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Local Generation Workshop: 25 September
Workshop Summary 
The workshop held on 25 September 2014 brought together a range of organisations and experts to explore 
local generation as a possible initiative to form part of the solution for the Powering Sydney’s Future Project. 
Approximately 50 representatives and experts gathered to hear about how local generation could form part of 
the solution. 
Workshop participants included representatives from consumer advocacy groups, academics, government 
representatives, regulators, large energy users, solution providers and other electricity networks. 
Participants were involved in interactive sessions to provide feedback on the local generation initiative and 
how existing barriers could be overcome.
Agenda 
 Introduction – Stephen Clark, TransGrid 
 Regulatory requirements for local generation 
connection – George Huang, AER and Catherine 
Chalmers, AMEO 
 Case Study, 101 Miller Street – Jamie Loader, Better 
Buildings Partnership 
 Embedded generation in the CBD – Rachele 
Williams, Ausgrid
Introduction 
Stephen Clark, Executive General Manager 
Network Planning and Performance
TransGrid’s network
Powering Sydney’s Future 
Project need 
0% 
10% 
20% 
30% 
40% 
50% 
60% 
70% 
80% 
90% 
100% 
0:15 
1:15 
2:15 
3:15 
4:15 
5:15 
6:15 
7:15 
8:15 
9:15 
10:15 
11:15 
12:15 
13:15 
14:15 
15:15 
16:15 
17:15 
18:15 
19:15 
20:15 
21:15 
22:15 
23:15 
PSF Typical max day profile 2006/07 to 2013/14
Key initiatives 
Supply 
Demand 
Population 
growth
What is local generation? 
 Generation of electricity 
from distributed sources, 
for local use 
 Examples include co- and 
tri-generation, solar 
panels and backup diesel 
generators.
Local generation for 
Powering Sydney’s Future 
 What role can local 
generation play in the 
Powering Sydney’s Future 
need? 
 Contribute to reduced 
demand forecast 
 Make an agreement with 
TransGrid to provide 
demand response (be paid 
to dispatch to network at 
times of critical peak)
SLIDE 10 
POWERING SYDNEY’S FUTURE 
PROJECT 
LOCAL GENERATION WORKSHOP 
25 September 2014 
Sydney
SLIDE 11 
OVERVIEW 
Local generation from the regulatory perspective 
• George Huang – AER / AEMO 
o Regulatory matters 
• Cath Chalmers – AEMO 
o Connection and Registration matters
SLIDE 12 
PROJECT AND REGULATORY 
BACKGROUND 
Overview: 
• TransGrid – inner Sydney electricity supply solutions 
• TransGrid – plan NSW transmission network 
• 2 proposed network options: 
 replacement 
 cost efficient alternative 
• Objective: identify most economic solution 
 MUST consider alternatives to network augmentation
SLIDE 13 
WHERE DOES THE AER FIT IN? 
• TransGrid must undertake Regulatory Investment Test 
for Transmission (RIT-T) 
 identify option to meet inner Sydney supply needs, and 
 maximise net economic benefits 
• AER ensures compliance with the RIT-T: 
 Focus is on compliance (not the ‘right’ option) 
 AER not responsible for health, environmental and safety 
concerns, etc. 
 Potential dispute resolution role 
 Separate from the revenue determination process
SLIDE 14 
OVERVIEW OF THE RIT-T 
• Economic cost-benefit assessment 
• Principles - economic efficiency, competitive neutrality, 
transparency 
• 3 stage process with 2 consultation stages 
• TransGrid must consider all credible options – options 
which meet the inner Sydney supply requirements that 
are: 
o Commercially and technically feasible 
o Can be implemented in sufficient time (does not need to be 
committed) 
• Options can consist of combination of network and non-network 
alternatives (i.e. local generation combined with 
network augmentation)
SLIDE 15 
KEY TAKEAWAYS 
• The AER has an active role in this space and will be 
monitoring this RIT-T process (as it does for all RIT-T’s) 
and updates in TransGrid’s annual planning report. 
• RIT-T consultation requirements are a minimum 
• Collaborative process – TransGrid is required to look for 
the best option 
• Don’t leave issues until the end, it is better to work 
through issues during the consultation process. 
• If TransGrid or participants have any issues, please talk 
to the AER. In the first instance, please email 
aerinquiry@aer.gov.au.
SLIDE 16 
WHERE DOES LOCAL GENERATION FIT 
INTO THE NETWORK 
Generation here may help reduce the need 
for investment in transmission systems
SLIDE 17 
AEMO’S ROLE IN CONNECTIONS 
• A non-network alternative 
 connect generating systems (new or existing) 
• Agreement to cover connection and operation.
