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A Brookfield Utilities Company

Huntlee Energy Utility

STRICTLY PRIVATE & CONFIDENTIAL

RESIDENTIAL

COMMERCIAL

GAS

GENERATORS

BACKUP DIESEL

GENERATOR

BATTERY

STORAGE

ROOFTOP PV

THERMAL

ELECTRICITY

EXCESS SOLAR ENERGY

NATURAL GAS

LEGEND:

ROOFTOP PV

Generation and Control

Electricity Microgrid,

Microgrid Management System

Battery Storage

Gas Generators

Diesel Backup Generators

4 MW Solar Farm

Residential/Commercial

Solar Panels

Metering and Telemetry

Smart controllers

The Huntlee Community Energy

Company

GENERATION AND STORAGE

TRANSFORMER KIOSKS

MICROGRID MANAGEMENT AND

METER DATA MANAGEMENT SYSTEMS

Faults located and

isolated in milliseconds

Peer to Peer Communications

Microgrid management system

Arc Suppression, or Petersen Coil installed in the microgrid network

Source: http://www.trenchgroup.com/en/Products-Solutions/Coil-Products/Earth-Fault-Protection-System/Arc-

Suppression-Coils

“The most common type

of failure in an electrical

power distribution

network is a single

phase-to-earth fault.”

– System can remain safely energised with a fault present, reducing

downtime.

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Love this idea! Reducing carbon

footprint and energy costs

sounds like a no brainer.

Female, Interested, Non-

Huntlee

Never before in all my years of

paying for energy supply have I felt

like I was not only getting a great

deal but also contributing to the

community and environment

Male, Bought, Huntlee

Customer response

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Outcome objective

“Delivering higher renewable penetration in

new land and housing developments

through edge of grid microgrids”

Benefits, lessons learnt and barriers

This measure received funding from

ARENA as part of ARENA’s Emerging

Renewables Program

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AUD$250M investment opportunity

(nominal)

Almost there!

Gap due to battery prices, high cost

for first mover, regulatory

uncertainty

ARENA Grant project funding

R E T A I L

A U S T R A L I A

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Economic Value

streams

Value capture for the community

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Economic benefits for the energy

market

~100,000 km of

network could be

classed as edge of

grid. Microgrids could

provide savings of up

to $50 M Energy Supply Association of Australia

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Economic benefits for the wider community

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Environmental Benefits

Environmental Benefit

Environmental Benefit

~6 tonnes of CO2e saved per

dwelling in Huntlee per annum…

Up to 2031 there are 60,000 new

dwellings in the Hunter, 181,000

in Greater Sydney, and 700,000

in SEQ……

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Social Benefits

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29 August 2015 First time three hurricanes were spiralling at

the same time in the Pacific Ocean.

Community resilience

15 MW CHP and 5.3 MW solar

kept Princeton university live

throughout Hurricane Sandy

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I love how it’s our own

communities supply

Female, Bought, Huntlee

The good thing about Huntlee is

that it is a community focussed

development which puts the power

(sorry about the pun) in the hands

of the residents rather than large

corporate suppliers.

Male, Interested, Non-Huntlee

Social benefits - customer response

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Lessons Learnt

Lesson learnt - Microgrids peak just like

Macrogrids

Lesson learnt – good data and

predictable control is invaluable

Lesson learnt – modelling optimal

generation mix in microgrids is hard.

There no precedents and many

variables.

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What is a microgrid investor looking for

in batteries?

• Total cost of storage

• Total LRMC of total system

• Predictable long term price curve

• Which technology for which purpose when?

• Environmental benefits

• Technology maturity

• Operating risks and liabilities

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Battery chemistry – four types

considered • Aqueous Hybrid Ion

• Lithium Ion

• Zinc Air

• Flow Redox

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Battery chemistry – Considerations

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Can we only rely on L-ion cost curves?

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Centralised vs batteries at the home?

• Economies of scale – inverters

• Simpler logistics/maintenance

• Managing fire risks and liabilities

• Hard to quantify reduced

reticulation costs

But

• Efficiency in avoiding DC to AC

conversion at the home

• Better redundancy

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All seemed close on a cost per kWh – so others

attributes important

• Matching what we need at each stage of development • Early stage – smoothing out intermittency to allow generators to start

(10-15 min gap) - smaller battery with high capacity discharge

• Mid term – Peak shaving

• Long term – Peak shaving and peaking plant replacement

Lesson learnt – What to do ?

Can we ever be 100% Solar?

Household solar penetration, solar farms, consumer behaviour, battery/solar

pricing

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Barriers and how to

solve them

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• Microgrid market – needs both off-

grid and embedded approaches

• Interconnection rules – connection

agreements, processes, technical

standards and tariffs

• Proportionally recognising the

value that microgrids bring to the

grid and that the grid brings to

microgrids • Mechanism to share NEM network

benefits through Rit-T and Rit-D

process

• Standby charges

• Obligations to supply

• Operator of last resort

Interfacing with the wider network

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Next steps

• Articulate compliance with NEO

• Create exemplar project – Huntlee

• Establish microgrid license categories for

off-grid and embedded networks

• Self regulate to comply with wider grid

• Create appropriate regulation for customer

contracts, pricing, local generation, provider

of last resort and networks

• Maximise value-capture mechanisms

The socially beneficial disruptor

enabling a structured transition to

new energy markets.

Time to set up a new market.

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Off-grid Embedded Network

Model

ACCC/ACL Consumer law and ACCC

applies including EWON

Consumer law and ACCC applies

including EWON

Customer

contracts

and pricing

Unregulated Retail under NREL and NERR (If

under retail authorisation)

Distribution – basic obligations. If

Distribution registration then

obligations to connect.

Provider of

Last resort

Generator, retailer and

network of last resort -

contractual

Generator – contractual

Retailer of last resort – regulated

Distributor – ambiguous – Under

ESA IPART will be obligated to

step-in

Regulatory recognition

Enhanced liveability

Lessons learnt

Microgrids share many attributes with the Macrogrid

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Market transition