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Head in the sand on solar storage (Read 3146 times)
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Head in the sand on solar storage
Nov 2nd, 2013 at 12:53pm
 
I'll admit to some surprise at the speed of developments in renewables and storage. Apparently, some large commercial/industrial consumers are considering going off-grid. The more the incumbents try to shore up their moribund business model, the more progress overtakes them.

...

SA Power networks puts its head in the sand on solar storage


31 Oct, 2013


SA Power Networks in the monopoly Distribution network operator in South Australia.

In a subtle, surprise move, they very quietly recently announced that “If a customer currently receives feed-in credits under the Solar Feed-in Scheme, they will no longer be eligible for receipt of credits once they install a battery storage system or a Fuel Cell system”.

Given that the vast majority of South Australian’s are currently on some type of FIT, disappointingly this policy effectively wipes out the cost effectiveness of using storage in South Australia for the time being.  Intriguingly, only a few weeks ago some Californian Distributors http://solarbusiness.com.au/sa-power-networks-puts-its-head-in-the-sand-on-solar-storage/SA%20Power%20networks%20puts%20its%20head%20in%20the%20sand%20on%20solar%20storage used the same blocking tactics and refused to connect some customers who had purchased solar with storage systems although fortunately, only a  week later http://solarbusiness.com.au/trans-formative-solar-storage-policy-california/ new regulations were introduced that mandated the introduction of storage.

It is somewhat telling that in their own industry briefing SA Power Networks acknowledge that “..as customers and the Industry seek the next technological innovation to reduce electricity demand and reliance on conventional electricity distribution networks, the emergence of fuel cells and battery storage systems is starting to gain momentum”.

Innovation. Reduced demand.  No thought given to embracing the advantages or optimizing the network benefits which could reduce all consumers costs; just an immediate reaction to stop any threat to conventional business models.

And they are monopoly so guess what; you have absolutely no choice and absolutely zero consumer power to challenge their decision. This lack of market power was eloquently and acutely described in the report “Going Solar: Renewing Australia’s electricity options” which was recently released by the Centre for Policy Development.

The report noted that:

Solar consumers have the right to a fair contract with electricity retailers, and one that is not to their financial disadvantage, under the Australian Consumer Law.177 However, the structure of the electricity industry, and relationship between retailers and customers, means that solar consumers have limited market power. Where this constrains consumer choice or creates an uneven playing field for solar compared to other sources of electricity, governments may need to intervene to protect consumer rights” .

Although we are talking about a Distributor in this case, I would think that equally, consumers have virtually no power here and are potentially being financially disadvantaged by this ruling. Ironically, stopping consumers from (potentially) making investments in storage has the bizarre consequence of allowing networks costs to potentially rise, or at least preventing the potential of helping to alleviate them, which would seem to be against the broader community’s interest.

Further, it is also plainly apparent  that this ruling is a retrospective condition, added subsequently to householders signing up for the FIT, which would hardly seem in the spirit of consumer law.

The report goes on to say that:

..the threat posed to ‘gentailer’ profits by rooftop solar is significant and the level of market power and access to information is so heavily weighted in the utilities’ favour that it would be challenging for any consumer advocacy body to get traction. If this proves to be the case, a stronger regulatory approach may be required – particularly if around a million new solar households become disenchanted with the status quo. A recent poll by Essential Media suggests this is more likely than not – power companies are considered the least likely industry to act in the public interest..

The excuse that SA Power networks uses to enact this ruling is that  “…this equipment can cause interference on our network and can impact the quality of supply for other users connected to the local network” obviously implying that they see a (perceived) technical risk.

[continued ...]

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Re: Head in the sand on solar storage
Reply #1 - Nov 2nd, 2013 at 12:54pm
 
[... continued]

Really?Really?

Can someone explain how storing energy from a solar system in a battery and using it in the home to peak times to avoid peak charges (effectively avoiding the purchase of energy) creates a power quality risk? The solar industry is one of the most regulated in the country and I am all for standards and accreditation, don’t get me wrong. Anything we sell or install should be the epitome of quality and safety lest we do ourselves a disservice, but lets not confuse a device that alleviates network load and consumer costs with something that simply threatens the status quo.

Now to be fair, SA Power Networks do talk about an interim process and pending modification of the Small Embedded Generator request process to take into account storage. So the ruling doesn’t say you cant do it, but by default it certainly discourage’s it for pretty much every single South Australian.

We urgently need standards and regulations developed which allow storage on networks and encourage innovation and reduced demand, not policies that block them and dis-empower consumer choice. Let’s hope the modifications to their rules take a much more adaptive and progressive approach.

