles will
depend on a multitude of parameters,
e.g. number of vehicles, vehicle type,
charge rate, time of recharge, kms
driven etc.

15. 5 August 2014 Transmission Annual Planning Report 2014 Forum
Energy efficiency
There are barriers
to energy
efficiency uptake
and options to
overcome them
Further research
is required to
quantify the
energy efficiency
potential

16. 5 August 2014 Transmission Annual Planning Report 2014 Forum
Next steps
 Request for proposals for demand response in
the second half of this year
 Proposing a demand management workshop in
September 2014 for interested stakeholders, to
capture a range of available options
 The Australian Energy Regulator invites
submissions on TransGrid’s revenue proposal by
8 August 2014 at aer.gov.au
TransGrid intends
to procure
demand response
for Powering
Sydney’s Future
as early as
summer 2014/15

17. 5 August 20145 August 2014 Transmission Annual Planning Report 2014 Forum
Questions