This document discusses the Bruny Island Smart Grid Pilot project in Tasmania. The pilot aims to test the technical and economic feasibility of distributed battery storage. It is a multi-partner project led by TasNetworks, the local utility, to address challenges of an aging grid and help prevent a potential "utility death spiral". The pilot will provide insights into how battery storage could help shift peak demand and support higher levels of renewable energy on the grid in a sustainable business model for utilities undergoing transition.

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ARTS
Bruny Island Smart Grid Pilot:
Beating the Utility Death Spiral with Distributed Storage

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Bruny Island Smart Grid Pilot:
Beating the Utility Death Spiral with
Distributed Storage
Bruny Island Battery Trial – CONSORT : CONsumer energy systems providing
cost-effective grid suppORT
PhD presentation on 20th Feb 2017 for NCCARF forum, UNSW Sydney.
Veryan Hann, UTAS PhD Candidate, BSc(Hons), PGDip Energy, MPP.
veryan.hann@utas.edu.au
This project receives funding from ARENA as part of ARENA's
Research and Development Programme

3. The Energy Market (utility) Death Spiral
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Image credit: Appalachian Voices

4. Theory and context
The key points:
 Transition
 Innovation
 Policy implementation
 Integration and
Coordination
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5. Description - the Bruny Island pilot
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 TasNetworks, ANU, and USYD testing technical & economic
feasibility. Reposit Power providing ‘battery smart’ software.
UTAS is investigating the consumer-technology interaction.
 Not business-as-usual for a utility to do this pilot – it goes
against the traditional product-oriented business model.
 A move to a higher consumer engagement is a service-
oriented business model (IDC, 2015, pp.8-9; ENA and
CSIRO, 2015, p.1; Richter, 2012; and Helms, 2016)
 An opportunity out of the ‘utility death spiral’ challenge.
The Pilot area is the
majority of the island
except the northern tip (on
a different undersea cable).
Bruny Island Smart Grid Pilot
Multi-partner, multi-disciplinary; and initiated by
the utility (TasNetworks)

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Smart Grid Pilot - objectives
 To solve immediate problems for an aging network under pressure. It may represent a
utility paradigm shift towards infrastructure ownership and battery interaction with
householders. This is a potential new model for utilities.
Why do this pilot? (the utility perspective):
 Responding to structural change within the Australian energy market.
 Instead of viewing customers using PV as a business threat- harness opportunity “unlock
the customer and network benefits of residential storage” (IRITG, 2015, p.500)
 The rate of change of technology outstrips regulatory change; pilots like this help
gain insight into a future system, in order to model policy responses.

8. Urgent need to re-consider current business models
Global shift - The International Energy Agency finds that implementing smart grids is necessary for the
“global community to achieve shared goals” of energy security, climate change mitigation and economic
stability. (IEA, 2011)
Shift is occurring due to external pressures which need to be adapted to –
Key findings from a recent international white paper (IDC, 2015):
Current utility business models are under threat - by non-utility players (ICT & Telcos, eg with virtual
powerstations) as well as new business models
The traditional model is outdated and opportunities exist -
High fixed charges on bills are not cost reflective of use (John, 2015)
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 Utilities must innovate to meet Climate and Energy Policy pressures; to reduce GHG emissions; to
conduct business sustainably into the future.
 ‘adapt or die’ because battery storage costs are predicted to drop rapidly, and ‘Australians are installing
rooftop solar at world leading rates” (CSIRO and ENA, p.2)
 The benefits batteries are a fast response - recognised by the AER (Conboy, 2016)
 “there is an opportunity to change to a new business model based on storage. It is a change in
attitude" (Cox, 2017)
How to beat the death spiral? – With utility innovation
and distributed storage

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Summary of co-benefits for beating the death spiral
with utility innovation and distributed Storage
 Utilities operate sustainable business models,
 Positive environmental effects (incl. consumption at site of generation)
 Democratisation of energy (participation, co-ownership of infrastructure, more
info/awareness)
 and shifting the peak demand through behaviour change
 Increased renewable energy with increasing system reliability – through small
scale renewable and batteries

11. http://brunybatterytrial.org/
Acknowledgements
This project receives funding from ARENA as part of
ARENA's Research and Development Programme;
and is supported by an Australian Government RTP
Scholarship.

12. References
ARENA, 2015. ‘Trialling a new residential solar PV and battery model.’ Ergon Retail and ARENA 2015
Conboy, P. 2016. ‘Submission on National Electricity Amendment – Five Minute Settlement.’ Submission to the AEMC by the Chair of the AER
http://www.aer.gov.au/publications/submissions/aemc-rule-change-five-minute-settlement
Cox, J. 2017. Jason Cox, Program Coordinator of the ARENA Moreland Microgrid Investigation, VIC. personal communication and interview on 7 Feb
2017. CSIRO and Energy Networks Australia, 2016. ‘Electricity Network Transformation Roadmap: Key Concepts Report, Summary’. Energy Networks
Australia
IDC, 2015. ‘IDC Energy Insights White Paper: Designing the New Utility Business Models’ International Data Corporation, MA, USA
EC, 2009. ‘Bridging the Valley of Death: public support for commercialisation of eco-innovation’ European Commission, Directorate General
Environment. Final Report.
ENA and CSIRO, 2015. ‘Electricity network transformation roadmap’ Interim program report.
IEA, 2011. ‘Smart Grids Roadmap to 2050’ Technology Roadmaps: Smart Grids. International Energy Agency, Paris.
Helms, T. 2016. ‘Asset transformation and the challenges to servitize a utility business model’. Energy Policy. April 2016 v91 pp.98-112
Integrating Renewables into the Grid, 2015. ‘Stocktake Database’
John, J, 2015. ‘The future of utility business models, this time without fixed charges’. Greentechmedia
Richter, M. 2012. ‘Utilities’ business models for renewable energy: a review’. Renewable and sustainable energy reviews. 2012 June, v.16, no.5
Sadler, D. 2016. ‘Sydney startup Evergen raises $3.7 million to take “Australian first” smart energy offering to the people.’ published online at
StartupSmart
Simshauser, P., & Nelson, T. (2012). The Energy Market Death Spiral -Rethinking Customer Hardship. AGL Applied Economic and Policy Research, (31).
Wood, T, Blowers, D, and Chrisholm, C, 2015. ‘Sundown, sunrise: how Australia can finally get soalr power right.’ Grattan Institute ISBN: 978-1-
925015-67-6
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