1. Air-conditioning as part of a demand response strategy: A bigger picture
Ozone Secretariat workshop on energy efficiency opportunities while phasing-down HFCs
Vienna, 10 July 2018
Chris Dunstan
Research Director
Institute for Sustainable Futures
University of Technology Sydney
isf.uts.edu.au
Photo: Energy Queensland

2. Key message:
Globally, the greatest contribution that air conditioning can make to sustainable development and reducing energy costs is via smart control and demand response (DR).
Target 2 degrees two things EE and RE
A/C DR
Prices & Tech RE EE
IEA, World Energy Outlook, 2017

3. How A/C contributes to peak demand and costs
Each 2kWe A/C requires AUD$2,500 - $7,000 of additional electricity network and generation infrastructure (AUD$1 = 0.63€)
“capacity that caters for less than 40 hours a year of electricity consumption (or less than 1 per cent of time) accounts for around 25 per cent of retail electricity bills” – almost exclusively when people turn on air-conditioners in summer.
- Productivity Commission (Australia), Report into Electricity Network Regulation, 2012
A/C ~doubles home electricity peak load kW
Sydney, (Productivity Commission, Report into Electricity Network Regulation, p.384)
“The real cost of a 1 kW air-con is $300 per year while the … customer is only paying $12 per year“
- Energy Retailers Assoc. of Australia
Each 2kWe A/C requires AU $2,500 - $7,000 of additional electricity network and generation infrastructure
(Productivity Commission, Report into Electricity Network Regulation, Oct 2012, p. xxx )
Productivity Commission, Report into electricity network regulation, Oct 2012, p.335
Combine with 50% of the pop in the tropics by and e.g. India 45% AC peak demand
Residential A/C accounts for ~30% of total electricity peak demand in Australia

4. A/C Demand Response example: Queensland fast facts
Area: 1.8 million sq km (~3x France)
Population: 5 million
Avg. summer max. temp: 28°C (Brisbane)
Peak demand: 7,641 MW
Rooftop solar: >2000 MW

5. A/C Demand Response example: Peak Smart
Operated by Energy Queensland (electricity distribution network business)
Once off cash incentive up to AU$400 to household to purchase “Peak Smart” A/C or install load controller on existing A/C
Energy Queensland can remotely switch A/C to economy mode in peak period
Customers can opt out at anytime by removing controller (needs electrician)
58 MW of load reduction (Peak Smart)
(Total DM: 850 MW = 11% of peak demand)
87,000 customers
Load reduction: 0.7 kW per customer
Cost of load reduction: $81/kW/yr
(Assuming $400 and 7 year life)
Short video::

6. Indicative cost of firm capacity to replace coal
>$6000
… but Demand Management is cheaper
(and avoids network costs)
Gas generation = cheap capacity…
For every complex problem there is an answer that is clear, simple, and wrong.
- H. L. Mencken
Based on:

7. The “Duck Curve”: - Rising evening demand (due to heating and cooling)
- Falling daytime demand (due to solar power)
The “Duck Curve”:

8. Real time monitoring of my solar output and demand
DR Example: Solar pre-cooling
Remote and/or
automated
control of A/C
Real time monitoring of my solar output and demand

9. A/C DR
Prices & Tech RE EE
Conclusions
1. A/C Demand Response is crucial to cut costs & carbon emissions
5. Also requires energy efficient buildings and equipment
2. This needs smart, remote monitoring & control
Air-conditioning is crucial
AC contribution to costs
Peak Smart
Comparing capacity costs (incl. network)
Duck curve
Solar pre-cooling
Local costs NOM
4. This needs engagement with power suppliers
3. This needs time-varying electricity prices

10. Thank you Chris Dunstan chris.dunstan@uts.edu.au Institute for
Sustainable Futures
isf.uts.edu.au