SLIDE 18 
AEMO’S ROLE IN CONNECTIONS 
NER Chapter 5 or Chapter 5A: 
o Chapter 5 – if applying to 
 Register 
 Be granted exemption from registration 
o Chapter 5A – if exempt from registration 
(i.e. < 5 MW)
SLIDE 19 
AEMO’S ROLE IN CONNECTIONS 
For connection applications under: 
• Chapter 5: AEMO is a secondary participant 
• Acceptance of performance standards 
• Chapter 5A: NO ROLE for AEMO
SLIDE 20 
GENERATOR TECHNICAL PERFORMANCE 
Generator performance standards: 
o Document plants’ performance requirements 
o May require network modelling – loadflow, contingency 
analysis, voltage & transient stability 
o Need detailed models of technical performance 
Generators must: 
o comply with the standards 
o advise of changes or short-term issues
SLIDE 21 
WHO PARTICIPATES IN THE NEM 
Generator 
s 
Transmissio 
n 
substation 
Embedde 
d 
generator 
Retail 
custom 
er 
Distribution 
network 
Distribut 
ion 
substati 
on 
Franchise 
customer 
(your street) 
Transmissio 
n 
network 
Wholesale 
customer 
(e.g. Aluminium Smelter)
SLIDE 22 
REGISTRATION 
AEMO: 
• Registers participants in the NEM 
• Exempts some from registration 
• Requires that participants to comply with the Rules 
 Different requirements apply to different categories of 
participants. 
Very small generators 
• have a standing exemption 
• may register if they wish.
SLIDE 23 
FURTHER INFORMATION 
AEMO website: www.aemo.com.au 
 WEALTH of information 
 Dedicated pages for connection, registration 
1 October 2014: NEW streamlined 
Registration site 
Information & Support Hub: 
o online contact form 
o supporthub@aemo.com.au 
o Call 1300 236 600
SLIDE 24
BBP Case Studies 
Local Generation & 
Grid Connections 
JAMIE LOADER 
Co-Chair, BBP Environmental working 
group 
National Operations and Sustainability 
Manager, Brookfield
BBP: Energy & Emissions 
Performance BBP 
(Sydney CBD) 
16 major property companies and owners 
5 leading property management companies 
4 industry / government bodies 
70% emissions reduction commitment 
2.5m square metres net lettable area (FY13) 
$25m annual savings from avoided electricity costs 
4.4% average emissions reduction p.a. (from FY06) 
10MW local cogeneration installed capacity (Sydney CBD) 
(does not include stand-by generators)
Sydney LGA: Energy & Elec 
• Energy and electricity demand is going down in Sydney CBD 
• Consistent with NEM trends 
• In the case of the Better Buildings Partnership, these decreases are 
despite a 10% increase in floorspace during this time. 
City of Sydney Electricity Demand BBP Energy Demand 
Source: City of Sydney 
GJ 
-27% 
MWh 
-8% 
Source: Better Buildings Partnership
Local Generation – Sydney 
Source: City of Sydney 
OPPORTUNITY 
10 MW 
cogeneration 
capacity 
Excludes stand-by 
backup generation 
Renewables 
capacity 
Further installs in 
progress
101 Miller Street 
• Commercial office building in North Sydney 
• 37,500 sqm net lettable area, 38 storeys 
• 8,000 sqm retail plaza 
• Built in 1992 
• Formerly single-tenant occupied to 2007 
• Energy efficiency and tuning delivered a 4 Star 
NABERS in 2007 
• Refurbishment in 2007-08 with energy efficiency 
and trigeneration delivered: 
• 5 Star NABERS Rating 
• 5 Star Green Star Office Design v2 Rating 
Source: Mirvac Real Estate - http://www.101miller.com.au/
101 Miller: Refurbishment 
Energy Efficiency 
• Lift system 
• major refurbishment and replacement 
• Lighting 
• T5 high efficiency lamps, electronic ballasts 
• Control system with daylight sensing 
• Mechanical 
• Chiller and cooling tower replacement 
• Extensive use of variable speed drives 
• Isolation dampers for quarter floor zoning 
Source: Mirvac Real Estate - http://www.101miller.com.au/
101 Miller: Trigeneration 
On-site Trigeneration 
• Trigen (base and tenancy) necessary to 
achieve 5 Star NABERS Rating 
• Contract with Cogent Energy for 
BOOM over 12 years (Build-Own-Operate- 
Maintain) 
• Installed/commissioned in 4 months 
• Supply agreement for 70% of tenant 
load 
Key requirements to meet 
• Ausgrid connection specs 
• EPA NOx standard (<250ppm) 
• Complex installation went smoothly 
Source: Mirvac Real Estate and Cogent Energy 
2.33 MW trigeneration plant (2x1.166MW 
engines, 415V, 2000 A AC alternators) 
1.5MW chilled water capacity (2x750kW 
absorption chillers) 
Switch boards 2,000 A ACB 
MTU MDE MCC control system
101 Miller: Integration 
Fully integrated with building 
• Condenser water system 
• Electrical system integrated at 
building switch boards for grid 
parallel and island modes 
• BMS integration to prioritise 
trigen. 
• BMS also manages load build-up 
for island mode 
Source: Mirvac Real Estate and Cogent Energy
101 Miller: Challenges 
Regulatory 
• 4 approvals (Council, Ausgrid, 
Jemena, EPA) 
• Cogent Energy is a licensed 
electricity retailer, so no need for 
on-sell permission 
Space & Access 
• Installed into existing plant room 
in carpark 
• Chillers required partial 
dismantling 
• Substantial upgrade to building 
switchboards 
Source: Mirvac Real Estate and Cogent Energy 
Commercial 
• BOOM set-up 
• Tenant load agreements 
• Gas price uncertainty and 
maintenance costs (for Cogent) 
• Connection with grid and meter 
Systems Integration 
• Main switchboards modified to 
match building electrical loads with 
trigen engines 
• BMS control system for trigen 
system and low-level voltage free 
interface with building
101 Miller Street: Summary 
Key Learnings 
Local generation does not take the place of energy 
efficiency and building management. 
