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How It Works

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Energy Market For Smart People

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How It Works

  1. 1. Whats reallydriving electricityprice increases?
  2. 2. How the National Electricity Market Works ill Electricity BGenerator Transmission Retailer ‘your bill’ and Distribution
  3. 3. What really makesup an energy bill? 14% ill ill Electricity B The retailers 41% Electricity B $ charges Networks 34% Wholesale price of power 6% 5% the Other carbon green price schemes [1] Building and New maintaining infrastructure of network makes your bill higher[1] Forecast data from Australian Government, National Energy SavingsInitiative Discussion Paper pg 5, for 2012-2013
  4. 4. Network expenditureis growing fastest 2010 2015 2030 [2] [3] $46 Billion $240 Billion[2] Ernst and Young (2011) Rationale and drivers for DSP in the electricity market – demand and supplyof electricity Prepared for the AEMC Power of Choice Review - giving consumers options in the way they use electricity[3] Australian Energy Markets Commissions, Fact Sheet 2: demand side participation and prices
  5. 5. How networks are used 12 12 11 1 11 1109 2 3 Most of the 10 9 2 3 Peak time January Rare peak times8 7 5 4 time (day) 8 7 5 4 (evenings) (40 hours /year) hot or cold days 6 6 100%
  6. 6. Network spending over five years (2010-2015) = $46 billion 21.4 Peak Demand 100% $ Billion Growth + 24.6 Total $ Billion annual demand =[2] Ernst and Young (2011) Rationale and drivers for DSP in the electricitymarket – demand and supply of electricity Prepared for the AEMC Power $ 46 Billionof Choice Review - giving consumers options in the way they use electricity
  7. 7. The Solution ! 50% A set of Will That could [4] smart system unlock save billions changes benefits[4] Think Small 2012: The Australian Decentralised Energy Roadmap. Institute for Sustainable Futures, University of Technology Sydney.
  8. 8. Where will the savings come from ? 22608 MW 19 % 46 Cogen-trigen Energy efficiency (10423MW) % (4216MW) Storage 2% (380MW) 4% Local renewables 25 % (875MW) Local bioenergy (1032MW) 5% Peak demand measures (5682MW)[4] Think Small 2012: The Australian Decentralised Energy Roadmap. Institute for Sustainable Futures, University of Technology Sydney.
  9. 9. Why is it green? 73MT CO2 per year Could save 35% More energy Prevents local of Australia’s 2009 supplied by impacts of mining and electricity sector renewables building high-voltage emissions[4] transmission lines[4] Think Small: The Australian Descentalised Energy Roadmap, ISF. The International Energy Agency estimates up to 60% of global emissions reductions must come from efficiency.

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