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Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
Industrial Project with Verdia Pty Ltd
School of Engineering and Information Technology
Emily Salter
Bachelor of Engineering
(Renewable Energy and Electrical Power)
June 2017
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
ii
Declaration
I hereby affirm that this thesis is my own work and that to the best of my knowledge, contains no material
previously published or produced by any party in fulfilment, partial or otherwise, of any other degree or
diploma of another University or institute of higher learning except where due acknowledgement is made
in the text.
Emily C. Salter
3rd June 2017
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
iii
Abstract
Large electricity end users are currently not economically inspired to invest in renewable energy due to
low energy charges and high peak demand charges. To investigate if peak demand reduction could
contribute to economic benefits, an excel model was developed to determine the economic benefit of
reducing end user peak demand with renewable energy. Moving loads to low demand periods and
improving load efficiency is the most successful method to reduce peak demand. It was identified that
load reduction by solar penetration is well suited to Western Australian end users, however solar
generation is vulnerable to losses of up to 80%. Energy storage systems were simulated to provide
contingency in the event of solar generation loss. For the case study investigated, capital investment was
estimated to take between 10 and 11 years to be returned in the form of large scale generation
certificates, consumption savings and demand savings.
iv
Acknowledgements
I wish to acknowledge my supervisors at Murdoch university, Dr Martina Calais; Senior Lecturer
Engineering, for her continual inspiration and guidance and Dr Gareth Lee, Deputy Head for Teaching and
Research of the School of Engineering and Information Technology, for providing excellent advice and
support.
Srini Laxman, the then Technical Director at Verdia has provided essential academic, professional and
moral support. The general manager at Verdia, Doug Tapper has been exceptionally patient during the
past year allowing my completion of university and her thesis as an industrial project
Dr John E. Stanton; Adjunct Professor at the University of Western Australia, godfather and best friend
has been tremendously supportive and helpful in the completion of this thesis. My parents Margot and
Richard Salter, have always been caring and hardworking role models, and Carl Kobelke, loving and
supportive boyfriend.
Finally, I wish to thank my Grandmother, Joan Hammond, who inspired me to finish my Bachelor of
Engineering.
v
Contents
Definitions ................................................................................................................................................... vi
Abbreviations ............................................................................................................................................. vii
List of Symbols ........................................................................................................................................... viii
Figures ......................................................................................................................................................... ix
Tables .......................................................................................................................................................... ix
1 Introduction ....................................................................................................................................... 10
1.1 Verdia ........................................................................................................................................ 11
2 Background ........................................................................................................................................ 12
2.1 Market Operator ....................................................................................................................... 12
2.2 Network Generators ................................................................................................................. 13
2.3 The Network Operator .............................................................................................................. 13
2.4 Energy Retailers ........................................................................................................................ 13
2.5 Peak Demand ............................................................................................................................ 14
3 Available Research and Resources .................................................................................................... 16
4 Scope ................................................................................................................................................. 19
5 Approach to modelling peak demand reduction ............................................................................... 21
5.1 Market Operator Demand Charge Pricing Mechanisms ........................................................... 21
5.2 Network Operator Demand Charges ........................................................................................ 21
5.3 Peak Demand ............................................................................................................................ 23
5.4 Cost of Supply ........................................................................................................................... 23
5.5 Load Rescheduling .................................................................................................................... 25
5.6 Lighting ...................................................................................................................................... 28
5.7 Solar .......................................................................................................................................... 29
5.8 Energy Storage .......................................................................................................................... 33
5.9 Power Factor Correction ........................................................................................................... 34
5.10 New Cost of Supply ................................................................................................................... 35
5.11 Estimating project costs ............................................................................................................ 36
6 Development ..................................................................................................................................... 37
6.1 Model Navigation ...................................................................................................................... 38
6.2 Model Operation....................................................................................................................... 38
7 Model Validation ............................................................................................................................... 41
7.1 Simulated and Real Data Comparison....................................................................................... 41
7.2 Case Study ................................................................................................................................. 45
8 Conclusion ......................................................................................................................................... 53
8.1 Future Work .............................................................................................................................. 54
9 References ......................................................................................................................................... 55
vi
Definitions
Billing Data Electricity accounts, provides National Meter Identifier (NMI), energy
charges, network charges, market charges and consumption.
Cooling Load A Reiterative, air-conditioning or ventilation load
End User Electricity consumer at the end of the electricity supply chain
Energy Charges Charge for electricity per unit of electricity (kWh)
Electricity Retailer Retail bodies who buys capacity from the market to sell on to end
users
Electricity Network South West Interconnected System.
Load Data Interval data measurements of the end user’s load
Market Charges Charge for supply passed through from Australian Energy Market
Operator
Network Charges Charge for supply passed through from Network Operator
Off Peak Hours Defined by network operator times outside 8am to 10pm Monday to
Friday, energy costs are usually lower during these times as demand
is usually less.
Peak Hours Defined by network operator as 8am to 10pm Monday to Friday,
energy costs are usually higher during these times as demand is
usually greater.
Western Power State Government (currently) owned statutory corporation
responsible for building and maintaining the South West
Interconnected System (SWIS).
Supply Electricity supply
Troffer Linear fluorescent Light fixture,
vii
Abbreviations
AEMO Australian Energy Market Operator
NEM National Electricity Market
NMI National Meter Identifier
WEM Wholesale Electricity Market
SWIS South West Interconnected System
viii
List of Symbols
P Real Power
Q Reactive Power
S Apparent Power
kW kilo-Watt
kVAr kilo-Volt Amperes Reactive
kVA kilo-Volt Amperes
PFtarget Target Power Factor
Qtarget Target Reactive Power
Starget Target Apparent Power
W Watt, 1 Joule per Second
ix
Figures
Figure 1: The South West Interconnected System (Western Power, 2017) ............................................... 10 Figure 2: The Wholesale Electricity Market (AEMO,2016) ......................................................................... 12 Figure 3: Bundled and Unbundled Electricity Tariffs .................................................................................. 14 Figure 4: Commercial Load Profile Example ............................................................................................... 14 Figure 5: Homer Pro's Advanced Grid Rate Properties Input ..................................................................... 18 Figure 6: Rolling Peak Illustration ............................................................................................................... 22 Figure 7: SWIS Load Data vs Temperature ................................................................................................. 23 Figure 8: 12 peak trading intervals ............................................................................................................. 25 Figure 9: IRCR Ratios ................................................................................................................................... 25 Figure 10: Original and Proposed NTDL Profiles ......................................................................................... 26 Figure 11: Net Load Change, NTDL ............................................................................................................. 27 Figure 12: Original and Proposed Rescheduled Loads ............................................................................... 27 Figure 13: Original Lighting and Proposed LED Loads ................................................................................ 28 Figure 14: Original, Rescheduled and LED Reduced Loads ......................................................................... 29 Figure 15: Modelled PV Output .................................................................................................................. 30 Figure 16: Original, Rescheduled, LED and PV Reduced Loads................................................................... 30 Figure 17: AEMO SWIS Load Data vs Murdoch Meteorology Temperature Data ...................................... 32 Figure 18: AEMO SWIS Load Data vs Murdoch Meteorology Solar Radiation Data ................................... 32 Figure 19: National Renewable Energy Laboratory PV Watts Average and Minimum simulated 2000kW
Solar Output ............................................................................................................................................... 33 Figure 20: Target Maximum Demand ......................................................................................................... 34 Figure 21: Power factor correction algorithm ............................................................................................ 35 Figure 22: Demand Reduction implementation and economic benefit ..................................................... 36 Figure 23: Model Colour Coding Key .......................................................................................................... 38 Figure 24: Navigation Panel ........................................................................................................................ 38 Figure 25: Model Overview ........................................................................................................................ 39 Figure 26: Assumed LEDs installed with respect to time............................................................................ 42 Figure 27: Simulated and real LED load reduction ..................................................................................... 43 Figure 28: Average Simulated and Real LED Reduced Load, May .............................................................. 43 Figure 29: Murdoch University’s Annual Load Profile ................................................................................ 45 Figure 30: Murdoch University’s Annual Load Profile ................................................................................ 46 Figure 31: Solar Output .............................................................................................................................. 48 Figure 32: Power Factor Distribution Histogram ........................................................................................ 48 Figure 33: Simulated Power Factor Distribution Histogram ....................................................................... 49 Figure 34: Corrected Power Factor Distribution Histogram ....................................................................... 49 Figure 35: Simulated Annual Load .............................................................................................................. 50 Figure 36: Simulated Annual Load Profile .................................................................................................. 50 Figure 37: Simulated Progressive Demand Reduction ............................................................................... 52
Tables
Table 1: Hypothetical Demand Reduction Project ..................................................................................... 45 Table 2: Corresponding Real Power Measurements, Peak Trading Intervals............................................. 46 Table 3: Capacity Year and Individual Reserve Capacity Requirements ..................................................... 47 Table 4: Peak Trading Season Real Power Measurements ......................................................................... 51 Table 5: Simulated Capacity Year and Individual Reserve Capacity Requirements .................................... 51 Table 6: Maximum Demand Reduction ...................................................................................................... 52 Table 7: Simulated Total Savings ................................................................................................................ 53
10
1 Introduction
Australia’s electricity systems are undergoing major industrial, technological and economic changes
(Finkel et al. 2017). With significant drops in renewable energy costs and increasing technology
improvement, distributed energy generation is very rapidly becoming more viable than conventional
centralised generation sources. Australia has two major electricity systems, the national electricity market
and the wholesale electricity market. The wholesale electricity market supply’s electricity to the South
West of Western Australia. The network responsible for transmitting and distributing this electricity is
referred to as the South West Interconnected System (SWIS). It connects electricity consumers to
electricity generators South West of the line from Kalbarri to Ravensthorpe, including Kalgoorlie, Figure
1.