The BOOM set-up enabled tenant on-sell, plant 
capacity and price certainty for the building. 
• Accurate plant sizing and modelling is essential to balance 
capacity with building demand 
• Peak vs. base load provision 
• Grid vs. island mode 
• Ability to on-sell to tenants or other users 
• Industry rating tools (NABERS) rulings affect decision-making 
• Long-term gas prices impact business case 
Grid connection options significantly affect 
business case 
• tenant on-sell 
• demand response 
• precinct use 
Source: Mirvac Real Estate - http://www.101miller.com.au/
108 St Georges Terrace 
• Commercial office building in Perth CBD 
• 39,000 sqm net lettable area, 52 storeys 
• Built in 1988 
• A Grade services and amenities 
• Backup stand-by generator available as part of 
A Grade services 
• Refurbishment currently in progress: 
• New lifts and lift controls 
• Upgrade of tenancy areas with new 
mechanical systems 
• Plant and equipment upgrades 
• Targeted 4.5 Star NABERS Rating 
Source: Brookfield Australia http://brookfieldofficeproperties.com/content/perth/bankwest_tower-23104.html
108 St Georges: Grid Connection 
EnerNOC Demand response program 
• Monthly “availability” fee paid 
• “Event” payment each time an end-user is asked 
to shed load 
Strategies for participation can be used at other 
times of the year to limit demand and capacity 
charge impact 
Source: Brookfield Australia 
STRATEGIES 
Increasing chilled 
water temperature 
Slowing fans using 
variable speed drive 
Use of embedded 
generation 
Note: stand-by generator 
not used in this case
Enablers to local generation 
RULE MODERNISATION CHANGES 
1. Local generation credit tariff 
2. Subsidiary selling as part of 
retailer exemption rules 
3. Recognising benefits of sharing energy 
efficiently 
4. Review of Commercial Building 
Disclosure 
5. Incorporation of local generation in new 
projects with solutions for incoming 
owners (strata) 
Local generators should expect 
• Better environmental and 
economic outcomes 
• More flexibility due to fast-changing 
technology 
environment 
• Significantly better rates of return 
• Less delay and fewer hurdles and 
delays for new projects 
Source: City of Sydney
For more 
Jamie Loader – BBP / Brookfield: jamie.loader@au.brookfield.com 
Dave Palin – Mirvac: david.palin@mirvac.com 
Esther Bailey – Better Buildings Partnership: ebailey@cityofsydney.nsw.gov.au 
Nalin Wickramasinghe – Cogent Energy: nalin@cogentenergy.com.au
Local Generation 
Enabling Embedded Generation in the CBD 
TransGrid Powering Sydney’s Future Workshops 
September 2014
Overview 
40 
A whole new world 
Summary of existing connected generation 
 Ausgrid’s role 
We built this city 
Triplex Network 
Fault level in the City 
CBD embedded generator connection 
CBD Embedded Generation DMIA Project 
 Project aims 
 Project progress
Existing Generation in Inner Metro Sydney 
Solar Generation 
 8600 houses and businesses 
 21MVA of solar generation 
 Large Solar Installs including City of 
Sydney and Ikea Tempe 
Other Generation on our 
Network 
 Diesel, Natural Gas, Landfill, Coal Methane, 
Hydro, and large solar. 
41 
Generation 
 8 Major Local Generators 
 4.3MW Biogas Generation 
 7.5MW Natural Gas Generation
Generation Connection Policy 
42 
Rule Change 
 Enacted 1st of October 2014 
Categories of Generators 
 Less than 100kW – Micro Generation – standing connection offer 
 Less than 5MW - National Electricity Rules, Chapter 5A 
 More than 5MW – National Electricity Rules Chapter 5 
AER 
 “If a specific shared network augmentation is required for the sole 
purpose of enabling an individual Embedded Generator (or a group of 
Embedded Generators) to remove network constraints on it’s (or their) 
output levels, the load customers should not be funding such network 
investment.”
The Sydney CBD is special 
43
Triplex vs Suburban Networks 
44
Fault Level – Every little bit counts 
45
CBD Embedded Generation Project 
46 
The objective of this project is to develop a cost effective 
technical solution to the issues of: 
i) fault level and 
ii) feeder imbalance 
which currently limit connection of embedded generation in 
the Sydney CBD.
CBD Embedded Generation Project – options analysis 
47 
• A range of potential technical solutions were 
developed. 
• Each option was assessed for technical feasibility 
and financial viability. 
• A preferred approach was selected and a 
preliminary design completed.
CBD Embedded Generation - Preferred solution 
48 
A B C 
Customer Load Gen 
• Detailed design 
of an auto-closing 
scheme 
in progress 
• Installation at 
selected trial 
CBD site in 
summer 14/15 
• Testing and final 
report in early 
2015
49 
Questions?
