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

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

3. 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

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

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

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

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

8. 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.

9. Electricity costs – 20% rise in 2012

10. 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.

11. 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

12. City East Cable Tunnel Project
3.2km tunnel
132kV cable

13. Wind
More wind capture
Grid integration

14. Doireann Barry & Paul Smith ESB National Grid, Ireland

17. 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

18. Photovoltaic
Reduce costs

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

20. 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.

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

22. 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.

23. 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.

24. 100% Renewables Report - AEMO

25. 100% Renewables Report - AEMO

26. 100% Renewables Report - AEMO

27. 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.