Figure 1: The South West Interconnected System (Western Power 2017)
One of the Wholesale Electricity Market’s greatest challenges is in meeting peak demand (IMO, 2014).
Peak demand is defined as above average sustained power use. Compounded from millions of electricity
consumers or end users, peak demand usually occurs daily, throughout business hours, and annually
throughout the summer months. Woven throughout complex energy pricing mechanisms, peak demand
normally accounts for half an end user’s electricity expenses. Most end users are charged for their
electricity supply by fixed consumption charges. Large end users are charged according to all components
of electricity supply. Their cost of supply varies according to their peak demand, not just their
consumption. Traditionally these charges have been accepted as a fixed expense that must be paid. Over
the recent years, peak demand management has become a growing area of interest (Benetti et al. 2015).
Demand side management and demand response systems have been utilised to reduce end user grid
burden and to take advantage of energy savings (Benetti et al. 2015). In most cases this has been achieved
either by onsite generators or load shedding (Benetti et al. 2015).
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
11
In the last few decades there has been a shift towards renewable energy and energy efficiency. As the
affordability of renewable energy has improved, many end users have adopted renewable energy to
reduce costs and improve their sustainability. In Australia, solar power has proved to be a particularly
viable approach to reduce the electricity expense of small end uses (Piccinini 2015). High electricity
consumption costs and low investments required are providing fast returns on investment.
For large end users with large capacity charges and low consumption charges, there is little benefit of
simply reducing their consumption. Instead, it is realised there may be significant economic reward to be
gained by reducing consumption in such way that reduces peak demand. It is acknowledged that
renewable energy resources are not reliable enough to reduce peak demand independently. An end user
must be able to dependably reduce their peak demand burden on the electricity systems; this would allow
a reduction to the end user’s allocated power capacity, and hence reduce their expenses.
Reliably reducing an end user’s peak demand can be achieved in various ways. Removing or reducing loads
is the most reliable way to manage peak demand. If that is not suitable for an end user, onsite renewable
generation and energy storage can be used. This report focuses on utilising a combination of
techniques/technologies with the goal of flattening an end user’s peak demand.
A model was developed during an industrial project with Verdia, to determine the potential of flattening
an end user’s peak demand. The model is used to identify demand reduction savings and analyse the
viability of renewable energy for large end users. It utilises a combination of energy efficiency solutions,
renewable energy onsite generation, power correction and energy storage. The possibility of reducing the
peak demand (viably) of an end user depends on various factors, characteristics and variability of their
peak demand and the correlation between their load and solar resource.
1.1 Verdia
Verdia Pty Ltd is a new national energy services company (Verdia 2016). It provides project advisory,
development, management, finance and asset management services. Verdia operates independently
from any suppliers or contractors. This allows Verdia to drive competitive tension between suppliers and
hold installers accountable for their quality of service. Verdia is constantly developing its quality partner
network through due diligence. Verdia’s market niche sits with larger end users requiring end-to-end
project management.
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
12
As the company builds momentum, larger end users have been engaging Verdia to assess the energy
saving implications of renewable energy projects; hence the emergence of a requirement for such an
evaluation model to determine the economic benefit of reducing peak demand with renewable energy.
The model discussed in this paper has been developed to provide insight to the viability of renewable
energy reducing peak demand.
2 Background
Electricity supply systems are very complex. Electricity supply systems comprise of energy generation,
interconnecting transmission and distribution networks and a vast quantity of fluctuating loads. It is
important to ensure energy generation remains in balance with loads and transmission/distribution loss.
The network operator manages this on a daily basis. As more loads are added to an electricity system,
more generation power must become available. This is overseen and coordinated by the market operator
(IMO 2014).
2.1 Market Operator
There is one market operator in Australia, The Australian Energy Market Operator (AEMO). The market
operator manages the operation and development of both the national electricity market and the
wholesale electricity market (AEMO 2016a). It conducts long term forecasting to ensure sufficient
generation capacity for the future. The AEMO must coordinate market generators i.e power stations to
ensure there is enough electricity to supply all market customers (AEMO, 2016). The Network Operator
(currently Western Power for the SWIS) manages the transmission and distribution network to deliver
electricity from Market Generators to Market Customers. Market Customers purchase electricity to sell
in the retail market to end users. These relationships are shown in Figure 2, green representing
coordination and management, grey as energy flow and black as payment.
Figure 2: The Wholesale Electricity Market (AEMO,2016)
AEMO
Market Generator
Network Operator
Energy Retailers
End User
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
13
There are various trading mechanisms: Reserve capacity, Bilateral Contracts, short term energy markets
(STEM) and dispatch/balancing process (AEMO 2016b). The reserve capacity mechanism impacts the cost
of demand. It ensures there is sufficient capacity and demand side management. Energy Retailers contract
capacity credits to the AEMO, who assigns capacity credits to market generators (AEMO 2016b). If
capacity is insufficient, AEMO auctions for more, so long as surplus cost is shared across market
customers. This is done on an annual basis to ensure there is enough capacity available in the market.
2.2 Network Generators
Network generators produce electricity: usually via a power station, wind farm or solar farm. Network
generators charge end users based on per unit consumption via their electricity retailers. Generators
charge a higher rate for electricity during peak hours; 8am to 10pm week days, when electricity is in higher
demand. This simple pricing mechanism aims to encourage off peak consumption – with the goal of
reducing peak demand.
2.3 The Network Operator
In most electricity networks, there is more than one network operator. The SWIS is unique to Australia;
Western Power is the sole network operator (AEMO 2016b). Western Power is responsible for operation,
maintenance and development of the SWIS. They must ensure all customers receive satisfactory
electricity supply (Western Power 2011). End users are charged according to various network tariffs
(Western Power 2016a). This report is focussed on end users serviced under Metered Demand Exit
Service, or Contracted Maximum Demand Exit Service tariffs. End users on these tariffs account for less
than 1% of those connected to the SWIS; however their annual consumption accounts for more than 40%
of total electricity consumed annually (Western Power 2016b).
2.4 Energy Retailers
Energy retailers buy, or bid for capacity, for their customers: the end users (Australian Energy Market
Operator 2015). To simplify energy costs for end users, energy retailers usually bundle all electricity supply
components into a fixed per unit energy price (Australian Energy Market Operator 2015). This allows
most end users to be charged by the amount of energy consumed in kilowatt hours (kWh), Figure 3.
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
14
Figure 3: Bundled and Unbundled Electricity Tariffs
Energy retailers prefer not to bundle energy tariffs for large end users. Large end users are a considerable
burden on electricity markets. Unbundling energy tariffs ensure all components of electricity supply are
passed through to the end user. This is enticing for end users as it usually results in lower costs; however,
end users become exposed to risk of high capacity charges if their demand increases.
2.5 Peak Demand
Peak demand in the South West Interconnected System occurs on both a daily and annual basis. Daily
peak demand is driven by business operation usually running from 8am to 7pm. Between December and
March, in 2014 maximum demand occurred between 5.30pm and 6.00pm (IMO 2014, 18). Power usage
throughout businesses usually typically follows a profile shown in Figure 4.
Figure 4: Commercial Load Profile Example
Annually, peak demand occurs through the summer months: December to March. The increased summer
temperatures cause cooling loads, such as ventilation, air-conditioning or refrigeration to operate more
12:00:00 AM 4:00:00 AM 8:00:00 AM 12:00:00 PM 4:00:00 PM 8:00:00 PM
kW
Power Usage Characteristic of Commercial Operations
Energy Retailer
Bundled Tariff
kWh
Electricity Supply Components
Generators Network
Operators Market
Operator Environmental
Schemes
kWh kVA kW kWh
Energy Retailer
Unbundled Tariff
End User
kW kWh kVA kWh
End User
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
15
frequently and at greater power levels. This period is referred to as the peak trading season. An end user
in Western Australia, is most likely to use their maximum demand during this time. Large end users such
as manufacturers, hospitals, and institutions are major contributors to peak demand. To ensure the
electricity network has sufficient capacity to meet such demand, maximum capacity requirements are
assigned to large end users. Large end users are assigned the maximum capacity they require annually.
Although maximum capacity may only be required a few times a year, large end-users must pay year-
round for the access of this capacity. The high cost of supplying peak demand has driven peak demand
reduction and management. Peak Demand Management is the management of maximum power use.
