A presentation from Horizon Power CEO Frank Tudor on the future of electricity and role of microgrids.

1. Future of Electricity – Microgrids – Back to the Future
Frank Tudor

2. The Energy Policy Conundrum

3. 1890 2100 2017 Time
Energy Revolution
TODAY
Universal energy for all
Phases
Distributed Energy Resources
Centralised Genera@on
Hub and Spoke

4. Energy Revolution – global perspective
California
New York
Korea
Australia
• Total commitment to climate change
• LA will abide by Paris accord regardless of Admin
• More renewable energy jobs than whole
of US coal industry
• Regulatory driven integra@on of DER
• DSP will be used to spawn crea@on of microgrids
• Focus on crea@on of jobs/industry
• Focused on revolu8on which they see driven by
renewable energy, storage, electric vehicles and
microgrids
• Focus on crea8on of 500K jobs by 2030

5. Navigating the global electricity revolution

6. Australia will spend $1,000B on our electricity
systems to 2050

7. Distributed energy resources will dominate

8. What is a microgrid and why is it smart?
• Clearly defined boundaries
• Single controllable entity
• Interconnected loads
• Orchestrates Distributed
Energy Resources (DERs)
• Integrated customers
• Scalable
8

9. Smart City Grids Remote microgrids
The future of electricity is being reinvented in
Australia

10. In a service
territory
five times
the size of
California

11. Because Microgrids and Distributed
Energy are the DNA of future electricity
And will be key to delivering benefits for customers, the
community and the environment in the new energy economy

12. With some surprising similarities to
the city of New York

13. Advanced Microgrids & Distributed Energy
Resources are the DNA of future electricity

14. The solutions are the same – The New York story
14

15. The solutions are the same – The Onslow Story
• The Onslow story
• Home of Australia’s largest distributed energy resource (DER) microgrid.
• 50% of the town’s electricity needs to be serviced from renewable energy sources.
• Includes a mix of distributed energy renewables, conventional gas powered generation and energy
storage.
• Will reduce cost to supply Onslow
• Will provide more flexibility for customers

16. • Electricity systems supplied by millions of micro-
generation sources (not a handful large centralised
generators) need new control architectures
• Microgrids can provide this architecture at a local level and
enable thousands of DERs to operate in harmony and
constantly balance supply and demand
• Large traditional grids may be re-architected over time for
optimal efficiency as a federation of microgrids; usually
functioning together but sometime independently (to
minimise widespread outages).
Future electricity grids may be a ‘federation’ of
microgrids
DER microgrid

17. Horizon Power: ‘Microgrids are us’
Crea8ng Customer Choice by being
the world’s best microgrid
company

18. Trials consolidating our expertise

19. Onslow DER – show case for resolving complex
technical and social problems

20. Onslow - Technical Details
Will include:
• A solar farm
• More baSery storage
• Behind the meter solar
• Product offerings:
⁻ Roof leasing
⁻ Community solar
⁻ Community baSery
⁻ Finance packages
⁻ Green energy trading
⁻ Alterna@ve Powerplans
• Engaging with the community
DER microgrid

21. Onslow Microgrid Regulation
Based on performance improvement and delivery of lowest system cost
Light-handed regula@on
Performance improvement
model
Consumer and prosumer led4
Adequate public disclosure
Bankable
and… also very low cost
Heavily regulated
High performance standards
Significant public oversight
Tradi@onal U@lity model
Un-bankable5
high cost
Unregulated
Low performance guarantee
Limited transparency
Difficult to finance3
but… very low cost
Lower regula@on Higher regula@on

22. Onslow – Indicative Pricing Model

23. Offgrid lowering overall ‘ system cost’

24. Our Philosophy
We believe that everyone should WIN from the new energy economy
Individual
customers
The
Community
as a whole
Shared
system
we all
depend on

25. Energy Revolution – global perspective
California
New York
Korea
• Total commitment to climate change
• LA will abide by Paris accord regardless of Admin
• More renewable energy jobs than whole
of US coal industry
• Regulatory driven integra@on of DER/ DSP will
be used to spawn crea@on of microgrids
• Focus on crea@on of jobs/industry
• Focused on revolu8on which they see driven by
renewable energy, storage, electric vehicles and
microgrids
• Focus on crea8on of 500K jobs by 2030
Australia

26. Australian Microgrid Opportunity

27. Australia’s own REVolution - MATILDA
M A T I L D A
• Microgrid
• Architechture
• To Integrate
• and Leverage
• Distributed
• Assets
WA / Australia- our own REV
• Distributed Systems Provider
• Based on exploita@on of microgrids
• Holis@c approach to Energy Policy
• Economic Development- jobs