You can read the relevant SA Power Networks Industry News here.
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Re: Head in the sand on solar storage
Reply #2 - Nov 3rd, 2013 at 2:10am
 
Teething problems
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*Sure....they're anti competitive as any subsidised job is.  It wouldn't be there without the tax payer.  Very damned difficult for a brainwashed collectivist to understand that I know....  (swaggy) *
 
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Re: Head in the sand on solar storage
Reply #3 - Nov 3rd, 2013 at 2:39am
 
heres the thing, how ould the power company know if you are  storing energy from a solar system in a battery and using it in the home to peak times to avoid peak charges
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Re: Head in the sand on solar storage
Reply #4 - Nov 3rd, 2013 at 10:30am
 
Hey hash

Did you expect business to treat the renewables energy with some kind of sympathy about saving the planet...???

If business isn't guaranteed  profit, and possible a monopoly then they will ditch whatever is on the table just as quickly as they embraced it.

Renewables energy will be treated exactly like any other commodity... there are no exceptions to rule.
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1. There has never been a more serious assault on our standard of living than Anthropogenic Global Warming..Ajax
2. "One hour of freedom is worth more than 40 years of slavery &  prison" Regas Feraeos
 
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Re: Head in the sand on solar storage
Reply #5 - Nov 4th, 2013 at 2:01pm
 
Not all are as backward as SA, it seems.

Energy storage – a saviour for networks or a Trojan horse?

By Giles Parkinson on 4 November 2013

Australian network operators are turning increasingly to the use of battery storage to solve their problems with network management, particularly in grid demand. But just as storage looms as a potential glue to keep the networks together, it could just as easily offer the technology and the means to break them apart.

Australian power industry investor Tag Pacific predicts storage has the potential to become a major disruptive technology for the conventional power business – at the same time offering networks a unique opportunity to stabilise their grid management, but also offering customers the opportunity to leave the grid altogether.

Tag Pacific chairman Nathan Wise says the disruption from storage will come because it will challenge the traditional model of centralised generation and transmission over great distances.

The move towards decentralised power generation (such as solar) is changing the relationship with the grid. He says that while storage is needed by the network operators to manage those changes, and new technologies such as electric vehicles, it will will also give clients the option of taking themselves off the grid altogether, presenting a new problem for networks

Tag Pacific builds power systems for the mining and petroleum sector, as well as desigining and building solar installations for residential, industrial and commercial clients, and supplying components. It also installs trigeneration systems and back-up power systems in the CBD and clients such as Sydney Airport.

Tag Pacific, through its MPower subsidiary, is currently running a two-year pilot project for Victorian electricity distributor SP Ausnet, looking at how energy storage systems can address demand problems when the peaks exceed network capacity.

The trial is monitoring power demands within individual households and how the use of stored power during peak-load periods can reduce demand on the network and avoid peak tariff rates, cutting costs for householders.

Wise says MPower is developing the “smarts and controls” that sit around the battery bank and which interact with the grid and the solar systems. The system monitors power demands in individual households and stores power for use in peak-load periods, reducing the demand on the network and energy costs for the householder.

The systems incorporate rooftop solar PV, advanced lithium ion batteries, bi-directional inverters and programmable controllers capable of being monitored and controlled remotely.

Utilities are clearly interested in looking at how energy storage can be used within the networks. Energex, Augrid and others are all undergoing trials and pilot projects to look at the potential to use the technology to boost the reliability of networks, particularly in regional areas, and avoid costly upgrades, and to manage the high penetrations of solar, including in metropolitan areas. They are also looking at electric vehicles, and the role of their batteries – both charging and potential discharging –will also have an impact on grid management.

However, while utilities will use storage as a key element of grid management, Wise says there is also potential for battery storage to be used to take homes, and even businesses and communities  - off the grid.

“You can see how this could be quite disruptive,” he says. It will come down to cost, and where the value of storage can be found and exploited – for either the consumer or the operator.

The company is already seeing the economics of storage work in remote areas where the cost of a network connection is very high. “What will be very interesting to see is as the cost of battery falls, whether that impacts on decisions by households and communities to make that move.”

MPower recently won two awards for community storage and control systems in remote communities in WA, and for off-grid renewable energy storage systems for three communities in the Northern Territory.

The WA system – which also addressed issues of periods of rapid weather change – enabled more renewable energy to be used in isolated electricity networks, particularly in the Pilbara region. The Northern territory system allowed for a significant reduction in the use of diesel.

“We are positioning ourselves at the leading edge of the energy storage and power convergence trend in Australia, which these initiatives show has particular relevance for remote communities and individual households.”

Tag Pacific also provides technologies to the solar industry, and Wise says that while the technology is growing in viability, even as most subsidies are removed, it not yet at a “tipping point.” But Wise says that is not because the economics don’t work, it’s more of a lack of knowledge.