16
3 Available Research and Resources
Peak Reduction is a rapidly growing subject. Benetti et al. (2015) provide a systematic literature review
and classification of more than two hundred papers relating to electric load management (ELM). The main
subjects of ELM are peak demand response/management/reduction and smart grids. They find that
research or survey papers released every year are almost growing exponentially; the majority of these are
published in the United States of America. Much research is conducted from the perspective of electricity
network optimisation; managing combined peak demand is one of their greatest challenges.
Demand response is usually requested by large consumers, usually in the form of onsite generation to
release capacity into the networks. Demand response motivation is driven by providing the end user credit
for freeing up capacity. In most contexts, this is far more viable than pursuing strategies of network
augmentation. In contrast, demand reduction/management motivation is achieved by increasing end
user’s cost of demand. The meaning of demand reduction and management tend to cross over in many
papers. Usually reduction/management is achieved by energy efficiency or renewables.
Some research looks into AEMO pricing mechanisms for encouraging end users to reduce their peak
demand (Nelson and Orton 2016). Increasing cost of demand, or introducing penalty rates, inspire end
users to seek load reduction by demand response, energy efficiency, renewable energy and/or load
shifting.
Reducing residential peak demand is also an area of great interest; household are responsible for most
after hour demand increase. Sadineni & Boehm (2011) look at peak demand reduction/management of
residential dwellings at the substation level (Sadineni and Boehm 2011). Their simulations achieved a 65%
reduction in peak demand by load control and PV systems in a residential village in Las Vegas. They model
the peak reduction using Energy-10 software for residential dwellings and small buildings. Sadineni &
Boehm found load control (air-conditioning thermostats) was particularly effective in reducing peak
demand. Their report was primarily focussed on peak reduction on an average daily basis; there were
limited comments on peak reduction annually.
Modelling Peak Demand
Many models have been developed for estimating peak demand at the utility level for the purpose of
future infrastructure planning. Suganthi and Samuel (2012) review the growing number of models to
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
17
predict electricity demand. The move to complicated algorithms has allowed estimation accuracy to
improve (Mirlatifi, Egelioglu, and Atikol 2015), and (Dirks et al. 2015). These algorithms incorporate local
weather and population fluctuation predictions to estimate overall peak demand on a network.
Hong, Chang, and Lin (2013) examined how weather has impacted peak demand over the last 30 years,
finding demand, over consumption, to be more greatly influenced, particularly from heating, ventilation
and air-conditioning (HVAC).
Sehar, Pipattanasomporn, and Rahman (2016) present an energy management model to study peak
demand savings from photovoltaics (PV) and storage in demand responsive (DR) buildings. They look at
an established DR building and how its DR ability coupled with PV and ice storage can reduce and/or shift
its load out of a peak demand period. Due to time of peak demand and PV generation, they found the
combination of DR, PV and ice storage was required to maximise peak demand reduction; however ice
storage drastically increased energy consumption.
The National Renewable Energy Laboratory and the International Journal of Smart Grid and Clean Energy
have investigated demand charge mitigation with renewable energy. The consensus is that project
viability is highly dependent on demand charge structure and the shape of the load profile of end users
(Huat Chua, 2013) and (Neubauer, 2013). Additionally, in general, the less battery storage incorporated,
the better payback periods are. This is because battery storage has been traditionally very expensive, and
must be charged by either excess solar or the network in off peak times.
Current Software
Homer was one of the software packages identified to have the ability to simulate demand charge
reduction. Homer’s Advanced Grid Module allows network characteristics, including demand charges, to
be modelled. Homer Pro software can simulate a network with great detail. Energy charges can be defined
as simple rates, real time rates or scheduled rates. The demand charges, or rates can only be specified in
terms of $/kW/month, shown in Figure 5.
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
18
Figure 5: Homer Pro's Advanced Grid Rate Properties Input
The South West Interconnected System’s network and market demand charges cannot be entered
simply into Homer’s Rate Charges input. The fixed and variable maximum or contracted maximum
demand (CMD) network charges are constrained by thresholds; there is not a linear relationship. Many
other software suites deployed this method for calculating demand charge reduction, however in the
case of the WEM, market demand charges are dependent on the median measured peak trading
interval and temperature ratios. Therefore a more complex pricing mechanism is required.
19
4 Scope
To simulate the complexity of demand charge reduction in the wholesale electricity market, a model has
been developed to investigate the economics of demand reduction using renewable energy technologies.
To improve the reliability of demand reduction, the model concludes that a holistic approach should be
used, including a combination of load rescheduling, efficient lighting, solar generation and energy storage.
The model calculates an end user’s current cost of supply from their original load profile. The model
simulates load reduction from LED upgrades, solar penetration, energy storage and power factor
correction. From the simulated load, the model determines the new cost of supply, and thus calculates
the savings in supply including the reduced demand charges. Due to the extensive use of Microsoft Excel
in Verdia, it followed that the model should be built within such a platform.
To calculated the original cost of supply, network and market pricing mechanisms had to be investigated.
These pricing mechanisms were to be put into an Excel spreadsheet, capable of calculating the cost of
supply from the annual load profile of an end user.
The load rescheduling component was also developed. The model simulates the shifting of existing loads
to off peak times, differentiating weekday loads from weekend loads.
The LED Upgrade component determines the load reduction by comparing the power draw from the
current fixtures to the power draw of the proposed fixtures. This was to be done using Verdia’s LED
replacement tables.
The variability of the Perth solar resource was investigated to determine the potential loss of generation
through the peak trading intervals and its consequences on demand.
The reduction in demand must ensure that the assigned capacity requirements of end users can be
reduced confidently. For weather events that cause significant drop in renewable generation, there must
be contingency to ensure load can be serviced without drawing more capacity. It is envisaged that the
energy storage should supplement the load under times of generation loss by cloud events. It is suggested
that a cloud camera could be coupled with a battery management system to ensure Energy Storage
Systems, ESS, could provide such contingency; these have been increasing in efficiency and reducing in
price over the past few years. The viability of utilising ESS to reduce demand is investigated with the use
of this model.
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
20
Once the model was completed, it was tested against real recorded data to determine whether the
simulations were representative of a real load. Verdia looks for business cases where the project break
even time would be reached prior to warranty expiry. The breakeven time is the number of years of
project savings required to equal project investment, often referred to as the payback period.
21
5 Approach to modelling peak demand reduction
To model the economic implications of peak demand reduction by a renewable energy project, we need
to determine the difference between the cost of electricity supply before and after the project is. The
current cost of supply comprises the factors of energy generation, network usage, environmental schemes
and market charges. There are 16 network operators in Australia, each with their own pricing structures.
To simplify the model, it has been tailored to the South West Interconnected System within the tariffs of
Western Power. It is intended that, in the future, the model will be adapted to be utilised for end users
on other networks. This is likely to be challenging due to the vast number of network operators and energy
retailers.
5.1 Market Operator Demand Charge Pricing Mechanisms
The market operator must ensure there is sufficient capacity for all end users throughout the year. To
do this, the market operator assigns end users an Individual Reserve Capacity Requirement (IRCR). This
is established by taking the median measurement during the peak trading season. Twelve
measurements of real power requirements, in kilowatt hours (kWh) are taken at random during 2pm
and 6pm throughout February and March. The median value measured determines the IRCR for the next
capacity year, commencing the following October.
5.2 Network Operator Demand Charges
An end user is also charged for peak demand by the network operator. The network operator takes energy
measurements every 30 minutes to identify an end user’s electricity consumption and capacity
requirements. The network operator will then assign a pricing structure, or tariff, depending on the end
user’s capacity requirements.
Western Power is the network operator of the South West Interconnected System. Western Power
provides the following demand tariffs (Western Power 2016a): -
• High Voltage Metered Demand Exit Service (RT5)
• Low Voltage Metered Demand Exit Service (RT6)
• High Voltage Contract Maximum Demand Exit Service (RT7)
• Low Voltage Contract Maximum Demand Exit Service (RT8)
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
22
These tariffs are assigned to large end users, and are intended to provide an incentive to reduce their
respective peak demand. Western Power measures peak demand in terms of complex power in kilo volt-
amperes (kVA).
5.2.1.1 High and Low Voltage Metered Demand Exit Service
Western Power refers to the high and low voltage metered demand tariffs as Reference Tariff 5 (RT5) and
Reference Tariff 6 (RT6) respectively (Western Power 2016a). End users are supplied under these tariffs if
their seasonal usage is highly variable. The maximum demand is measured using a rolling 12 months peak
function. If the maximum demand is not exceeded within a 12-month period, it is reset to the next highest
peak measured (Western Power 2016a). If, however, the peak is exceeded within 12 months, it will adjust
to that new peak and the cycle starts again, Figure 6 .
Figure 6: Rolling Peak Illustration
To further encourage a reduction in peak demand, a discount proportional to the off peak to total
consumption ratio also applies to end users within this tariff. Demand length charges also apply to end
users. These charges are proportional the distance an end user is from their substation, to account for
energy losses and transformer adjustment required to deliver voltage within the acceptable range. Fixed
metering charges also apply.