Breakout session 
Barriers and opportunities: 
 Cost 
 Technical 
 Regulatory 
 Social/ environment
Next steps
Thank you 
Stay informed and 
involved through the 
project web page 
www.yoursaytransgrid 
.com.au/psf

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Local Generation Workshop - Powering Sydney

  • 2. Workshop Summary The workshop held on 25 September 2014 brought together a range of organisations and experts to explore local generation as a possible initiative to form part of the solution for the Powering Sydney’s Future Project. Approximately 50 representatives and experts gathered to hear about how local generation could form part of the solution. Workshop participants included representatives from consumer advocacy groups, academics, government representatives, regulators, large energy users, solution providers and other electricity networks. Participants were involved in interactive sessions to provide feedback on the local generation initiative and how existing barriers could be overcome.
  • 3. Agenda  Introduction – Stephen Clark, TransGrid  Regulatory requirements for local generation connection – George Huang, AER and Catherine Chalmers, AMEO  Case Study, 101 Miller Street – Jamie Loader, Better Buildings Partnership  Embedded generation in the CBD – Rachele Williams, Ausgrid
  • 4. Introduction Stephen Clark, Executive General Manager Network Planning and Performance
  • 6. Powering Sydney’s Future Project need 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0:15 1:15 2:15 3:15 4:15 5:15 6:15 7:15 8:15 9:15 10:15 11:15 12:15 13:15 14:15 15:15 16:15 17:15 18:15 19:15 20:15 21:15 22:15 23:15 PSF Typical max day profile 2006/07 to 2013/14
  • 7. Key initiatives Supply Demand Population growth
  • 8. What is local generation?  Generation of electricity from distributed sources, for local use  Examples include co- and tri-generation, solar panels and backup diesel generators.
  • 9. Local generation for Powering Sydney’s Future  What role can local generation play in the Powering Sydney’s Future need?  Contribute to reduced demand forecast  Make an agreement with TransGrid to provide demand response (be paid to dispatch to network at times of critical peak)
  • 10. SLIDE 10 POWERING SYDNEY’S FUTURE PROJECT LOCAL GENERATION WORKSHOP 25 September 2014 Sydney
  • 11. SLIDE 11 OVERVIEW Local generation from the regulatory perspective • George Huang – AER / AEMO o Regulatory matters • Cath Chalmers – AEMO o Connection and Registration matters
  • 12. SLIDE 12 PROJECT AND REGULATORY BACKGROUND Overview: • TransGrid – inner Sydney electricity supply solutions • TransGrid – plan NSW transmission network • 2 proposed network options:  replacement  cost efficient alternative • Objective: identify most economic solution  MUST consider alternatives to network augmentation
  • 13. SLIDE 13 WHERE DOES THE AER FIT IN? • TransGrid must undertake Regulatory Investment Test for Transmission (RIT-T)  identify option to meet inner Sydney supply needs, and  maximise net economic benefits • AER ensures compliance with the RIT-T:  Focus is on compliance (not the ‘right’ option)  AER not responsible for health, environmental and safety concerns, etc.  Potential dispute resolution role  Separate from the revenue determination process
  • 14. SLIDE 14 OVERVIEW OF THE RIT-T • Economic cost-benefit assessment • Principles - economic efficiency, competitive neutrality, transparency • 3 stage process with 2 consultation stages • TransGrid must consider all credible options – options which meet the inner Sydney supply requirements that are: o Commercially and technically feasible o Can be implemented in sufficient time (does not need to be committed) • Options can consist of combination of network and non-network alternatives (i.e. local generation combined with network augmentation)
  • 15. SLIDE 15 KEY TAKEAWAYS • The AER has an active role in this space and will be monitoring this RIT-T process (as it does for all RIT-T’s) and updates in TransGrid’s annual planning report. • RIT-T consultation requirements are a minimum • Collaborative process – TransGrid is required to look for the best option • Don’t leave issues until the end, it is better to work through issues during the consultation process. • If TransGrid or participants have any issues, please talk to the AER. In the first instance, please email aerinquiry@aer.gov.au.
  • 16. SLIDE 16 WHERE DOES LOCAL GENERATION FIT INTO THE NETWORK Generation here may help reduce the need for investment in transmission systems
  • 17. SLIDE 17 AEMO’S ROLE IN CONNECTIONS • A non-network alternative  connect generating systems (new or existing) • Agreement to cover connection and operation.
  • 18. SLIDE 18 AEMO’S ROLE IN CONNECTIONS NER Chapter 5 or Chapter 5A: o Chapter 5 – if applying to  Register  Be granted exemption from registration o Chapter 5A – if exempt from registration (i.e. < 5 MW)
  • 19. SLIDE 19 AEMO’S ROLE IN CONNECTIONS For connection applications under: • Chapter 5: AEMO is a secondary participant • Acceptance of performance standards • Chapter 5A: NO ROLE for AEMO
  • 20. SLIDE 20 GENERATOR TECHNICAL PERFORMANCE Generator performance standards: o Document plants’ performance requirements o May require network modelling – loadflow, contingency analysis, voltage & transient stability o Need detailed models of technical performance Generators must: o comply with the standards o advise of changes or short-term issues
  • 21. SLIDE 21 WHO PARTICIPATES IN THE NEM Generator s Transmissio n substation Embedde d generator Retail custom er Distribution network Distribut ion substati on Franchise customer (your street) Transmissio n network Wholesale customer (e.g. Aluminium Smelter)
  • 22. SLIDE 22 REGISTRATION AEMO: • Registers participants in the NEM • Exempts some from registration • Requires that participants to comply with the Rules  Different requirements apply to different categories of participants. Very small generators • have a standing exemption • may register if they wish.