[continued ...]
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Re: Head in the sand on solar storage
Reply #6 - Nov 4th, 2013 at 2:02pm
 
[... continued]

“I don’t think solar is the first port of call for households and commercial properties when they look at energy,” he says.

“They look at network connection and solar as afterthought. The penetration levels show it is certainly gaining traction – but councils are not requiring it to be built on new houses.”

But he says most people that do look at it, find there is value in installing solar. “It’s a lack of knowledge rather than economics,’ he says that is holding the industry back.

Still, Wise says it is a difficult industry because volumes and price changes change so rapidly.  “It’s clear that the cost of solar is going down, and the cost of diesel is going up. It’s one thing for the technology to be viable to a customer, it’s another thing to be able to make money from that business.”
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Re: Head in the sand on solar storage
Reply #7 - Nov 4th, 2013 at 2:03pm
 
ian wrote on Nov 3rd, 2013 at 2:39am:
heres the thing, how ould the power company know if you are  storing energy from a solar system in a battery and using it in the home to peak times to avoid peak charges

My guess: installing batteries would require approval. That would be hard to hide.
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Re: Head in the sand on solar storage
Reply #8 - Nov 4th, 2013 at 2:17pm
 
Ajax wrote on Nov 3rd, 2013 at 10:30am:
Hey hash

Did you expect business to treat the renewables energy with some kind of sympathy about saving the planet...???

If business isn't guaranteed  profit, and possible a monopoly then they will ditch whatever is on the table just as quickly as they embraced it.

Renewables energy will be treated exactly like any other commodity... there are no exceptions to rule.

Ajax is going to teach us how to add up and divide and multiply stuff: wat a big-shot crack smoker he must be  Cheesy ya know how to do deals do ya buddy like every other tryhard wigger who gets off wielding a very short prawn  Wink
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*Sure....they're anti competitive as any subsidised job is.  It wouldn't be there without the tax payer.  Very damned difficult for a brainwashed collectivist to understand that I know....  (swaggy) *
 
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Re: Head in the sand on solar storage
Reply #9 - Nov 4th, 2013 at 4:00pm
 
BatteriesNotIncluded wrote on Nov 4th, 2013 at 2:17pm:
Ajax is going to teach us how to add up and divide and multiply stuff: wat a big-shot crack smoker he must be  Cheesy ya know how to do deals do ya buddy like every other tryhard wigger who gets off wielding a very short prawn  Wink


Still TROLLING with ad homs and insults.

Is that all you were taught in your youth.......!!!!!

You must be a sad little miserable person...!!!!!!
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1. There has never been a more serious assault on our standard of living than Anthropogenic Global Warming..Ajax
2. "One hour of freedom is worth more than 40 years of slavery &  prison" Regas Feraeos
 
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Re: Head in the sand on solar storage
Reply #10 - Nov 4th, 2013 at 4:03pm
 
Ajax wrote on Nov 4th, 2013 at 4:00pm:
BatteriesNotIncluded wrote on Nov 4th, 2013 at 2:17pm:
Ajax is going to teach us how to add up and divide and multiply stuff: wat a big-shot crack smoker he must be  Cheesy ya know how to do deals do ya buddy like every other tryhard wigger who gets off wielding a very short prawn  Wink


Still TROLLING with ad homs and insults.

Is that all you were taught in your youth.......!!!!!

You must be a sad little miserable person...!!!!!!

Lol, mirror  Cheesy
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*Sure....they're anti competitive as any subsidised job is.  It wouldn't be there without the tax payer.  Very damned difficult for a brainwashed collectivist to understand that I know....  (swaggy) *
 
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Re: Head in the sand on solar storage
Reply #11 - Nov 4th, 2013 at 9:14pm
 
BatteriesNotIncluded wrote on Nov 4th, 2013 at 2:17pm:
Ajax is going to teach us how to add up and divide and multiply stuff: wat a big-shot crack smoker he must be  Cheesy ya know how to do deals do ya buddy like every other tryhard wigger who gets off wielding a very short prawn  Wink


DRAH - Consider this a warning.
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...
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Re: Head in the sand on solar storage
Reply #12 - Nov 5th, 2013 at 3:18pm
 
Meanwhile, across the ditch, New Zealand network operator Vector is offering leasing packages to encourage consumers to buy storage.

Quote:
Biggest challenge is for the industry to recognise that traditional thinking and traditional solutions aren’t going to be appropriate going forward.


Exclusive Interview with Gareth Williams, Manager - Strategic Solutions at Vector, New Zealand


Q. New Zealand has one of the highest percentages of renewable energy sources contributing to its power mix in the world (over 70%). Australia has a very ambitious target of 20% of all electricity generated by renewable energy sources by 2020; how does the energy distribution industry need to prepare for this?

