wipro energy storage webinar - managing and maximising value from distributed energy storage
TRANSCRIPT
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Managing and Maximising Value from Distributed Energy Storage
Introducing today’s panel of Experts from the Industry
FELIPE KOVACIC(previously
Business Development -
Large Scale Distributed
Generation at Origin Energy)
MICHAEL ANTHONY
(CEO, 360 Storage,
Leading solar PV and battery storage reseller,
Australia)
IAN ROBINSON(Head of New
Business, Endeavour
Energy)
NAZZARENO LAGAMBA
Moderator(Digital &
Transformation Consultant,
Wipro Limited)
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Managing and Maximising Value from Distributed Energy Storage
Context
306.1 378.6 468.2579
716.1
2015 2016 2017 2018 2019 2020
GW
Year
GLOBAL SOLAR PV CUMULATIVE INSTALL SIZE UNTIL 2019
High Scenario - Solar PV Install Base
300 500 1000 1800 27004700
75007900
1150014200500 700
10001500 2000 4500 7000
900013000
18000
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 USD
Tho
usan
ds
MW
Year
WORLDWIDE FORECAST OF BATTERY CAPACITY (MW) AND ANNUAL REVENUE (USD)
Annual Power Capacity (MW) Annual Revenue (USD)
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Managing and Maximising Value from Distributed Energy Storage
Agenda
How distributed energy storage is disrupting the electric utility industry and where the future lies
What is in it for multiple stakeholders such as retail and distribution utilities and distributed energy storage providers
How dynamic management of distributed energy storage gives rise to a variety of new services and revenue models
Summary and Questions
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Managing and Maximising Value from Distributed Energy Storage
Disruptive Change
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Managing and Maximising Value from Distributed Energy Storage
How distributed energy storage is disrupting the electric utility industry
Following PV trend: someone is going to sell them, it might as well be “us” (retailers)All of the Big 3 Australian
Energy Retailers are selling distributed energy storage battery systemsRetailers already working with
some DNSPs for collaborative solutions deferring network augmentation costs
Note: Includes Residential, Non-residential and Utility Scale
0
50
100
150
200
250
300
2016 2017 2018 2019 2020
AUSTRALIAN ESTIMATED ANNUAL BATTERY INSTALLATIONS (MW)
• DNSP tariff structures driving incentives for batteries with peak demand reductions
• Supply security (SA Blackout) driving interest, not only in SA (200%+ increase), but all Australia (140%+ increase)
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Managing and Maximising Value from Distributed Energy Storage
Market Drivers – Growth is being driven internally and externally
1. Communities looking for reliability
2. Network businesses looking to CAPEX
3. Govt encouraging local DER generation
4. Developers driving growth
• Communities and rural towns at the end of the grid that have frequent blackouts are have demonstrated a willingness to adopt Microgrids with 100% renewable generation and backing from government.
• The northern NSW town of Tyalgum is considering a proposal to go 100% renewable and to possibly quit the grid altogether. (Tyalgum spends $700,000 – $750,000 a year on electricity, (net consumption of 2.4GWh). 55% of this spend ($385,000), is paid to local operator Essential Energy for network services).
• In WA, the mining town of Ravensthorpe as well as Kalbarri may go off-grid driven by safety, reliability factors and financial savings.
• Network operators are pushing for Microgrids to avoid costly upgrades of ageing infrastructure and maintenance costs involved with replacing poles and wires, and avoid huge costs involved with connecting a community to the grid.
• States are urging network operators to explore localized generation and delivery of electricity. For example, Ergon sees the potential to take individuals and communities off-grid and are already installing battery storage to ease the pressure on its remote network.
• West Australian Energy Minister has instructed Horizon Power to investigate renewable based Microgrids as a means of providing cheaper and reliable power to regional areas.
• Experts even say new housing estates may be built that do not connect to the grid, offering instead free electricity, and even free EV’s to residents.
• Developers are able to increase the saleability of sites through offering reduced energy bills to prospective buyers.
5. Partnerships are forming
• Partnerships are being formed between energy companies and housing developers to take entire communities off the grid. For example, Brookfield Energy signed a partnership with property group LWP to build a new suburb - the property at Huntlee will be self sustaining and not need to connect to the grid.