  • 23. SLIDE 23 FURTHER INFORMATION AEMO website: www.aemo.com.au  WEALTH of information  Dedicated pages for connection, registration 1 October 2014: NEW streamlined Registration site Information & Support Hub: o online contact form o supporthub@aemo.com.au o Call 1300 236 600
  • 25. BBP Case Studies Local Generation & Grid Connections JAMIE LOADER Co-Chair, BBP Environmental working group National Operations and Sustainability Manager, Brookfield
  • 26. BBP: Energy & Emissions Performance BBP (Sydney CBD) 16 major property companies and owners 5 leading property management companies 4 industry / government bodies 70% emissions reduction commitment 2.5m square metres net lettable area (FY13) $25m annual savings from avoided electricity costs 4.4% average emissions reduction p.a. (from FY06) 10MW local cogeneration installed capacity (Sydney CBD) (does not include stand-by generators)
  • 27. Sydney LGA: Energy & Elec • Energy and electricity demand is going down in Sydney CBD • Consistent with NEM trends • In the case of the Better Buildings Partnership, these decreases are despite a 10% increase in floorspace during this time. City of Sydney Electricity Demand BBP Energy Demand Source: City of Sydney GJ -27% MWh -8% Source: Better Buildings Partnership
  • 28. Local Generation – Sydney Source: City of Sydney OPPORTUNITY 10 MW cogeneration capacity Excludes stand-by backup generation Renewables capacity Further installs in progress
  • 29. 101 Miller Street • Commercial office building in North Sydney • 37,500 sqm net lettable area, 38 storeys • 8,000 sqm retail plaza • Built in 1992 • Formerly single-tenant occupied to 2007 • Energy efficiency and tuning delivered a 4 Star NABERS in 2007 • Refurbishment in 2007-08 with energy efficiency and trigeneration delivered: • 5 Star NABERS Rating • 5 Star Green Star Office Design v2 Rating Source: Mirvac Real Estate - http://www.101miller.com.au/
  • 30. 101 Miller: Refurbishment Energy Efficiency • Lift system • major refurbishment and replacement • Lighting • T5 high efficiency lamps, electronic ballasts • Control system with daylight sensing • Mechanical • Chiller and cooling tower replacement • Extensive use of variable speed drives • Isolation dampers for quarter floor zoning Source: Mirvac Real Estate - http://www.101miller.com.au/
  • 31. 101 Miller: Trigeneration On-site Trigeneration • Trigen (base and tenancy) necessary to achieve 5 Star NABERS Rating • Contract with Cogent Energy for BOOM over 12 years (Build-Own-Operate- Maintain) • Installed/commissioned in 4 months • Supply agreement for 70% of tenant load Key requirements to meet • Ausgrid connection specs • EPA NOx standard (<250ppm) • Complex installation went smoothly Source: Mirvac Real Estate and Cogent Energy 2.33 MW trigeneration plant (2x1.166MW engines, 415V, 2000 A AC alternators) 1.5MW chilled water capacity (2x750kW absorption chillers) Switch boards 2,000 A ACB MTU MDE MCC control system
  • 32. 101 Miller: Integration Fully integrated with building • Condenser water system • Electrical system integrated at building switch boards for grid parallel and island modes • BMS integration to prioritise trigen. • BMS also manages load build-up for island mode Source: Mirvac Real Estate and Cogent Energy
  • 33. 101 Miller: Challenges Regulatory • 4 approvals (Council, Ausgrid, Jemena, EPA) • Cogent Energy is a licensed electricity retailer, so no need for on-sell permission Space & Access • Installed into existing plant room in carpark • Chillers required partial dismantling • Substantial upgrade to building switchboards Source: Mirvac Real Estate and Cogent Energy Commercial • BOOM set-up • Tenant load agreements • Gas price uncertainty and maintenance costs (for Cogent) • Connection with grid and meter Systems Integration • Main switchboards modified to match building electrical loads with trigen engines • BMS control system for trigen system and low-level voltage free interface with building
  • 34. 101 Miller Street: Summary Key Learnings Local generation does not take the place of energy efficiency and building management. The BOOM set-up enabled tenant on-sell, plant capacity and price certainty for the building. • Accurate plant sizing and modelling is essential to balance capacity with building demand • Peak vs. base load provision • Grid vs. island mode • Ability to on-sell to tenants or other users • Industry rating tools (NABERS) rulings affect decision-making • Long-term gas prices impact business case Grid connection options significantly affect business case • tenant on-sell • demand response • precinct use Source: Mirvac Real Estate - http://www.101miller.com.au/
  • 35. 108 St Georges Terrace • Commercial office building in Perth CBD • 39,000 sqm net lettable area, 52 storeys • Built in 1988 • A Grade services and amenities • Backup stand-by generator available as part of A Grade services • Refurbishment currently in progress: • New lifts and lift controls • Upgrade of tenancy areas with new mechanical systems • Plant and equipment upgrades • Targeted 4.5 Star NABERS Rating Source: Brookfield Australia http://brookfieldofficeproperties.com/content/perth/bankwest_tower-23104.html
  • 36. 108 St Georges: Grid Connection EnerNOC Demand response program • Monthly “availability” fee paid • “Event” payment each time an end-user is asked to shed load Strategies for participation can be used at other times of the year to limit demand and capacity charge impact Source: Brookfield Australia STRATEGIES Increasing chilled water temperature Slowing fans using variable speed drive Use of embedded generation Note: stand-by generator not used in this case
