Onsite or Offsite - Microgrids versus Offsite PPA's The emerging corporate fashion, in Australia, for purchasing large licks of energy in the last year has been the Offsite Corporate PPA. This follows a well established trend in the US and Europe, which we seem to be catching up with. However, we should ask what is the best way to achieve and overall energy solution that enables both long term energy savings and aids the transition to the future grid in Australia. Onsite or Offsite?

1. Onsite or Offsite?
Microgrids versus Corporate PPA’s

2. Onsite or Offsite?
▶ What & Why PPA
▶ Compare Onsite and Offsite
▶ Example – Behind the Meter Microgrid
▶ What is best?

3. What is a PPA?
“A Power Purchase Agreement or PPA is a contract between a buyer
and generator to purchase (whether physically or notionally)
electricity at a pre-agreed price for a pre-agreed term. “1

4. Price and Term

5. Price and Term – Predicting the Future
https://www.aer.gov.au/wholesale-markets/wholesale-statistics/quarterly-base-futures-prices
As at 27th June 2018
2
2018 2019 2020 2021 2022

6. 3

7. 4

8. Why Microgrids?
5 6 7 7

9. Solar Export
Site
Onsite C&I Solar
Commercial
Solar
DNSP
Cheaper Power
Size Limited

10. Services
Solar Export
Site
Charging
Site
MicroGrid as a Service
Commercial
Solar
DNSP

11. Services
Solar Export
Site
Charging
Site
MicroGrid as a Service
Commercial
Solar
DNSP
Cheaper Power
Size not limited
Power during Blackout
More stable supply
Peak Shaving

12. Services
Solar Export
Site
Charging
Spot Market
Feeder Voltage Control
Demand Response
FCAS
Network Deferment
Site
MicroGrid as a Service
Commercial
Solar
DNSP
Cheaper Power
Size not limited
Power during Blackout
More stable supply
Peak Shaving

13. 2MW
Optimal Size for behind meter
consumption
4 MW + 3MWh Storage
Full utilisation of roof potential
Maximise returns

14. Energy
$/MWh
Agreed for
Term
Energy
$/MWh
Agreed for
Term
Env. Charges
Network
Retail
Energy Cost
Lower “landed” cost
Offsite PPA Onsite PPA
Energy Cost

15. Microgrid Value Stack
Energy Value - Spot
Energy Load Management – Peak or Time
Power Quality & Reliability (FCAS)
Demand Response
Distribution Investment Deferral

16. Customer Benefits
OFFSITE PPA
▶ Agreed Wholesale price
▶ Source large % of load
▶ Not limited by roofspace
ONSITE MICROGRID PPA
▶ Agreed total energy price
▶ Increased supply reliability
▶ Access to other revenue streams

17. Grid Benefits
OFFSITE PPA
▶ More Capacity - remotely
▶ Can be firmed with storage
▶ Can provide Ancillary Services
ONSITE MICROGRID PPA
▶ More capacity - locally
▶ Alleviates local demand
▶ Can provide Ancillary Services

18. DER Visibility by DNSP
DNSP
ADMS
Services
Solar Export
Site
Site
Commercial
Solar

19. DER Visibility by DNSP
DNSP
ADMS
Services
Solar Export
Site
Site
Commercial
Solar

20. What is best?
▶ Onsite Microgrids are a business tool, and can;
▶ Unlock new value streams
▶ Complement
▶ Offsite PPA’s,
▶ Energy Efficiency and
▶ Demand Management
▶ BUT
▶ Onsite Microgrids do not suit all situations

21. Contact Details
Shaun Scallan
shaun@planetarkpower.com
https://www.linkedin.com/in/shaunscallan/
www.planetarkpower.com

22. References
1. Green Hedging : A Guide to Structuring Corporate Renewable PPA’s, Baker McKenzie & WWF.
https://www.bakermckenzie.com/-/media/files/insight/publications/updated-wwf1443-
corporate-ppa-reportonline--15-june-2018.pdf?la=en
2. https://www.aer.gov.au/wholesale-markets/wholesale-statistics/quarterly-base-futures-
prices
3. https://about.bnef.com/blog/corporations-already-purchased-record-clean-energy-volumes-
2018-not-anomaly/
4. https://www.pwc.com.au/publications/pdf/optimising-energy-corporate-ppas-nov17.pdf
5. http://www.abc.net.au/news/2016-09-29/transmission-tower-down-in-sas-mid-
north/7887072
6. http://www.abc.net.au/news/2017-03-28/damaged-power-transmission-tower-near-
melrose-south-australia/8393000
7. https://www.news.com.au/technology/environment/final-report-reveals-the-causes-of-
south-australias-statewide-blackout/news-story/d5499231749c6a858cdc3b4a78f5c7e1