New Electricity Distribution Models

Electricity In NSW Forum

New Electricity Distribution Models

27th November 2014

Long and Skinny – Challenges and Opportunities

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Market Disruption

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Policy Carbon Tax, Mandatory Feed In Tariffs,

RET, Reliability & Security Standards

&

Productivity

We’ve Done Revolution: It Hurt

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•$2655 (nominal) per customer average over 5 years

•FIT liability to 2028 is estimated at $1.56B nominal

$561m.

Approx $775 per

customer

What Has and What Is Being Done

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Ergon Energy: What needs to be achieved

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We will power the Queensland Economy through –

Strategic Objectives

• Customer choice & control

• Average network price increases below inflation (2015-2020)

• Increased energy productivity

Key Strategic Enablers

• Effective market

• Prudent investment (present – future)

• Efficient service (adapting – EA)

Outcome

• Customer value

• More flexible work practices

• Strong Queensland economy

Capacity: Glass Half Empty or Half Full

7

Generation Transmission Distribution

With falling demand and

consumption combined with

greater distributed

generation there is an

excess of generation

capacity to leverage.

AEMO forecast no new

generation required for 10

years yet mandatory

renewable targets and

Feed In Tariffs still exist

Powerlink advise that

without further

augmentation, there is

sufficient capacity to

support additional load in

North Queensland

equivalent to the Townsville

area. The North West is not

part of the NEM.

Distribution Network is not

effectively utilised,

impacted by reduced

consumption, security &

reliability standards

Possible Futures: But Hybrids Are The In Thing

Reform: How

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Our challenge is to transform the purpose and value proposition

of the grid in the eyes of our people, the owners, regulators,

financiers and our customers, without losing value.

Value &

Opportunity

Open & Equitable Access Platform: Driving An Effective

Market

• Our network will be an

open access platform

that enables an effective

market and customer

choice & control

• 96,000 roof top solar

systems connected at

the end of 2013/14

• Internet of power driving

energy productivity

• Edge Of Grid, Off Grid

• Supply & Demand

become commodities

• Supply vs Service

Reform: Townsville Energy Sense Community

Reform: Open Access Platform

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Batteries are modular, mobile

and the energy deployable.

Adaption

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