Electrical Energy How is it generated and distributed? Why are electricity prices rising so quickly? What are renewables and what are the issues?

Generation Sources Coal Gas Nuclear Hydro Oil Renewables (Wind, PV, Solar thermal) Large scale e.g. 1GW per station Medium scale e.g. 100-300MW

Global supply of electricity sources (TW Hours) 8,000 4,500 2,800 3,200 1,100 200 50 50 Coal Natural Gas Nuclear Hydro Petroleum Biogas & Wastes Geo-thermal Solar / Wind Data: IEA, AWEA, DOE Energy Information Administration

Traditional Power System 275 kV 132 kV 33 kV 11 kV 415 V Distribution Transmission Generation Users

Network Evolution Generation Transmission Distribution 275 kV 132 kV 500 MW 20 MW Renewables 5 MW

Transmission-connected generator Network Transformation Transmission-connected generator Biomass Transmission system Grid supply point Distribution network Customers/ PV generators Combined Heat and Power

Market players in Australia Generators Delta, TRUEnergy, Macquarie Generation Transmission network operators Transgrid, Power link Distribution network operators Endeavour, Ausgrid Retailers AGL, Origin

Electricity costs Each market player has to earn an income. Each dollar you pay in your electricity bill is distributed as follows (approx): Generation – 20 cents Transmission – 20 cents Retailer – 20 cents Distribution – 40 cents What does this mean? Only 20% of your bill buys the energy that you use.

Electricity costs – 20% rise in 2012

Electricity price rise – networks Of the 18% rise in 2012, 8% was for ‘poles and wires’ capital investment: Meet growing loads Changing energy use patterns Rising peak demand Replace ageing assets Improve network security and reliability.

Electricity price rise – carbon price Of the 18% rise in 2012, 9% is due to the carbon price: $23 per tonne of Carbon Hits coal generators particularly coal Incentivises renewables…and gas

City East Cable Tunnel Project 3.2km tunnel 132kV cable

Wind More wind capture Grid integration

Doireann Barry & Paul Smith ESB National Grid, Ireland

Problematic Wind Profiles From the analysis Wind Power Series presented, a number of problematic profiles emerged These wind profiles are problematic because of Timing of the occurrence Reduction in energy over a short period of time

Photovoltaic Reduce costs

PV Output Profiles Output Per unit Time of day Site 12, Day 4 Month 3. Reasonable output power, cloud cover minor and consistent.

PV Output Profiles Output Per unit Time of day Site 12, Day 5 Month 3. Reasonable output power but a number of rapid changes due to cloud cover.

PV Output Profiles Output Per unit Time of day Site 12, Day 6 Month 3. Poor output power.

Poorly Chosen Site Morning shade at site 1 Output Per unit Time of day Site 12 and Site 1, Day 4 Month 3. Reasonable output power, cloud cover minor and consistent.

Problematic PV Profiles PV output does change rapidly. PV is only available during daylight hours so does not contribute to evening peak demand. PV is an expensive technology. PV reached ‘Grid parity’ in Australia in 2011.

100% Renewables Report - AEMO

100% Renewables Report - AEMO

100% Renewables Report - AEMO

Summary Primary energy source for electricity is fossil fuel. Electricity prices rising in 2012 due to need for capital investment and carbon price. Renewables are a useful source of energy but have potential issues when connecting to the grid. AEMO’s 100% renewables report represents first reasoned appraisal of the possibility.