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Managing the Transition

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Presentation on theme: "Managing the Transition"— Presentation transcript:

1 Managing the Transition
Intro. We are in the business of managing transition to clean, distributed energy at precinct scale - micro-grid with solar, storage and local sharing of energy. We have choices - reform the market or re-design the market - they are not mutually exclusive. But our focus is re-design.

2 Building a Service Ecosystem
Donations, rewards and investment (crowd) finance Crowd finance platform using donations, rewards and investment Project development, and consulting services Automated, web-based energy services connected to an online marketplace Intro. Used to be at the energy market reform end of town, switched focus to hands on project development (for better or worse). We are in the business of managing transition to clean, distributed energy at precinct scale - micro-grid with solar, storage and local sharing of energy. We have choices - reform the market or re-design the market - they are not mutually exclusive. But our focus is re-design Today, I’ll do some myth busting - three common barriers we hear - and close out with a project we are working on currently.

3 We get results $13m EPC with State (VIC) Gov
Delivering projects worth $10m+ for NSW Gov in Social Housing Upgrades Ground breaking community energy projects Over $250,000 raised in two years, doubling every 6 months Over 100kW projects completed, round 2 Beta trials launching August 2016 Intro. Used to be at the energy market reform end of town, switched focus to hands on project development (for better or worse). We are in the business of managing transition to clean, distributed energy at precinct scale - micro-grid with solar, storage and local sharing of energy. We have choices - reform the market or re-design the market - they are not mutually exclusive. But our focus is re-design Today, I’ll do some myth busting - three common barriers we hear - and close out with a project we are working on currently.

4 Ambition to achieve 100% renewable energy with benefits to community
An Example: RENEWABLE NEWSTEAD Ambition to achieve 100% renewable energy with benefits to community Solar is cheaper than the grid, but what is in it for the network business?

5 An Example: RENEWABLE NEWSTEAD MOU with Powercor enabled data sharing and collaboration on commercial model design High level business plan and commercial model only. Market-based EOI and RFQ process will give us the details We take our own medicine, so decided to bring Powercor in as a partner, signed an MOU, enabling collaboration on business model design

6 An Example: RENEWABLE NEWSTEAD Business as usual would mean 30%-60% revenue drop for Powercor, exacerbating death spiral risk With Powercor collaboration, we can cut bills by 15%+, and provide ROI of 8%+ to solar investment on rooftops Managing the transition is about managing the death spiral threat. Network companies probably need to take a revenue hit, but how much? Thats the negotiated outcome that is key to the transition

7 “MARKET REGULATION MAKES IT ALL TOO HARD”
Partner or perish - the right partner can navigate regulatory complexity Regulatory exemptions and/or white labelling services are functional “work-arounds” Market regulation complexity is often an issue because an organisation is trying to start from scratch and do everything in-house. Market regulation is complex, no doubt. But you can partner with a network business or retail business that knows how to navigate these issues. You can also parter with service providers, that can white label their systems, provide back-end support and compliance to deal with regulatory issues. So there are these functional work-around to regulatory barriers that often go unexplored.

8 “THE TECHNOLOGY IS NOT PROVEN”
Reliable off grid and micro-grid energy supply is mature Don’t re-invent the wheel, just fit one that looks right to your chassis and start driving Too often in Australia, we fall for the idea that electrons flow the other way in the southern hemisphere. We need to learn to embrace what has worked in other jurisdictions and learn to trust partners that have experience. AGL solar farm example - ARENA subsidy could have fully funded the equivalent solar direct to rooftops

9 “A FEASIBILITY WILL SHOW US THE WAY”
Feasibilities kill projects and innovation and often don’t reveal more than a coffee chat We typically know if projects will be viable, the only question is how you want to deliver it The Mill example in Castlemaine.

10 Thank You Talk to the graph


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