5.2.1.2 High and Low Voltage Contract Maximum Demand Exit Service
The market operator refers to these as RT7 and RT8. These tariffs are applicable to end users with
instantaneous power requirements greater than 1000kVA. A contracted maximum demand (CMD) is
calculated according to the end users total connected load, their load factor and power factor (Western
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
23
Power 2016b)The end user is charged according to their CMD; if the end user can reduce their load factor,
maximum demand/average demand, their CMD will reduce. For any demand greater than the CMD,
excessive network usage charges apply. RT7 and RT8 end users also receive demand length charges and
fixed metering and administration charges (Western Power 2016b).
5.3 Peak Demand
Western Australia’s Mediterranean climate is characterised by warm to hot summers and mild winters.
Most West Australians retreat from the heat to air-conditioned offices, cars and homes. These cooling
loads along with refrigeration, are the primary cause of peak demand. There is a strong relationship
between extremes of temperature and high electrical loads. Figure 7 shows the relationship between
total load on the South West Interconnected System and the temperature during the peak trading
season of 2017.
Figure 7: SWIS Load Data vs Temperature
To examine the load of an end user, measured 30-minute interval load data can be obtained from the
network operator’s online portal (Western Power 2016a).
5.4 Cost of Supply
Interval data is usually provided over several years through 30-minute interval energy measurements.
Interval data is usually received for several years in a z-format csv file. Real energy (kWh) and reactive
energy (kVArh) measurements are provided every half hour; each day is represented by a new row of
data. This data had to be converted to linear form by a z-converter algorithm. To avoid storing excessive
quantities of data, it is assumed that load operation will be consistent year to year. This allows load
analysis to be conducted over a period of one year.
(ºC)
5 (ºC)
10 (ºC)
15 (ºC)
20 (ºC)
25 (ºC)
30 (ºC)
35 (ºC)
40 (ºC)
45 (ºC)
50 (ºC)
MW
500 MW
1,000 MW
1,500 MW
2,000 MW
2,500 MW
3,000 MW
3,500 MW
4,000 MW
4,500 MW
5,000 MW
1 Jan 5 Jan 9 Jan 13 Jan 18 Jan 22 Jan 26 Jan 30 Jan 3 Feb 7 Feb 12 Feb 16 Feb 20 Feb 24 Feb 28 Feb 4 Mar 9 Mar 13 Mar 17 Mar 21 Mar
Tem
per
atu
re
Load
AEMO SWIS Load DATA vs Murdoch MET Temperature DATA
Operational Load (MW) Temperature (ºC)
Half hourly data measurements
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
24
Energy is a measure of power over time. To convert half hourly energy consumption to half hour power
measurements, the kWh readings are multiplied by 2, shown by equation 1. The assumption is made that
power is an average value across the half hour period.
[1]
This process is also applied to real and reactive energy measurements to convert to power. To calculate
apparent power “S”, the Pythagorean is found from the real power “P” and reactive power “Q”, equation
2.
[2]
From real, reactive and apparent power values the current cost of supply can therefore be computed.
Energy charges are calculated by multiplying total peak hour and off-peak hour consumption by
corresponding per unit tariffs. Network charges are calculated corresponding to High and Low Voltage
Metered Demand Exit Service (RT5 and RT6) or High and Low Voltage Contract Maximum Demand Exit
Service (RT7 and RT8). For RT5 and RT6 the model identifies maximum demand, corresponding demand
range and discount factors. Equation 3 shows how off-peak consumption is proportional to the discount,
aiming to discourage peak consumption.
Discount = (Off Peak Consumption
Total Consumption) ∗ Discount_Factor
[3]
For RT7 and RT8 excess network usage is identified by equation 4, demand exceeding contracted
maximum demand (CMD) is charged with excess usage fees. The maximum excess usage value of each
billing period is used to calculate these charges.
Excess Network Usage = max(demand − CMD)
[4]
where ‘time’ is in hours = 0.5
𝐸𝑛𝑒𝑟𝑔𝑦 = 𝑃𝑜𝑤𝑒𝑟 × 𝑡𝑖𝑚𝑒 = 𝑃 × 0.5
𝑃𝑜𝑤𝑒𝑟 =𝐸𝑛𝑒𝑟𝑔𝑦
0.5= 𝐸𝑛𝑒𝑟𝑔𝑦 × 2
𝑆 = √𝑃2 + 𝑄2
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
25
All other demand charges are calculated from the CMD. Lower CMD results in lower demand charges, but
higher excess network usage charges. Higher CMD means higher demand charges yet lower excess
network usage charges. This pricing mechanism favours flatter loads, reducing demand peaks means a
lower CMD can be chosen without excess network usage charges.
Market charges are calculated by finding the Individual Reserve Capacity Requirement (IRCR) from the
median real power value throughout the 12 peak interval trading periods shown in Figure 8, (AEMO
2016b).
Figure 8: 12 peak trading intervals
From the median real power demand, the IRCR is calculated using the corresponding IRCR ratios, Figure 9
(AEMO 2016b). IRCR is calculated by multiplying mean real power demand by Temperature Dependent
Load (TDL) and the Total Ratio.
Figure 9: IRCR Ratios
The 12 peak trading intervals and IRCR ratios are published in compliance with the Wholesale Electricity
Market (WEM) Rules. These pricing mechanisms have been input to the Excel model to ensure the current
cost of demand can be calculated from a years’ worth of end user interval data. To calculate the potential
demand reduction, various modules with in the model would simulate effects of rescheduling loads and
replacing lighting fixtures with more efficient LEDs. Solar penetration and energy storage should be sized
to the rearranged, reduced load.
5.5 Load Rescheduling
Running loads outside of peak demand periods is the most effective measures to flatten peak demand. It
is appreciated most loads are time dependent, and rescheduling loads to other times may result in
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
26
disruption of business productivity and profitability. It is envisaged that part of the assessment process
should be to determine whether any loads can be run at other times, and the power that they require.
Load rescheduling aims to reduce peak demand by changing the operation time of non-time dependent
loads (NTDL) to low demand periods. To model load rescheduling over the existing interval data, the
model calculates a load variation. The model requires an input of time and power rating for NTDLs to
create the original NTDL profile, and the proposed time to reschedule the NTDLs. The model has been set
up to allow load start and finish times to be specified hourly and for weekday inputs to differ from
weekend inputs.
Figure 10 shows the isolated operation time change of a constant NTDL to a period of lower demand.
Figure 10: Original and Proposed NTDL Profiles
The model compares the existing NTDL profile to the proposed NTDL profile to find a net load change,
Figure 11.
kW
100 kW
200 kW
300 kW
400 kW
500 kW
600 kW
12:00 AM 3:00 AM 6:00 AM 9:00 AM 12:00 PM 3:00 PM 6:00 PM 9:00 PM
Original and Proposed Load Profiles
Original NTDL Proposed NTDL
Non-Temperature Dependent Loads
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
27
Figure 11: Net Load Change, NTDL
The model allows both real and reactive power loads to be rescheduled. The corresponding week or
weekend day load reduction for real and reactive power is added to each data stream, to appropriate
week and weekend days. By adding the net load change to the original real power load profile, the
proposed load profile is obtained; shown in Figure 12.
Figure 12: Original and Proposed Rescheduled Loads
Rescheduling load as shown in Figure 12 demonstrates that maximum load is reduced. It is assumed that
loads are modelled at normal steady state operation. Although start up or inrush load (currents) may be
significantly higher than that of normal steady state operation, they only last momentarily, in a half hourly
measurement they are negligible. It is also assumed that the load rescheduling on one week day is
representative of the load rescheduling achievable on all weekdays, the model allows weekend operation
to be rescheduled, or to remain unchanged.
-600 kW
-400 kW
-200 kW
kW
200 kW
400 kW
600 kW
12:00 AM 3:00 AM 6:00 AM 9:00 AM 12:00 PM 3:00 PM 6:00 PM 9:00 PM
Net Load ChangeNon-Temperature Dependent Loads
kW
500 kW
1,000 kW
1,500 kW
2,000 kW
2,500 kW
3,000 kW
3,500 kW
4,000 kW
4,500 kW
5,000 kW
12:00 AM 3:00 AM 6:00 AM 9:00 AM 12:00 PM 3:00 PM 6:00 PM 9:00 PM
Original and Proposed Rescheduled Loads
Original Load Proposed Load
Rescheduled
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
28
5.6 Lighting
Light emitting diodes, LEDs, are significantly more efficient than conventional incandescent, halogen and
fluorescent lights. This can be measured by luminous efficacy, ηL lumens per watt (lm W¯¹). Incandescent
and fluorescent lights have a luminous efficacy of approximately 13 lm W¯¹ and 90 lm W¯¹, whereas
standard LEDs can produce approximately 150 lm W¯¹ (Narukawa et al. 2010). This allows LEDs to
produce the same amount of light using a lot less power. Verdia uses a general rule of thumb that LEDs
should have approximately 50% of the power rating of the fixture they are replacing. This assumption
has been used to help model load reduction by LED luminaire upgrades. Usually a lighting assessment of
an end user’s site would be conducted where fixture types, quantities and power ratings would be
recorded.