  • 37. Enablers to local generation RULE MODERNISATION CHANGES 1. Local generation credit tariff 2. Subsidiary selling as part of retailer exemption rules 3. Recognising benefits of sharing energy efficiently 4. Review of Commercial Building Disclosure 5. Incorporation of local generation in new projects with solutions for incoming owners (strata) Local generators should expect • Better environmental and economic outcomes • More flexibility due to fast-changing technology environment • Significantly better rates of return • Less delay and fewer hurdles and delays for new projects Source: City of Sydney
  • 38. For more Jamie Loader – BBP / Brookfield: jamie.loader@au.brookfield.com Dave Palin – Mirvac: david.palin@mirvac.com Esther Bailey – Better Buildings Partnership: ebailey@cityofsydney.nsw.gov.au Nalin Wickramasinghe – Cogent Energy: nalin@cogentenergy.com.au
  • 39. Local Generation Enabling Embedded Generation in the CBD TransGrid Powering Sydney’s Future Workshops September 2014
  • 40. Overview 40 A whole new world Summary of existing connected generation  Ausgrid’s role We built this city Triplex Network Fault level in the City CBD embedded generator connection CBD Embedded Generation DMIA Project  Project aims  Project progress
  • 41. Existing Generation in Inner Metro Sydney Solar Generation  8600 houses and businesses  21MVA of solar generation  Large Solar Installs including City of Sydney and Ikea Tempe Other Generation on our Network  Diesel, Natural Gas, Landfill, Coal Methane, Hydro, and large solar. 41 Generation  8 Major Local Generators  4.3MW Biogas Generation  7.5MW Natural Gas Generation
  • 42. Generation Connection Policy 42 Rule Change  Enacted 1st of October 2014 Categories of Generators  Less than 100kW – Micro Generation – standing connection offer  Less than 5MW - National Electricity Rules, Chapter 5A  More than 5MW – National Electricity Rules Chapter 5 AER  “If a specific shared network augmentation is required for the sole purpose of enabling an individual Embedded Generator (or a group of Embedded Generators) to remove network constraints on it’s (or their) output levels, the load customers should not be funding such network investment.”
  • 43. The Sydney CBD is special 43
  • 44. Triplex vs Suburban Networks 44
  • 45. Fault Level – Every little bit counts 45
  • 46. CBD Embedded Generation Project 46 The objective of this project is to develop a cost effective technical solution to the issues of: i) fault level and ii) feeder imbalance which currently limit connection of embedded generation in the Sydney CBD.
  • 47. CBD Embedded Generation Project – options analysis 47 • A range of potential technical solutions were developed. • Each option was assessed for technical feasibility and financial viability. • A preferred approach was selected and a preliminary design completed.
  • 48. CBD Embedded Generation - Preferred solution 48 A B C Customer Load Gen • Detailed design of an auto-closing scheme in progress • Installation at selected trial CBD site in summer 14/15 • Testing and final report in early 2015
  • 50.
  • 51. Breakout session Barriers and opportunities:  Cost  Technical  Regulatory  Social/ environment
  • 53. Thank you Stay informed and involved through the project web page www.yoursaytransgrid .com.au/psf

Editor's Notes

  1. JASMINE I would like to welcome everyone here this afternoon to the Powering Sydney’s Future local generation workshop. In response to feedback from stakeholders TransGrid is hosting a series workshops to provide an opportunity for more in-depth discussions.   My name is Jasmine Hoye and I am from Newgate Research. I will be your facilitator this afternoon.   I would like to start by saying that those of you who joined us at this morning’s session may feel these introductions are a little repetitive. However we do have some new faces so please bear with us while we go through the introductions.   I’d like to run through today’s agenda and how things will work this afternoon.   Firstly a few housekeeping matters before we start: It would be appreciated if you could turn your mobiles to silent, if not off. If you do need to take or make a call it would be great if you could just pop out into the foyer area. The bathrooms are just [give directions], please feel free to duck out at any time. Exits
  2. JASMINE This afternoon’s workshop focuses on Local Generation. Over the next hour, we are going to hear a few presentations, and then we’ll spend the rest of the session getting your feedback, covering what you see as the barriers to local generation and the opportunities for overcoming them.   We’ll start with an introduction by Stephen Clark from TransGrid. There will then be a joint presentation with George Huang from the Australian Energy Regulator and Catherine Chalmers from the Australian Energy Market Operator who will provide an overview of the regulatory process required for local or embedded generation connection. Then we’ll hear from the Co-Chair of the Better Buildings Partnership, Jamie Loader about a recent example of embedded generation in the Sydney CBD, 101 Miller Street. Lastly, Rachele Williams from Ausgrid will provide an overview of some recent Ausgrid findings about local generation in the CBD.
