Seán Mc Goldrick

WA Power & Gas Conference 2017

State Government-owned corporation– governed by independent Board,

reporting to Minister for Energy, as owner’s representative

Build, maintain and operate electricity network throughout majority of south Western AustraliaProvide essential service of more than one million customers with network area of 254,920 km² – Transmission and distribution of

electricity across our vast infrastructure of poles, wires, substations and depots

Who we are

Western Power: What we do

Power Generation Retailer

Western Power

Our Customers

Our customers*

More than 210,000 customers with solar PV

– Installed PV capacity ~640,000 kW

– PV install rate last 5 years 22% p.a. ≈ 25,000

~300 battery installations

4 * Data from December 2016

Our customers

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Believe we should use emerging technologies to deliver improved customer outcomes (85%)

Want us to play a role in the supply of electricity into the future (81%) Source: Western Power - customer insights report, March 2016

A network business responseEmerging technology

Non network solutions make economic sense for edge of grid

Large areas of the network cost more to replace/maintain than the revenue collected through tariffs

Emerging technology economics in WA

Network of the future

Modular Network Future - variable network types– Strongly meshed urban distribution

networks– SPS & microgrid network periphery– Thin pipe connections to areas with

local generation and storage– Microgrids with infill projects– Continued relevance of transmission

networkStand alone power system(SPS)

Microgrid

Mesh network Branch network

Our emerging technology program

Broad ranging trial projects

Deepened our understanding

– available technologies

– network impacts

– customer acceptance and comfort

Improve customer outcomes

WA trial projects

Microgrids

– Kalbarri

–Wave farm (Carnegie)

– Residential development

Stand Alone Power System (SPS)

Battery Energy Storage System (BESS)

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Ravensthorpe SPS Trial540kms south east of Perth

SPS pilot objectives

Customer experience compared to network connection

– extensive community engagement

Cost and benefits compared to maintaining overhead powerlines

Reliability improvements

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Perenjori BESS Trial350kms north of Perth

BESS feasibility study

Site selection

– reliability hotspot

– small load can keep project cost & risk low

1MWh battery to provide reliability services alone

In service May 2017

Fully covered by BESS (based on energy)

Period

Interruptions to Perenjori

town Count %48

months 25 23 92%

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Australia’s largest renewable powered* microgrid

Kalbarri eco-tourism town

– ~600kms/370 miles north of Perth

– single 140km long rural feeder from nearest city (Geraldton)

– *community prefers100% renewable generation

Excess generation island’s the town during a fault

Currently in the commercial/ procurement process

What feasibility are we assessing?Technology

– Does it work?

– What impact on reliability?

– What does it look like?

– How do we operate it?

– How do we maintain it?

– Total lifecycle cost?

Other

– Commerciality and market response

– Regulatory implications

– Stakeholder implications

– Business impact

– Project partner opportunities

Kalbarri approach (battery optimisation)

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Output example Monte Carlo Simulation: local wind + solar scenario plot represent microgrid energy storage size to avoid outages

Feasibility study findings

If local generation is available, battery can be small & cost effective

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Overall early program learnings

Must manage customer expectations through extensive community engagement/consultation

Edge of grid towns are typically located far from network support services

– bench testing of devices before deployment

– training of local electricians to assist with patrol of local microgrid area to identify issues and replace local fuses

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Overall early program learnings Don’t assume existing network equipment is suitable for a microgrid – traditional system integration can be complex

Ability for the market to respond to the requirements can be quite varied

Innovative fault detection systems needed to facilitate inverter connected generation and batteries

Optimal microgrid design requires diversity in energy sources – allowing energy storage components to be smaller and more cost effective

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Meeting the needs of 1 million+ customers

Policy makers must engage industry and the community to ensure the regulatory framework is fit for purpose

– regulation struggling to keep pace with evolving technology

– barriers to efficient service provision for customers

Customers won’t be able to capture the benefits of innovative energy technology

– we want our customers to choose our network, and be part of a sustainable energy future

Improving customer outcomes

Short video featuring Ravensthorpe SPS customers

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Electricity Networks Corporation trading asWestern Power ABN 18 540 492 861

westernpower.com.au

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/westernpowerwa @westernpowerwa /western-power /WesternPowerWA