Conventional lighting loads usually account for around 30% of total power consumption (Yun, Kim, and
Kim 2012). Using Verdia’s general rule of thumb, 15% of total load can be reduced by replacing all
luminaires with LED fixtures. To model the reduction in load by LED luminaire replacement more closely,
a similar process to load rescheduling is adopted. The user provides existing luminaire type, quantity
and operation time (weekday and weekend). The model identifies luminaire rating from its lighting data
sheet and calculates existing load, Figure 13. The model chooses replacement LED luminaires to satisfy
equivalent lumens from the lighting data sheet and calculates the proposed lighting load, also shown in
Figure 13.
Figure 13: Original Lighting and Proposed LED Loads
kW
50 kW
100 kW
150 kW
200 kW
250 kW
300 kW
350 kW
400 kW
450 kW
12:00 AM 3:00 AM 6:00 AM 9:00 AM 12:00 PM 3:00 PM 6:00 PM 9:00 PM
Original and Proposed LED Loads
Original Lighting Load Proposed LED Load
Lighting Loads
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
29
The model calculates the net load reduction by finding the difference of current and proposed LED loads.
The corresponding week or weekend day load reduction is applied to the proposed rescheduled real
power data stream. Example reduced LED load is shown Figure 14.
Figure 14: Original, Rescheduled and LED Reduced Loads
5.7 Solar
As the majority of Verdia Western Australia’s clients are situated in the Perth metropolitan area, it was
decided that the issue of solar generation was to be represented by Perth’s solar generation data. A years’
worth of solar generation data was obtained from the National Renewable Energy Laboratory’s solar
energy production calculator, PVWatts. Optimal solar generation data was obtained for a 100kW system
facing North and at a tilt of 30 degrees. Depending on the capacity required, the solar capacity can be
scaled as desired.
The performance can also be de-rated according to the orientation (azimuth) and inclination. This is done
by identifying the appropriate loss factor from the solar panel orientation and inclination losses data table
from The Australian Solar Radiation Data Handbook, (Australian and New Zealand Solar Energy Society
(ANZSES) 2006). The model also has the capability to reflect the impact of inverter sizing. If generation
exceeds inverter rating, a simple excel “if” function clips generation to match inverter size, demonstrated
in Figure 15.
kW
500 kW
1,000 kW
1,500 kW
2,000 kW
2,500 kW
3,000 kW
3,500 kW
4,000 kW
4,500 kW
5,000 kW
12:00 AM 3:00 AM 6:00 AM 9:00 AM 12:00 PM 3:00 PM 6:00 PM 9:00 PM
Original, Rescheduled and LED Reduced Loads
Original Load Proposed Rescheduled Load Proposed LED Reduced Load
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
30
Figure 15: Modelled PV Output
The model has inputs for three different arrays to allow sizing of various sizes, azimuths and tilts. The total
generation is combined into a PV generation data stream. The PV generation data stream is subtracted
from the proposed LED reduced load data stream to provide the PV penetrated load, Figure 16.
Figure 16: Original, Rescheduled, LED and PV Reduced Loads
Loss of generation was very important to consider. Although Perth usually has clear skies and ideal solar
generation conditions through the peak demand trading period, Perth has seen its highest daily rainfall
(hence heaviest clouds) in January and February 2017 (Bureau of Meterology 2017). AEMO identifies
maximum loads occurring within the hot season, so the relationship between temperature and load was
investigated.
Figure 17 shows the SWIS’s total load compared with temperature throughout the hot season peak
trading period in 2017. There appears to be a very strong correlation between high temperature and peak
kW
50 kW
100 kW
150 kW
200 kW
250 kW
300 kW
350 kW
12:00:00 AM 4:00:00 AM 8:00:00 AM 12:00:00 PM 4:00:00 PM 8:00:00 PM
Modelled PV Power Output
PVSyst Output
PVSyst Output withInverter Clipping
from PVSyst Data
kW
500 kW
1,000 kW
1,500 kW
2,000 kW
2,500 kW
3,000 kW
3,500 kW
4,000 kW
4,500 kW
5,000 kW
12:00:00 AM3:00:00 AM 6:00:00 AM 9:00:00 AM 12:00:00 PM 3:00:00 PM 6:00:00 PM 9:00:00 PM
Original, Rescheduled, LED and PV Reduced Loads
Original Load Proposed Rescheduled Load Proposed LED Reduced Load Proposed PV Reduced Load
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
31
loads; lower temperatures tend to result in lower loads. This is explained by the dominance of cooling
loads on the SWIS (IMO 2014, 18). 10th February 2017, Perth received one of the heaviest days of rainfall
on record (Bureau of Meteorology, 2017). Figure 17 shows solar radiation was greatly impacted. Solar
radiation dropped approximately 60%. The low solar radiation resulted in lower temperatures, shown in
Figure 17 that resulted in less cooling requirements, hence lower total load.
Observation of recent data (Bureau of Meteorology, 2016 and 2017), leads to the same conclusions
through the hot season peak trading period. Heavy cloud or rain events reduces solar radiation; reduced
solar radiation results in milder temperatures and less cooling loads.
32
Figure 17: AEMO SWIS Load Data vs Murdoch Meteorology Temperature Data
Figure 18: AEMO SWIS Load Data vs Murdoch Meteorology Solar Radiation Data
(ºC)
10 (ºC)
20 (ºC)
30 (ºC)
40 (ºC)
50 (ºC)
MW
1,000 MW
2,000 MW
3,000 MW
4,000 MW
5,000 MW
1 Jan 2017 5 Jan 2017 9 Jan 2017 13 Jan 2017 18 Jan 2017 22 Jan 2017 26 Jan 2017 30 Jan 2017 3 Feb 2017 7 Feb 2017 12 Feb 2017 16 Feb 2017 20 Feb 2017 24 Feb 2017 28 Feb 2017 4 Mar 2017 9 Mar 2017 13 Mar 2017 17 Mar 2017 21 Mar 2017
Tem
per
atu
re
Load
AEMO SWIS Load DATA vs Murdoch MET Temperature DATA
Operational Load (MW) Temperature (ºC)
Half hourly data measurements
W/m²
200 W/m²
400 W/m²
600 W/m²
800 W/m²
1000 W/m²
1200 W/m²
1400 W/m²
1600 W/m²
1800 W/m²
MW
500 MW
1,000 MW
1,500 MW
2,000 MW
2,500 MW
3,000 MW
3,500 MW
4,000 MW
4,500 MW
5,000 MW
1 Jan 2017 5 Jan 2017 9 Jan 2017 13 Jan 2017 18 Jan 2017 22 Jan 2017 26 Jan 2017 30 Jan 2017 3 Feb 2017 7 Feb 2017 12 Feb 2017 16 Feb 2017 20 Feb 2017 24 Feb 2017 28 Feb 2017 4 Mar 2017 9 Mar 2017 13 Mar 2017 17 Mar 2017 21 Mar 2017
Sola
r R
adia
tio
n
Load
AEMO SWIS Load DATA vs Murdoch MET Solar Radiation DATA Operational Load (MW)Half hourly data measurements
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
33
5.8 Energy Storage
The temperature – load – solar radiation correlation does not apply to cloud events. To be able to
quantify the reduction in peak demand by solar penetration, contingency for cloud events must be
available. Minimum hourly solar generation was compared to average hourly solar generation
throughout the peak trading season. Based on examination of National Renewable Energy Laboratory
PV Watts data for Perth, it is estimated that during the peak trading season, solar generation may drop
to as low as 20% of average generation, Figure 19.
Figure 19: National Renewable Energy Laboratory PV Watts Average and Minimum simulated 2000kW Solar Output
Because of this, it is proposed that energy storage should be sized at 80% of average solar output
throughout the peak trading season. The model has been set up to provide excess solar or off-peak grid
charging. There is also input to adjust round trip charging efficiency and depth of battery discharge
values. The energy storage capacity recommended is scaled accordingly.
Energy storage can also be selected to assist in flattening the load. From a target maximum demand,
energy storage required is determined. The area between the power curve and target maximum
demand is the additional energy storage capacity.
kW
200 kW
400 kW
600 kW
800 kW
1000 kW
1200 kW
1400 kW
12:00 AM 3:00 AM 6:00 AM 9:00 AM 12:00 PM 3:00 PM 6:00 PM 9:00 PM 12:00 AM
Solar Output
Minimum (kW) Average (kW)
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
34
Figure 20: Target Maximum Demand
5.9 Power Factor Correction
Power factor is the ratio of real power to complex power. Electricity systems prefer the loads of end
users to have power factor greater than 0.8 (Western Power 2011). The majority of loads draw real
power; however loads containing rotating magnetic fields require inductive power. Reducing the real
component of power requirements with LEDs and PV penetration cause the power factor to reduce
even further. To obtain a satisfactory power factor, capacitor banks can be utilised to inject reactive
power (negative inductive power) to lower the net reactive power.
The model calculates the power factor for every set of measurements in the data stream, the ratio of real
power, P to apparent power, S requirements. If power factor is less than the user’s specified target power
factor PFtarget, the power factor correction required, QPFC is calculated, as in equation 5 and 6.
