ken munson - sunverge - it doesn’t have to be a battle between utilities & solar power...

Disruption & the Energy Industry

VPP’s and their Role in the integration of DERs31 August 2016

Ken Munson, Co-founder & CEO

© Copyright Sunverge Energy Inc., All rights reserved. 2

Sunverge Vision and Strategy

maximise customer

benefits for different

dynamic tariff

scenarios

access utility and

energy market

benefits through

demand management,

demand response,

voltage and frequency

control

optimise solar self-

consumption by

delivering stored

solar when it is

most needed

manage a fleet of

devices to

provide greater

network and

market benefits

© Copyright Sunverge Energy Inc., All rights reserved.

Company background

FOUNDED

2009HEADQUARTERED IN

SAN FRANCISCO

SEED

(2009)

1st DEVICE INSTALLED

(2010)

SERIES B

(2014) SERIES A

(2011) SERIES C

(2016)

QLD OFFICE

ESTABLISHED

(2014)

VIC OFFICE

ESTABLISHED

(2015)

1,000 UNITS5MW VPP

SOUTH AUSTRALIA

(2016 - 2017)

OU

R M

ILE

ST

ON

ES

OU

R IN

VE

ST

OR

S

300 UNITSWORLD LEADING

NETWORK VPP

DEPLOYMENT (2012-

14)

500 UNITS DEPLOYED WORLDWIDE

CLOUD CONNECTED 300 UNITS NY REV

STRATEGIC

VPP PARTNER

(2016)

© Copyright Sunverge Energy Inc., All rights reserved. 4

Fleet Performance

6.0

MWh of distributed storage under management

MWh

3.9MW

MW of distributed storageunder management

MWh of peak load reduction (5pm–8pm)

Average production uptime(last 30 days)

99%

500

435MWh

22,000Hours of backup power delivered

to homeowners since 2013


• Australia has significant renewable potential

• Challenges to date have included:

– Caution or lack of support for PV from networks

– Slow changes to retail business model

– Policy uncertainty and renewable investment confidence

• Despite this, we have >15% solar PV penetration and it is increasing

• Competitive PV installation market

• Strong customer appetite for distributed renewables

Increasing renewables – the Australian context

Question: How can we change the business model and the technology solutions to work better?

A level of complexity is developing that requires a monitoring, control and

analytics infrastructure that traditional systems simply cannot provide


% 45% Battery Storage

SOLAR

30% Demand Response

21% Electric Vehicles

14% Natural Gas

CHALLENGES UTILITIES FACETO SUPPORTING A HIGH PENETRATION OF RENEWABLES

RESOURCES UTILITIES EXPECT TO BEM O S T I M P A C T E D B Y :

49%SYSTEM

RELIABILITY

Planning Load Flows

34% Control33% Forecasting

BARRIER TO ENTRY ARE FALLING

Cheaper for residents and

business to adopt green energy

%Battery cost decline

31%

Source: black & veatch, 2016


Meeting the Challenges

Answer: Controllable solar through Virtual Power Plants - fleet managed, customer sited

storage

• Connected but distributed systems will deliver more benefits than standalone

large scale plants, but without the upstream network assets

• Many rooftops with connected, intelligently managed storage will mitigate the

need for large-scale fossil fuel plants and for augmentation and corrective

network expenditure

• Customers can be part of the solution and benefit from participating in a VPP,

providing the business models support the sharing of benefits across

consumers, communities, networks, the wholesale market, the NEM

• …as Andy Vesey said yesterday – “…because we have the platform to enable value creation through aggregation” and orchestration diverse DER network assets.


South Australia - 5MW Virtual Power Plant

• World’s largest Virtual Power Plant (5 MW) in South Australia with Sunverge VPP Platform

• Provide 1,000 controllable batteries to SA homes and/or small businesses who have solar

• Improve stability of network and support renewable generation

• Produce zero carbon emissions

• Reduce energy bills for customers

• Demonsrate network and wholesale value

• Building the market to expedite the cost and value curve

and demonstrate the business model

• Integrate and manage multiple inverter and battery types


The Path Ahead for Virtual Power Plants

ken munson - sunverge - it doesn’t have to be a battle between utilities & solar power...

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