  3. STEPHEN Welcome everyone here to local generation workshop and thank them for their ongoing participation in what TransGrid thinks is an exciting project and an exciting process I will briefly introduce the Powering Sydney’s Future project, which many of you may already been familiar with and provide an overview of how local generation may fit in the ultimate solution From the initial stakeholder forum held in June and from what the occurring in the industry at large, TransGrid is cognisant that local generation will continue to be a consideration in future planning
  4. -TransGrid’s overall network and focus on the significance of the inner Sydney network Aware of consumer and stakeholder expectations Currently, approximately forty 132 and 330 kV cables supply electricity to offices, warehouses, universities and residences in inner-west Sydney, Sydney CBD and eastern suburbs The seven LGAs that are being catered for in the Powering Sydney’s Future project consist of approximately 650k residents and generate approximately 27.4% of the state’s GDP. Parts of the existing network supplying the inner Sydney area are approaching the end of their service life and we need to start planning now for the future. Over a dozen (15) cables are being retired over the next decade. They are all over 35 years old. - Non-network options are area specific Primary target areas for non-network initiatives are shaded Other areas such as St George area also effective Note: Leichardt, Rozelle and areas to its west and north are broadly 0% effective.
  5. 3% curtailment 11:15 am to 5pm 1% (1pm to 5pm) 4% (10:45 am to 5pm) Very long period of peak demand – Large variety of customers in the area, commercial, industrial, residential with different behaviours driving peak demand. As a result, the mix of these drivers is a very long extended period of peak demand. Emphasize long peak demand period. DR must be capable of deployment over this long period, but the portfolio could be made up of different types of DR, over different periods, all contributing to reducing this peak. Peak is primarily driven by commercial cooling equipment (at offices, hotels, universities etc.) Residential cooling will contribute somewhat (school children arriving home from school, part time workers, retired, non-working residents), but cooling equipment typically comes on after 5 as workers arrive home so an energy efficiency focus from TransGrid may not necessarily target these and would instead focus on commercial and industrial customers in the area.
  6. What we do know is that parts of the existing network supplying the inner Sydney area are approaching the end of their service life and we need to start planning now for the future. Planning inner Sydney’s future electricity network provides an opportunity to consider a range of initiatives. Project concurrently investigating multiple initiatives to develop a progressive and cost-effective solution. Explain why we are looking at these different initiatives. Explain benefits of deferring large investments. Touch on each initiative and explain that no specific decision on a solution has been made. Builder of last resort: ongoing testing/review of underlying assumptions and solutions allows more responsiveness to changing environment. considering all alternative and how they can play a part in the solution or play a part in better informing forecasts
  7. So what is local generation? Local generation can be defined as generation of electricity through distributed sources of energy for use within close proximity. Local generation can include: Existing backup small- scale generators in commercial precincts; Brand new generators; Cogeneration and tri-generation; and Renewable systems, if have a storage component in order to supply at peak demand times. Co-generation and tri-generation plants can be used in peak times as local generation sources to reduce peak. The 101 Miller St case study would be one to note in this case. There are numerous existing backup local generators across commercial precincts including shopping centres, offices and hospitals that can be used in peak times. Solar panels such as the 990kW Ikea has announced will contribute to peak reduction in summer. TransGrid has installed polycrystalline solar panels at its Wallgrove site this year as part of the iDemand project Energy storage systems such as the 400kWh lithium polymer batteries (pictured) and installed at Wallgrove can also reduce peak
  8. Emphasise the need for local generation to be within the most effective areas for the project in CBD
  9. I am Jamie Loader, Co-Chair of the Better Buildings Partnership Environmental Working Group. In my normal daily life I also am National Operations and Sustainability Manager for Brookfield Australia. We have been asked by Transgrid to provide you a couple examples of local generation and grid connection capabilities at commercial building scale and some of the challenges and enablers for further work in future.
  10. The Better Buildings Partnership is a collaboration of leading property organisations (institutional landlords, developers, universities, property managers and industry bodies/government). We have targets for energy, emissions, water and are developing them for operational and fitout waste. Many of these targets match the City of Sydney’s ambitious Sydney 2030 targets, including a 70% emissions reduction based on 2006 baseline. As of FY13 we: control 2.5million square metres net lettable area (FY13) evidenced $25million annual savings from avoided electricity costs delivered 4.4% average emissions reduction p.a. (from FY06) installed 10MW local cogeneration capacity (Sydney CBD) (does not include stand-by generators)
  11. Context for why we are here today: Transgrid is engaging on network upgrade options with the community (and BBP is happy to be a part of this) Since FY06 City of Sydney has seen declining electricity demand BBP has seen a 27% reduction in energy demand This demand reduction has happened despite growth in our portfolio and continued development in the City. This is consistent with the broader National Electricity Market trends and current projections by some experts project this decline to continue with the rise of electricity prices, renewable options and other factors.
  12. This map shows a snapshot of current existing capacity of local generation in the CBD. It is not exhaustive (eg. Westpac Kent Street Office and Barangaroo missing off here). The BBP alone has over 10MW of cogen/trigen capacity currently installed and is in the process of investigating/installing more. The installation is commercially difficult for reasons we will outline in the first case study. This map does not show the significant stand-by backup generation in prime-grade offices throughout the city that are rarely switched on.