𝐏
𝐏𝐅𝐭𝐚𝐫𝐠𝐞𝐭
= 𝐒𝐭𝐚𝐫𝐠𝐞𝐭 = √𝐏𝟐 + 𝐐𝟐𝐭𝐚𝐫𝐠𝐞𝐭
𝐐𝐭𝐚𝐫𝐠𝐞𝐭 = √𝐒𝐭𝐚𝐫𝐠𝐞𝐭𝟐 − 𝐏𝟐 = √
𝐏
𝐏𝐅𝐭𝐚𝐫𝐠𝐞𝐭
𝟐
− 𝐏𝟐
[5]
kW
1000 kW
2000 kW
3000 kW
4000 kW
5000 kW
6000 kW
12:00:00 AM 3:00:00 AM 6:00:00 AM 9:00:00 AM 12:00:00 PM 3:00:00 PM 6:00:00 PM 9:00:00 PM 12:00:00 AM
Identification of energy storage required to achieve Target Maximum Demand
Target Maximum Demand Demand after Solar Penetration
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
35
𝐐𝐏𝐅𝐂 = 𝐐𝐭𝐚𝐫𝐠𝐞𝐭 − 𝐐𝐚𝐜𝐭𝐮𝐚𝐥
𝐐𝐏𝐅𝐂 = √𝐏
𝐏𝐅𝐭𝐚𝐫𝐠𝐞𝐭
𝟐
− 𝐏𝟐 − 𝐐𝐚𝐜𝐭𝐮𝐚𝐥
[6]
QPFC is negative, indicating the requirement of capacitive reactive power to lower the inductive load.
QPFC is calculated in units of reactive power, kVAr. The model utilises a simple algorithm, Figure 21 to
determine the power factor correction required to maintain power factor throughout the year.
Figure 21: Power factor correction algorithm
The total reduction of charges is defined as the peak demand reduction savings. The savings as a
proportion of project cost can be used to determine whether a project is viable and should be
implemented.
5.10 New Cost of Supply
From the resulting load, the new cost of supply can then be estimated. There are limitations on the
accuracy of calculating the new cost of supply. Loads are highly variable; they are subject to change by
individuals, operation or weather behaviour (Hong, Chang, and Lin 2013) and (Neubauer, 2013). Using
an end user’s latest interval ensures that results are as accurate as possible; however, the results are
vulnerable to changes in loads.
In reality, the new cost of supply will not be realised immediately. The AEMO determines an end user’s
individual reserve capacity requirements (IRCR) during the peak trading season AEMO (2014), February
and March. The IRCR determines the capacity to be allocated for end users for the following capacity year,
𝑃𝐹𝑡𝑎𝑟𝑔𝑒𝑡
𝑃𝐹 < 𝑃𝐹𝑡𝑎𝑟𝑔𝑒𝑡
𝑸𝑷𝑭𝑪 = 0 𝑸𝑷𝑭𝑪 = √
𝑷
𝑷𝑭𝒕𝒂𝒓𝒈𝒆𝒕
𝟐
− 𝑷𝟐 − 𝑸𝒂𝒄𝒕𝒖𝒂𝒍
𝑴𝒂𝒙(−𝑸𝑷𝑭𝑪)
𝐹𝑎𝑙𝑠𝑒 𝑇𝑟𝑢𝑒
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
36
commencing in October. Because of this a reduction in demand occurring just after the Hot Season Trading
Period may not reduce and end user’s demand allocation, hence cost for up to 20 months,
Figure 22.
Figure 22: Demand Reduction implementation and economic benefit
If a demand reduction project was to be completed just before the peak trading season, demand charge
savings would be realised in October that year.
5.11 Estimating project costs
The cost of such a demand reduction project is comprised of many aspects. The model allows capital
cost of each project to be varied as required. For example; cost per watt solar, cost per kilowatt hour
energy storage or cost per kilo volt-ampere power factor correction. Verdia conducts regular market
assessments to obtain current pricing indexes.
Hot Season
Peak Trading
Capacity
Year Start
Hot Season
Peak Trading
Capacity
Year Start
October
2017
January -
March 2017
October
2018
January -
March 2018
Demand
Reduction
Cost
Reduction
Demand
Reduction
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
37
6 Development
As the model is simulating the load over a year using 17,520 real and reactive energy measurements (2
readings per hour x 24 hours per day x 365 days per year), various limitations had to be made to reduce
the file size of the model.
The model is currently limited to the South West Interconnected System, in order to avoid the need to
store additional network operator pricing structures.
The model was developed initially to contain data photovoltaic (PV) data for varied azimuths and tilts.
Storing large amounts of data caused Excels to increase its calculation time. To speed up the performance
of Excel’s, the Solar Panel Orientation & Inclination Losses data was utilised from The Australian Solar
Radiation Data Handbook. This allows a single stream of annual solar data to be simulated at different
azimuths and tilts. The model is currently limited to data for Perth. The viability of peak demand reduction
is dependent on many variables, though the shape of an end user’s load profile is predominant.
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
38
6.1 Model Navigation
To simplify operation of the model, a colour coding key and navigation panel has been positioned at the
top of every input sheet as shown in Figure 23 and Figure 24. The colour coding provides information
regarding the cell’s role. These colours are consistent with the model flow chart that provides an overview
of model operation as depicted in Figure 25.
• Required input (blue): Worksheets or cells where user is required to input information specific to end
user/project
• Default input (purple): Worksheets or cells where default data inputs are held; it is unlikely that these
would need to be changed more than once a year
• Calculations (white): Worksheets or cells where calculations occur, cells should not be modified
• External Information (yellow): External information required i.e. load data, number of luminaires
• Outputs (green): Worksheets or cells where outputs are provided
Figure 23: Model Colour Coding Key
The navigation panel contains buttons that move the user throughout the model. The buttons are
intended to be intuitive by using universal user interface media control convention symbols commonly
found on media players and remote controls, as in Figure 24. Each button is hyperlinked to corresponding
worksheets, to allow user to move as desired. The Load Assessment worksheet is central to user feedback,
so has been made accessible from any page. It provides an insight to load manipulation and ‘live’ feedback
of peak demand statistics. Navigation buttons are hyperlinked and follow the colour coding convention of
light blue to prompt user input/use.
Figure 24: Navigation Panel
6.2 Model Operation
The model is intended to be utilised after obtaining interval data and conducting a site assessment of the
end user’s premises. Figure 25 shows an outline of the model’s process. Yellow items are representative
of either load data or assessments from site inspections. Blue items signify worksheets within the model
that require user input.
Load Assessment Previous Input Next Input Output Instructions
Required Input Default input, can be
changed Calculations External Information Outputs
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
39
Figure 25: Model Overview
Power Factor Correction
Energy Storage
Solar
Lighting
Load Rescheduling
Standing and Interval Data
Real Energy Input (kWh) Reactive Energy Input
(kVArh)
New Annual Expense
Non Critical Load Rescheduling
Non Critical Loads Load Assessment
LED Retrofitting Current Lighting Lighting Assessment
Replacement Lighting Data
Solar Generation Array Details Viable Space
NREL PV Watts Data
Sizing Energy Specifications Desired Maximum
Demand
Power Factor Sizing Required Power
Factor
Savings
Calculations
Obtain Standing and Interval Data
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
40
Purple items indicate worksheets with default data values that may be adjusted; for example, network
operator price lists or solar radiation data. White items specify where calculations are occurring. The
model uses a year’s worth of interval data for the entirety of the calculations. This ensures that annual
variation is maintained throughout the various stages of reducing the load within the model.
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
41
7 Model Validation
The results of key interest are the modelled new load, and the new cost of supply. To ensure the results
from the model are accurate, it is necessary to compare these results with real data. Ideally, one year’s
worth of 30-minute load data before implementation of a peak demand reduction project would be used
in the model to simulate demand reduction. The simulated results could then be compared with the real
load data, post project implementation. Unfortunately, no data was available specific to a large end user
in Western Australia having conducted such a project.
Instead, to test the model, Murdoch University’s LED upgrade project was utilised. From July 2015,
approximately 4000 conventional fluorescent light fixtures were replaced with efficient LED luminaries,
with further installation still to be completed. An approximate installation schedule was used to simulate
number of fixtures installed throughout 2016. Data from January to June in 2016 was compared to
corresponding data for 2017. It was expected the simulated data would contain variations from the real
data. Student and staff numbers, addition of further units, or more efficient loads and weather variation
could cause the power drawn in 2017 to divert from the level predicted. It was noted that there was a
great variation throughout the summer months due to the abnormal summer of 2017. To filter out the
inconsistent weather impact, data was only compared using the months of April and May.
7.1 Simulated and Real Data Comparison
Murdoch University’s load data and LED upgrade schedule was provided by the university’s Energy
Manager. 30-minute interval load data for both the university’s NMIs (National Meter Identifiers) from
July 2014 to June 2017 had been accessed from the network operator. After converting the z-formatted
data to linear form, the kWh and kVArh streams for each NMI were combined to form total energy data
streams. The data from July 2015 to June 2016 was input to the model.