A. In terms of New Zealand, you said the country has 70% of RE sources but it’s predominantly hydroelectricity and geothermal which is fairly predictable and manageable. I think the challenge for the distribution industry is the need to incorporate less predictable RE sources such as solar and wind and to deal with the intermittent nature of those sources. So the challenge is trying to work out how to cost effectively distribution companies can facilitate high levels of intermittent RE generation. And also key is to recognise that a lot of that RE isn’t going to be deployed in the traditional central generation model. A lot of that RE, particularly solar, is going to be deployed at customer’s premise. So it’s not a case anymore of distribution companies bringing energy from central generation sources to homes; the generation sources are at the home, so the whole architecture and business models, the thinking for distribution companies, need to change in order to recognise the fact that their role has shifted significantly.

I guess the only thing to be reminded for an Australian audience is that New Zealand doesn’t have any feed in tariff or incentive for solar so we haven’t had the huge uptake that Australia has had. Across the whole of New Zealand there are probably only 1-2000 solar PV systems so, from our point of view, we at least got the luxury to prepare for this shift and to change and grow our business to adapt, rather than having things happening as fast as they have in other parts of the world.

Q. Vector has been internationally recognised as an innovative energy distribution provider. Your solar leasing programme is making headlines around the world in a time where distributed energy generation and solar PV are perceived as a threat to utilities’ traditional business models. What do you think are the industry’s biggest challenges related to RE integration and storage and what needs to be done to overcome them?

A. I think that, on one hand, the new option that customers have to implement their own generation certainly is a threat to the traditional models and it really requires utilities not to try and resist that change but to try and work out how they can actually change their business models. And also to change the ways they think about and design their network to recognise that change. What we are trying to do with the solar leasing programme is to recognise that customers have a choice to put solar on their roof and if this isn’t done properly, from a New Zealand point of view, it isn’t going to provide the benefits as if it was done in a more managed way. What we are trying to do is to recognise that if we can combine solar with batteries there are network benefits for us, in terms of being able to time shift the solar output to coincide with peak demand, and it also provides buffering on our network to be able to facilitate high penetration of PV on houses, which we predict will happen in the future. From a customer point of view there’s still a relatively high investment cost for solar so our model with us owning and managing the system, takes away that upfront cost of ownership and also the burden of owning the systems themselves. We see it as a win-win situation where we can achieve some network benefits and the customer would benefit from having a solar solution. That’s what we are trying to do and we think this is the first initiative of this sort. We can combine an option for customers, that helps the network (rather than causing issues to us) as well as providing our customers some new options. So, to reply to your question, “what do you think are the industry’s biggest challenges”, I think the biggest challenge is for the industry to recognise that traditional thinking and traditional solutions aren’t going to be appropriate going forward.

[continued ...]
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Re: Head in the sand on solar storage
Reply #13 - Nov 5th, 2013 at 3:19pm
 
[... continued]

Q. What role do you foresee energy storage to play in the near future?

A. The price of storage has been reducing, so at the moment we think it’s on the cusp of being a financially viable alternative to traditional network solutions. With the cost of energy storage falling, it will become more and more viable. Energy storage has three key roles:
1 - It provides an option value, in the sense that it provides an alternative to make a large network investment die by providing an option to incrementally roll out batteries annually to keep up with low growth. Particularly when you look at the future there are a lot of uncertainties into what the demand growth on the networks are going to be. There’s some forecasts that would expect demand growth to be falling into the future so battery storage essentially would be able to buy you time rather than making a big investment today on the assumption that growth with continue.
2 - It technically provides the capability to reduce peak demand and it certainly provides the capability to improve network reliability. The solution we are rolling out provides customers with an uninterruptible power supply into their home. Something the customer is looking for, and certainly a key service for some of the business customers we are talking to.
3 - It provides the facility to firm up the output from intermittent generation such as solar and wind and buffers the network from rapid change such as when clouds pass over.

So we see multiple roles for energy storage. We see it will become a significant change in the whole infrastructure of the energy industry. And some of that storage will be owned by customers. As we see that storage prices reduce, some customers will go ahead and install it themselves. So we see a combination of utility owned and managed storage and customer owned and managed storage which is going to be a key part of the industry in the future.

It’s a game changer and when we think about energy storage we also think about Electric Vehicles which is another element of energy storage. While it has had a slow start we are starting to see in some parts of the world EVs getting some traction. Again, if you look at it in 5 to 10 years, having EVs and the storage element that they add into the network, will add another factor that could be advantageous, if it’s done properly.
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Re: Head in the sand on solar storage
Reply #14 - Nov 5th, 2013 at 3:29pm
 
DONT waste an hour Shocked
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*Sure....they're anti competitive as any subsidised job is.  It wouldn't be there without the tax payer.  Very damned difficult for a brainwashed collectivist to understand that I know....  (swaggy) *
 
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