Sources: Reneweconomy, cleantechnica, onestepoffthegrid
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Managing and Maximising Value from Distributed Energy Storage
Opportunity
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Managing and Maximising Value from Distributed Energy Storage
What is in it for multiple stakeholders in the utility industry
• Retailer understands consumer is no longer single source, but multi-source prosumer. The evolution: Grid Grid + Solar Grid + Solar + Demand Management (for Business and now Consumer) Grid + Solar + Battery + Demand Management? (Some retailers)
• Allows for more Share of Mind / Share of Wallet
• Integrated solution provider, more convenient one stop shop• Bundled versus Unbundled (different to current fintech disruption)• Customer does not want to receive more bills, but a few as possible and for as
little as possible, distributed energy storage has created more economic Consumer & Producer Surplus
• Makes customer stickier due to capital requirement nature of solutions
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Managing and Maximising Value from Distributed Energy Storage
Benefits to the Grid are significant
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Heavy Load.
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Key Questions:• Are the regulatory incentives for reducing capex
sufficient?• How can Distributors monetise investment in
distributed energy storage?
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Managing and Maximising Value from Distributed Energy Storage
What is in it for distributed energy storage providers
New business models, delivering the customer
an experience and generating multiple new revenue opportunities
Greater insight into customer behavior
Collaboration opportunities with
Distributors
Better energy security Ongoing customer conversation
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Managing and Maximising Value from Distributed Energy Storage
Spectrum of New Services
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Managing and Maximising Value from Distributed Energy Storage
New Services and Business Models through dynamic management
Multi-source energy prosumer means multi revenue streams
Retailer financed/owned battery solution allows for: • Distributed dispatchable fleet solutions (Aggregated generation for critical
peak price revenue)• Deferred network augmentation cost benefits (but have to contend with
DNSP monopoly purchasing power position)• Additional financing returns where net benefits exists
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Managing and Maximising Value from Distributed Energy Storage
Opportunities for distributors or their ring fenced subsidiaries
Community Microgrid (Embedded Network Operator owned): Community interconnected by a privately owned grid, which includes local generation, storage and demand management schemes (e.g. residential dev, shopping centre or high rise complex)
Key Characteristics:- Primary Customer: Developer but could include
isolated communities or zoned brownfield areas- Value Proposition: Demand and supply
management with lower energy costs for consumer (increased home value)
- Core components: Private grid/embedded network with local storage, generation and demand management capabilities
Zone substation deferral: Centralised battery that is discharged during peak to overcome an infrastructure capacity constraint (usually within a zone substation as the most expensive single point of infrastructure (serving 20,000 homes)
Key Characteristics:- Primary Customer: Distributor- Value Proposition: Zone substation or feeder
augmentation deferral- Core components: Storage capacity with
centralised control
Facilitator of StorageDistributor optimises the integration of storage into the network to protect the reliability of the network and minimise the wholesale energy price charged to consumers.Purchase network support benefits from storage providers
Key Characteristics:- Primary Customer: Retailers or large energy
providers- Value Proposition: Leveraging the network to
optimise the benefits on DER investment- Core components: Smart grid, enabler for
dynamic price signals and interconnections for real time transactions between players
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Managing and Maximising Value from Distributed Energy Storage
New Services – The point of view from a distributed energy storage provider
Information linked with
command and control
functionality drives
opportunity
Pay as you go energy
Community ownership, community
sharing
Integration with home
management services, IOT
Peer to peer energy exchange
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Managing and Maximising Value from Distributed Energy Storage
In Summary
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Managing and Maximising Value from Distributed Energy Storage
Wipro Cognitive Intelligence Platform Solution – Enabling new Possibilities
Provides single channel visibility to customer about consumption and savings
Dynamically optimizes consumption, reducing bill by upto 25%
Incorporates weather changes, provisions for demand based tariff
Provides continuous touchpoint to consumer by personalized advice
Provides channel to offer additional services, increases mindshare and stickiness Ability to aggregate customers for providing demand management or spot market
hedging
Solution is agnostic to battery and inverter make and model
Solution is Cognitive as it learns and improves the optimization
Offered as a fully managed service on the cloud Incorporates other satellite services like customer management, rapid billing, issue
management, program definition, payment and reconciliation
Available on a subscription basis or on agreed commercial model
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Managing and Maximising Value from Distributed Energy Storage
Questions and Answers?
Please use the Webex chat feature
to send your question to the Host
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Managing and Maximising Value from Distributed Energy Storage
Thank You!
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Managing and Maximising Value from Distributed Energy Storage
Thank You!• The webinar has now ended. Thank you for joining!
• For more information on product, events, assistance or enquiries, please reach out to [email protected] and we will revert back to you shortly