The LED upgrade project schedule installation was staggered across various zones, to ensure minimal
interruption of staff and students. The approximate lighting numbers and project start and completion
dates for each zone were provided. The lights replaced so far are approximately 2300; 1200mm x 300mm
recessed fluorescent double tube troffers and 1700; 600mm x 600mm fluorescent four tube troffers. Both
the double and four tube troffer lights are estimated to draw 80W. It is estimated that another 20W is
lost through the fixtures. It was assumed that installation rates were constant within each zone’s project
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
42
timeline; from this an overall rate of installation was obtained. From the installation rates, total installed
fixtures could be determined with respect to time, Figure 26.
Figure 26: Assumed LEDs installed with respect to time
From the total fixtures installed, the total load reduction could be calculated. The load reduction per
fixture is equivalent to the power draw from the original fixture minus the power drawn from the new
fixture. As the original fixtures drew approximately 100W and the new fixtures will draw 40W, the load
reduction per light fixture is 60W. The model utilised this to find the load reduction with respect to each
day throughout the duration of the installation, and could provide the resultant load anticipated for July
2016 – June 2017 when most of the installation had been completed.
There was significant variation when comparing the simulated 2015 – 2016 data to the real 2016 – 2017
data. The data is shown on the same axis in Figure 27
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Jul 2015 Oct 2015 Jan 2016 Apr 2016 Jul 2016 Oct 2016 Jan 2017 Apr 2017 Jul 2017
Tota
l LED
Fix
ture
s In
stal
led
Total LED fixtures installed
-1,000 kW
kW
1,000 kW
2,000 kW
3,000 kW
4,000 kW
5,000 kW
6,000 kW
7,000 kW
Jun 2016 Aug 2016 Oct 2016 Dec 2016 Feb 2017 Apr 2017 Jun 2017
Full year simulated data
Before LED Installation Simulated LED Installation After LED Installation
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
43
Figure 27.
To ensure week days correlate, the 2017 data needed to be shifted forwards by 2 days to account for the
extra day—2016 being a leap year.
Figure 27: Simulated and real LED load reduction
It is concluded that the significantly cooler spring and summer experienced from October 2016 to April
2017 has caused the deviation from that predicted. Due to the cooler temperatures, cooling loads would
have been lessened, and at lower power levels to those of 2016. To filter most of the error caused by
weather variation, only the data from April and May was assessed. Figure 28 shows the average daily load
profile throughout these months.
Figure 28: Average Simulated and Real LED Reduced Load, May
-1,000 kW
kW
1,000 kW
2,000 kW
3,000 kW
4,000 kW
5,000 kW
6,000 kW
7,000 kW
Jun 2016 Aug 2016 Oct 2016 Dec 2016 Feb 2017 Apr 2017 Jun 2017
Full year simulated data
Before LED Installation Simulated LED Installation After LED Installation
kW
500 kW
1,000 kW
1,500 kW
2,000 kW
2,500 kW
3,000 kW
3,500 kW
12:0
0 A
M
12:3
0 A
M
1:00
AM
1:30
AM
2:00
AM
2:30
AM
3:00
AM
3:30
AM
4:00
AM
4:30
AM
5:00
AM
5:30
AM
6:00
AM
6:30
AM
7:00
AM
7:30
AM
8:00
AM
8:30
AM
9:00
AM
9:30
AM
10:0
0 A
M
10:3
0 A
M
11:0
0 A
M
11:3
0 A
M
12:0
0 P
M
12:3
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M
1:00
PM
1:30
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2:00
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2:30
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3:00
PM
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4:00
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5:00
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6:00
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6:30
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10:0
0 P
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11:3
0 P
M
May
Average Simulated and Real LED Reduced Load, May
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
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The average load profiles for May shows there is a close correlation between the simulated LED load and
the measured data after the LED installation. The average simulated load reduction through May was
240kW, the average measured load reduction was 245.38kW. The average error of 5.38kW represents
2.24% under estimation of load reduction. This could be caused by install rate assumption errors, as
estimated load reduction of 5.38kW is equivalent to about 90 lights. The assumption of the power draw
of the original fixture may also vary slightly depending on the age of the fixture. These errors, however,
are also likely to be caused by the variation of weather, impacting resulting loads and changes in student
and staff numbers or behaviours. Given the vast opportunities for load variation between May 2016 and
May 2017, the error of 2.24% was smaller than expected.
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
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7.2 Case Study
Murdoch University has been used as a case study to test the viability of a demand reduction project.
Building upon the existing LED upgrade project, additional solar, battery storage and power factor
correction has been used in the model. In addition to the 4000 LED fixture upgrades, the specifications in
Table 1 were entered in to the model.
Table 1: Hypothetical Demand Reduction Project
Component Specifications
Solar Array 2000kW (North Facing, 30-degree tilt)
Energy Storage 7000kWh (off-peak charging)
Power Factor Correction 1500kVA
Load profile
Murdoch University’s (complex power) load profile, Figure 29, shows high summer load (January – March)
and is relatively constant for the remainder of the year. This characteristic is typical for SWIS end users
(AEMO 2016b). Excess network usage charges apply at the times that load exceeds CMD, shown by the
dashed line. This only occurred a few times during March during the period assessed.
Figure 29: Murdoch University’s Annual Load Profile
The annual apparent load profile is examined daily in Figure 30, the dark blue data points show peak hour
load and light blue show off peak hour load. Load frequency can be gauged by the intensity of data points.
Outliers appear very pale while high frequency load values are more intense. Peak hour includes weekdays
from 8 am to 10pm, off-peak hour is all other times. Usually peak hour/weekdays loads are when peak
demand occurs. Average weekday and weekend loads are highlighted by white. Although weekend load
kW
1,000 kW
2,000 kW
3,000 kW
4,000 kW
5,000 kW
6,000 kW
7,000 kW
Jun 2016 Aug 2016 Oct 2016 Dec 2016 Feb 2017 Apr 2017 Jun 2017
Annual Load Profile
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
46
is approximately 2000kVA and average weekday load ranges from 2000kVA to 4000kVA, the maximum
load drawn was almost 6000kVA.
Figure 30: Murdoch University’s Annual Load Profile
Murdoch University’s annual consumption was 22.6 giga-watt-hours (GWh) per annum, 12GWh peak hour
and 10.6GWh off peak hour. During the interval data period, the model reports the maximum demand
(maximum apparent power) occurred during peak hour: 5976kVA at 1pm, 14th March. Maximum off-peak
hour demand was 3415kVA, at 7.30am on 11th February.
Excel’s index function within the model can easily be used to determine the individual reserve capacity
requirement measured across the previous year’s 12 peak trading intervals. These readings measure real
power demand in kilo-watts, kW Table 2.
Table 2: Corresponding Real Power Measurements, Peak Trading Intervals
Peak Trading Interval kW
8/02/2015 16:30 2526
8/02/2015 17:00 2515
8/02/2015 17:30 2447
9/02/2015 16:30 4310
9/02/2015 17:00 4075
9/02/2015 17:30 3880
10/02/2015 16:30 4465
10/02/2015 17:00 4238
10/02/2015 17:30 3660
14/03/2015 16:30 2744
14/03/2015 17:00 2671
14/03/2015 17:30 2530
kW
1000 kW
2000 kW
3000 kW
4000 kW
5000 kW
6000 kW
7000 kW
12:00:00 AM 3:00:00 AM 6:00:00 AM 9:00:00 AM 12:00:00 PM 3:00:00 PM 6:00:00 PM 9:00:00 PM 12:00:00 AM
Peak and Off Peak Hour Load
Off Peak kVA
Peak kVA
Average Weekend Load
Average Weekday Load
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
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The median of these measurements is 3202kW. This median measurement becomes applicable at the
beginning of the capacity year in October. For each month in the capacity year, the median measurement
is multiplied with AEMO’s temperature dependent load (TDL) ratio and total ratio, Table 3. This value is
the individual reserve capacity requirement, IRCR. At the end of the capacity year, the median measured
value resets to the most recent peak trading season, and so the cycle continues.
Table 3: Capacity Year and Individual Reserve Capacity Requirements
Capacity Year Capacity Month TDL_Ratio Total_Ratio IRCR
2015
January 2016 1.5639 0.9932 4974
February 2016 1.5675 0.9914 4976
March 2016 1.5724 0.9888 4978
April 2016 1.5719 0.9891 4978
May 2016 1.5741 0.9881 4980
June 2016 1.5752 0.9875 4981
July 2016 1.5668 0.9915 4974
August 2016 1.5675 0.9908 4973
September 2016 1.5709 0.9893 4976
2016
October 2016 1.2709 0.9969 6047
November 2016 1.2708 0.9968 6046
December 2016 1.2709 0.9967 6046
Demand Reduction project
The hypothetical project is tested for its ability to reduce maximum peak demand.
Component Specifications
Solar Array 2000kW (North Facing, 15-degree tilt)
Energy Storage 7000kWh (sized off-peak charging)
Power Factor Correction 1500kVA
The hypothesised 2000kW solar system is to be installed at Murdoch University in Perth at a latitude of
32º and a tilt of 15º. According to the National Renewable Energy Laboratory’s PV Watts Outputs, the
system would produce 3240MWh/annum. Average daily output is estimated to be 8,900kWh per day. The
output profile shows average generation reaches approximately 1200kW in Figure 31. Looking at the
minimum hourly output, generation drops as low as 20% of average.
