TransGrid held its annual Demand Management Innovation Forum on September 24th in Sydney. Over 60 people from energy users, advocates, researchers, technology providers and other networks discussed demand management activities in TransGrid's network and across the energy market. TransGrid sees opportunities for demand management to be integrated into its network planning, create a responsive market, and allow free information flow to respond to changing energy demands.

1. TransGrid’s 2014 Demand
Management Innovation Forum
Welcome
Stephen Clark
24 September 2014
1 | The role of networks in a changing market dynamic September 2014

2. Introduction
TransGrid’s 2014 Demand Management Innovation
Forum was held on 24 September in Sydney.
This is an annual event that TransGrid hold to discuss
demand management activities both in our network
and across the NEM.
More than 60 people joined the conversation, ranging
from large energy users, consumer advocates,
researchers, technology providers and other
networks.
2 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014

3. Changing market dynamic
Uncertainty
of demand
Divergence of peak and
average demand
3 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014
Revolution in
network /
energy services

4. A tale of two suppliers in a changing market
4 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014

5. New competitors
21 trillion photos
posted in 2013
402,000 sold every
day worldwide
1 million+ videos
uploaded last year
5 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014

6. Our vision for demand management
> Seamlessly integrated into the network planning
process
> Deep, liquid market available to respond to
changing demand forecasts
> Free flow of information between TransGrid and
the market
6 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014

7. TransGrid’s 2014 Demand
Management Innovation Forum
Demand management at
TransGrid
Mal Coble
24 September 2014
7 | The role of networks in a changing market dynamic September 2014

8. Introduction
TransGrid’s 2014 Demand Management Innovation
Forum was held on 24 September in Sydney.
This is an annual event that TransGrid hold to discuss
demand management activities both in our network
and across the NEM.
More than 60 people joined the conversation, ranging
from large energy users, consumer advocates,
researchers, technology providers and other
networks.
8 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014

9. 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
9 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014

10. Non-network options in TransGrid’s
revenue proposal
TransGrid proposes pre-emptive network support to allow a non-network
option for Powering Sydney’s Future
> Network option could cost around $400million
> 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 $70 million
To grow the market and facilitate additional non-network projects,
TransGrid has proposed a Demand Management Innovation Allowance
of $18 million from 2014 to 2019
10 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014

11. Demand management defined
11 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014

12. 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
12 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014

13. What is our experience?
Innovation is
needed to
grow the
demand
response
market
9
6
Requests for
proposals were
issued for 3 projects
which were then
deferred or cancelled
The current low electricity demand growth environment is a prime opportunity
to boost demand management innovation and procurement
13 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014
2
Request for
proposal issued
Response(s)
received
Network support
procured

14. 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
14 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014

15. Demand management innovation proposal
Collaboration
Market understanding
and development
Technology trialling
15 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014

16. Views on demand management innovation
Consumers generally
supported TransGrid
investing in finding ways
to reduce energy
demand and, potentially,
the amount of capital
investment needed
16 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014

17. Q & A
17 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014

18. Icebreaker activity
Draw your vision for demand
management into the future
18 | TransGrid’s 2014 Demand Management Innovation Forum 24 September 2014