Unpacking Electricity Cost Structure
Blockchain enabled technology for microgrids
Presenter
Vinod Tiwari4 Sep 2017
WA Electricity Market
The Wholesale Electricity Market (WEM) for the South West Interconnected System of Western Australia (SWIS) commenced operation on 21
September 2006
The WEM aims to facilitate competition and private
investment
SWIS and WEM
Source: https://www.perthenergy.com.au/about-us/driving-electricity-market-reform/
SWIS Grid - SWIN
The South West Interconnected System
(SWIS) incorporates over 7,800 km of
transmission lines.
>$6 Billion was transacted in 2015-16.
There are more than one million customers
in the WEM.
5,798MW of registered generation capacity, including 513 MW of
non-scheduled generation
Energy Trading Mechanisms in WEM
2004
In order to implement the WEM in accordance with the Market Rules, the Independent Market Operator (IMO), a government body, was established in 2004
to oversee its administration and operation.
30 Nov. 2015
Following a government review, on the 30th November 2015, the Australian Energy Market
Operator (AEMO) assumed control of the operation of the WEM
Short Term Energy Market (STEM)
Electricity Cost Structure
Typical Example
Energy: approx. 25%
Network Charges: approx. 40%
AEMO Capacity charges: approx. 25%
Renewable Energy: approx. 8%
Others: approx. 2%
What is a microgrid
A microgrid is a localised grouping of distributed electricity sources, loads and storage mechanisms that can operate both as part of the central grid or independently as an island
A microgrid can be powered by distributed generators, batteries, and/or renewable resources like solar panels, wind, diesel etc. Depending on how it’s fueled and how its requirements are managed, a microgrid might run indefinitely
It is a locally
controlled system
it can function both
connected to the
traditional grid
(megagrid) or as an
electrical island
Smart Grid
Smart grid is a term given to the modernisation of
electricity networks. These grids allow utilities to access more information and provide better demand management.
By connecting communication, controls, computers and new
technologies together, a smart grid also makes electricity
supply more efficient, secure and environmentally friendly.
What is the blockchain
- A database (ledger) that no one is in control of but
is very secure
- It can be used to process transactions, act as a
hallmark or track provenance
- Information in the ledger is held in nodes
(computers) and to change an entry in the ledger,
majority agreement (consensus) of the nodes is
required
- Uses cryptography
Traditional vs blockchain databases
Microgrid -
Remote
Power
Systems
Customer
Microgrids
Virtual
Microgrids
Set up Microgrid as a Utility
• Embedded
network
arrangement
• Solar powered
apartments
• Behind the meter
billing, peer to
peer energy
trading
Peer to Peer Energy Trading
Billing and Trading
Consumer becomes Prosumer
Energy can be traded at Peer to Peer (P2P) or Village to
Village level
Blockchain will record flow of energy
Smart metering
Billing (pre – paid, pay as you go or post pay)
Microgrids for Africa With Africa’s push for rural electrification, microgrids — especially those that
use renewable energy rather than expensive, polluting diesel generators – are
fast becoming a cost-effective way to extend electrical service.
Small-scale options, commercialized by the private sector, may be the only
way forward where there are shortcomings in public policies or institutions,”
according to the International Energy Agency’s Africa Energy Outlook report.
“New business models, often involving pre-payment or pay-as-you-go for a
certain level of service, underpin some of these commercial efforts, but
expensive finance, regulatory barriers in some countries and limited capacity
among the poorest to pay for energy remain major constraints on scaling up
the provision of rural energy services,” the report states.
Thank You