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
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Figure 31: Solar Output
To provide dependability for the solar penetration, energy storage is sized to be 80% of the average daily
solar generation, sized to 7,000kWh. A battery management system is assumed to manage off peak grid
charging Murdoch University’s original power factor, ratio of real power to complex power, was very
reliable; it rarely drops below 0.95. The power factor histogram in Figure 32 shows there are no
measurements where power factor is unacceptable (below 0.8).
Figure 32: Power Factor Distribution Histogram
The model simulates the power factor with real power injection from solar penetration and energy
storage (and real power load reduction from LED upgrades). As the real power demand as seen by the
grid has decreased but inductive power demand has not, this results in a significant power factor
reduction. Figure 33 shows a high occurrence of power factor recordings below 0.8, not acceptable.
kW
200 kW
400 kW
600 kW
800 kW
1000 kW
1200 kW
1400 kW
12:00 AM 3:00 AM 6:00 AM 9:00 AM 12:00 PM 3:00 PM 6:00 PM 9:00 PM 12:00 AM
Solar Output
Minimum (kW) Average (kW)
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
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Figure 33: Simulated Power Factor Distribution Histogram
To achieve a power factor of 0.95, the power factor correction algorithm determined a maximum reactive
power of 1500kVAr was required to reduce the inductive load as seen by the grid.
Figure 34: Corrected Power Factor Distribution Histogram
Numerous market research reports indicate battery storage costs have dropped exponentially over the
last few years (US Department of Energy, 2017), (Chung et al, 2016), (Khalilpour et al, 2016) and
(University of Minnesota's Energy Transition Lab, 2017). Depending on the provider and storage
technology, the reports estimate that energy storage costs approximately $300/kWh. If the total project
was to be commissioned within the next year, it is estimated that it would require an investment of
$9.5million.
Component Specifications
LED Upgrade 4000 Lights
Solar Array 2000kW (North Facing, 30-degree tilt)
Energy Storage 5000kWh (sized for half a day reserve and off-peak charging)
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
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Power Factor Correction 1600kVA
The following, Figure 35, shows the simulated resultant load. Peak demand is still apparent throughout
the peak trading season, however maximum peak demand reduced by approximately 1000kVA.
Figure 35: Simulated Annual Load
The simulated annual apparent load profile shown daily in Figure 36, the dark blue and light blue data
points again represent peak and off-peak hour load. Average weekend load is simulated to range between
2000kVA and 2800kVA, weekend load has decreased by approximately 500kVA. Maximum demand
reaches about 4600kVA.
Figure 36: Simulated Annual Load Profile
Murdoch University’s resultant simulated annual consumption is 17.2 giga-watt-hours (GWh) per annum;
8.2GWh peak hour and 9GWh off peak hour. During the interval data period, the model reports the
simulated maximum demand (maximum apparent power) occurred during peak hour: 4896kVA at 8am,
kVA
1000 kVA
2000 kVA
3000 kVA
4000 kVA
5000 kVA
6000 kVA
Jun 2015 Jul 2015 Aug 2015 Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 Mar 2016 Apr 2016 May 2016
Simulated Annual Load
kVA
1000 kVA
2000 kVA
3000 kVA
4000 kVA
5000 kVA
6000 kVA
12:00:00 AM 3:00:00 AM 6:00:00 AM 9:00:00 AM 12:00:00 PM 3:00:00 PM 6:00:00 PM 9:00:00 PM 12:00:00 AM
Peak and Off Peak Hour Load
Final Off Peak kVA
Final Peak kVA
Average WeekendLoadAverage WeekdayLoad
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
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15h March. Maximum off-peak hour demand was 3415kVA, also 15h March at 7.03am. To appreciate the
future IRCR value, it has been assumed that all components of the demand reduction project installation
has been completed by the peak trading season to ensure full impact of demand reduction is measured
during the new peak trading season intervals.
Table 4: Peak Trading Season Real Power Measurements
Peak Trading Interval kW
8/02/2016 16:30 1450.0
8/02/2016 17:00 1608.1
8/02/2016 17:30 1847.9
9/02/2016 16:30 3723.7
9/02/2016 17:00 3734.1
9/02/2016 17:30 3815.7
10/02/2016 16:30 3706.7
10/02/2016 17:00 3724.0
10/02/2016 17:30 3683.1
14/03/2016 16:30 1798.9
14/03/2016 17:00 1919.9
14/03/2016 17:30 2088.6
The median of these measurements in Table 4 is 2886kW. To avoid complication, it is assumed that the
ratios remain the same. Once the capacity year has reset, new IRCRs will change, as shown in Table 5.
Table 5: Simulated Capacity Year and Individual Reserve Capacity Requirements
Capacity Year Capacity Month TDL_Ratio Total_Ratio IRCR
2016
January 2017 1.5639 0.9932 4482
February 2017 1.5675 0.9914 4485
March 2017 1.5724 0.9888 4487
April 2017 1.5719 0.9891 4487
May 2017 1.5741 0.9881 4489
June 2017 1.5752 0.9875 4489
July 2017 1.5668 0.9915 4483
August 2017 1.5675 0.9908 4482
September 2017 1.5709 0.9893 4485
2017
October 2017 1.2709 0.9969 3656
November 2017 1.2708 0.9968 3656
December 2017 1.2709 0.9967 3656
As the IRCRs are always referring to the previous season’s median measured peak, demand reduction will
not be appreciated by the market operator until the start of the new capacity year in October. Regarding
the network operator, Murdoch University is on the contracted maximum demand tariff; the reduced
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
52
peak demand will reduce excess network usage charges, but significant demand charge reduction will not
be realised until the contracted maximum demand is adjusted.
A progressive load reduction graph, Figure 37 derived from the model shows each component’s
contribution to reducing the peak. The graph shows the maximum annual values to illustrate the impact
each component has on the maximum demand experienced within a single year.
Figure 37: Simulated Progressive Demand Reduction
The red shows the original load almost reached a maximum of 6000kVA. The simulated LED upgrade
estimated to reduce this to about 5700kVA. With the load reduced by efficient LED fixtures, solar further
reduces maximum demand to 4800kVA. The energy storage, though, could flatten peak demand on most
days; it has been sized only to provide reliability within the worst-case scenario. In this case, it cannot be
assumed that energy storage as sized will significantly reduce peak demand. Energy storage is charged
during off peak times for supplementing peak load. Power factor correction is simulated to further reduce
demand by 180kVA. According to the model, the combined project reduces the maximum demand by
1,430kVA.
Table 6: Maximum Demand Reduction
Component Demand Reduction (kVA)
LED Upgrade 300
Solar Array 850
Energy Storage 100
Power Factor Correction 180
kW
1,000 kW
2,000 kW
3,000 kW
4,000 kW
5,000 kW
6,000 kW
7,000 kW Demand Reduction
Max of kVA Max of New Load W. LED (kVA)
Max of New Load W. Solar (kVA) Max of New Load with Energy Storage (kVA)
Max of Final Load (kVA)
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
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Total 1430
Resultant savings are calculated from subtracting the initial cost of supply from the simulated cost of
supply. The resultant savings, are calculated to be approximately $900,000. Demand savings are
estimated to make up 24% of the total savings achieved. Considering the project investment, of $9.5
million, the payback period is 10.5 years.
Table 7: Simulated Total Savings
Demand Saving $220,000
Consumption $410,000
LGC Savings $270,000
Total $900,000
8 Conclusion
The model developed during this industrial project has identified significant potential savings for the
reduction of peak demand. Generally, for a large end user, managing peak demand to achieve
dependable demand charge savings provides a more viable project than solely renewable energy
projects that can only deliver consumption savings. A range of factors have been identified that place
limits on the consistency of realising such demand savings. The impact of particular weather events
during the peak trading interval directly influences dominant cooling loads; these, in turn, impact on
market capacity ratios. Demand savings are also at the mercy of load use behaviour and the nature of
business operation. I suggest that savings should be acknowledged, not from the previous year’s
expense, but from forecasted expenditure.
This model is still in the early stage of development. In terms of validating demand savings, the next step
is to incorporate a mechanism that is able to scale loads according to local temperature events. The
further step would be to adjust the model to operate within other network operator tariffs in other
Australian states.
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
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8.1 Future Work
This project has outlined the significance of cooling loads in the South West Interconnected System. It is
apparent that, in warm climates, peak demand is primarily a product of temperature. This feature
underlines the necessity for appropriate insulation and intelligent building design.
With the growing demand for energy storage both for the reliability of renewable energy and the
electric vehicle industry, the economies of scale are driving the reduction in the cost of energy storage.
This will enhance investment in such projects.
Managing peak demand of the load is far simpler, and much more efficient and affordable, than relying
on centralised sources of generation. As more and more distributed generation comes on line,
Australia’s electricity systems will need to adapt. It certainly seems, and the independent review, (Finkel
et al, 2017, 30) predicts that, Australia’s electricity systems will see a rapid uptake of investment into
larger scale renewable energy generators and microgrids.
Economic Analysis of Reducing End-User Peak Demand with Renewable Energy
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