1. Renewable Energy Innovation In Canberra Jon Sibley Director, Energy and Waste Policy Environment and Planning Directorate

2. 1.ACT renewable and climate change policies 2.Canberra’s stationary consumption 3.Introduction to our battery storage program 4.Industry development outcomes Contents

3. POLICY BACKGROUND SECTION 1

4. Renewable energy policy objectives Reduce greenhouse gas emissions Invest in large-scale renewables Reduce barriers to small-scale solar CBR as a national energy innovation hub New education services Demonstrate new technology New research collaborations Facilitate and support new enterprises

5. A world leader on climate change action ‘Canberra is ranked #1 in the world for our climate targets, including a 40% reduction on 1990 level emissions by 2020.’

6. ACT GHG Reduction targets 12.3 tonnes/ capita in 2006 4.6 tonnes/ capita in 2020 Australia: 16.5 tonnes/ capita in 2011 Indonesia: 2.3 tonnes/ capita in 2011

7. Action Plan 2 Sources of abatement

8. Abatement wedges 100% renewable energy

9. Renewables investment program 20MW Solar Auction (Fast Track) 200MW Wind Auction 1MW Community Solar 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20MW Solar Auction (Regular Stream) 200MW Wind Auction II 60% Renewable 80% Renewable Household Solar Next Gen Pilot 100% Renewable Next Generation Renewables 200MW Next Gen Renewables Auction (2016) + 36MW Next Gen Energy Storage Auctions (2016-2020)

10. ACT ENERGY CONSUMPTION SECTION 2

11. Uptake of solar in the ACT Reduces ACT summer demand by <4% Reduces ACT winter peak demand by 0%

12. Seasonal patterns of consumption

13. Climate and energy relationships MWh - Electricity TJ – Natural gas

14. Residential vs. Business demand Winter evenings have high demand due to residential heating Second highest ever demand: 8 June 2011 (611MW) Summer afternoons have high demand due to commercial air conditioning Highest ever demand: 2 February 2011 (613MW)

15. THE VALUE OF BATTERY STORAGE SECTION 3

16. Next generation storage auctions Competitive cash grants for installing distributed battery storage (with PV). –Modelled on reverse auctions Expect to support 36MW by 2020 –Household benefits –Avoided network investment –Ancillary services –Local investment benefits

17. Small customer peak demand Net system load profile maximum demand: 391MW Daylight hours

18. Wholesale vs. retail value of storage

19. The value of network support Savings of $61M to $220M in present value terms on transmission and distribution investment 36 MW reduction in electricity peak (ACT) from energy storage systems in 2020

20. The value of ‘ancillary services’ To keep operating frequencies at 50htz (+/-0.3%) Including voltage control System restart services (self-energising power sources) Plus, system inertia

21. INDUSTRY DEVELOPMENT BENEFITS SECTION 4 Local Investment Plan weighted at 20% of large- scale proposal score

22. Local renewable energy industry growth New wind asset operation centres Renewable Energy Skills Centre of Excellence New education and research collaborations with ANU $12M Renewable Energy Innovation Fund o Precinct Initiative

23. Renewables Precinct Renewables and battery programs ANU research and education services City business spaces Strong collaboration with local utility Trades training for industry Regulatory reform Venture capital

24. Microgrid opportunities in Indonesia Developing microgrids for Indonesia Based in CBR renewables Precinct Government 4 year plan - 36.6GW new capacity by 2020 (11.7% compound growth!) Transmission will be a bottleneck Significant role for microgrids and distributed energy

25. Thank you! Contact me: jon.sibley@act.gov.au, 02 62051889