  13. 101 Miller Street is located in North Sydney owned by BBP Member Mirvac and another organisation. One of the largest office towers in North Sydney, targeted and delivered a 5 Star NABERS rating as part of upgrades in 2007-08.
  14. Don’t spend too long on this, but important to note: Energy Efficiency was the first action taken by the building in its upgrade and included standard modernisations that many prime assets across Sydney CBD and North Sydney have now undertaken.
  15. The building was one of the first trigeneration installations in Sydney CBD/North Sydney for a commercial building of its size Trigen sizing for base and tenancy loads was necessary to achieve the targeted 5 Star NABERS Rating according to the modelling A BOOM contract was signed with Cogent, with key requirements for the system including: Working closely with Ausgrid on the connection specifications with the grid (the system can work in island mode) Assurance on the EPA NOx standards Smooth installation for a complex project – space constraints, tenancy and building system interaction
  16. The system is fully integrated with the building, with bms prioritising energy usage from the trigen over the grid and managing the load build-up for island mode.
  17. The team identified multiple challenges to the installation and operation of this, including standard space/access and integration challenges, but to focus: Regulatory challenges required a number of approvals with the Council, EPA, Ausgrid and Jemena as gas supplier Commercial challenges included the contracting and operation of the plant (BOOM for 12 years with Cogent was settled) Balancing how the load would be sized – integrating with tenant needs, base building alone, peak reduction alone, etc. Gas price uncertainty and hedging against future energy price increases was an important consideration. (Cogent manage the gas and just bill the energy to the building and tenant, so gas prices were not a consideration for Mirvac in this case) Connection arrangements with the meter and interface with the grid were vitally important.
  18. Key learnings Embedded generation does not take the place of energy efficiency and building management/tuning. The BOOM contract enabled an on-sell to tenants (Cogent are an energy retailer) Industry rating tools affect decisions on this (NABERS/CBD do not recognise export, import low-emissions energy) The Grid connection options significantly affect the business case for local generation, eg. If we owned a building across the street the current regulations do not adequately acknowledge the savings for our connecting the two buildings, or even within the building for on-sell to tenant customers. BBP has other instances showcasing these challenges and innovative ways to try to overcome them, like 8 Chifley and Coca-Cola Place. Other systems are sized to operate purely behind the meter (leading to smaller systems being specified) and sometimes never get switched on. We have options for what it would like if we had a better environment for local generation and grid connection with our second case study.
  19. We have options for what it would like if we had a better environment for local generation and grid connection with our second case study. 108 St Georges Terrace in Perth, major upgrade works in progress (2 phases) with targeted 4.5 Star NABERS rating outcome.
  20. In the SouthWest Interconnected Scheme (SWIS Grid) local generation is rewarded when connected to the grid for demand response and other purposes. Funds via demand response program enables the business case for local generation or upgrades, which has broad-reaching benefits beyond just the program participation. A number of strategies to employ depending on the asset: Efficiency like chilled water temperatures, fan speeds Embedded Generation via standby generators or cogen/trigen On-site renewables via battery storage Etc Key point is that there are many strategies within buildings that are sited directly where demand is highest (not out hundreds of KM away) that provide certainty and confidence for demand response.
  21. In summary, there are some key enablers to increased uptake of local generation. The network providers, local generators, our customers and the community share a want for better environmental and economic outcomes. We have big opportunities with this if we had more flexibility, lower hurdles and delays and greater certainty on our returns for upgrade works. There are a number of modernisations we would like to see to the rules, but the key 2 changes are: A local generation credit tariff: Local generators should be able to team up with FRMPs to sell their output to willing local buyers at a fairer price than current Similar to UK model (have similar electricity market structure) Subsidiary selling as part of retailer exemption rules
  22. Thanks and if you have further questions see contact details for above
  23. JASMINE We have heard a lot about local generation, including some of the successes, the challenges and what is being done at an industry level to facilitate greater up-take.   There is also a lot of experience in the room from people who have tried or are in the midst of trying to get local generation implemented in their buildings. This part of today’s workshop is aimed at extracting your knowledge and applying it to the Powering Sydney’s Future Project.   We will be working in table groups for the next 30-40 minutes and working through a series of key areas to focus on identifying the barriers and the opportunities for each.   Your table facilitators will guide the discussion and you will spend about 8-10 minutes noting down the barriers and opportunities to overcome these barriers for each of these factors: Cost Technical Regulatory Social/environmental   As a group you will then indentify the top 3 priorities for each barrier (i.e. the biggest or most significant barriers), and the top 3 opportunities for overcoming the barriers – which may be different from the top 3 barriers. Theses will later be shared with the wider group.
  24. - Early engagement: already commenced (local councils, this forum, other key stakeholders); reaching out to community next -Options Review: ongoing investigations on all initiatives, with a RIT-T process commencing this year. -Network Support Market Development: to develop market interest; RFPs -Environmental Assessment for cable option: critical to ensure a new cable (network infrastructure) remains an option. Will involve finalising cable route and submitting Preliminary Environmental Assessment (timing- after RIT-T has commenced this year) NO INVESTMENT DECISION MADE
  25. Close workshop with this slide Many thanks for your feedback today. Webpage will be regularly updated. Today’s presentations will be available on the website in the next few days. Welcome feedback and will tailor engagement approach to address specific needs.