PowerPoint Presentation
OutlineThe key findingsWhat the SGA Summit didSmart City
AmsterdamSome more detail on the disruptersEcosystem of the Grid
Distributed Generation and Storage Future of Transportation
Renewable Economics Cost to Value Summary
18/11/2015Alex Cruickshank Consulting1The Five Disrupters What
are the key energy grid or market disrupters to be addressed by the
energy industry and customers? This is the question that the Smart
Grid Australia (SGA) Board thought should be addressed. This is
what they found. Alex Cruickshank ConsultingSGA International
Summit 18 November 2015The future shape of the market18/11/2015Alex
Cruickshank Consulting3
From CIGRE opening session August 20143The Key FindingsCustomers
are the focusThere is a need to trial, build and
experimentFlexibility, open access and interoperability are
requiredTransportation will be a key componentStorage is an
enabler
18/11/2015Alex Cruickshank Consulting4Customers are the focus
The edge of the grid is now moving to the centre.Customer control
and choice are the new focus Customers are able to access a wider
range of providers and products. Collaboration between providers to
meet customer needs will be important. Customers still want low
cost, reliable supplyA large proportion of customers want a simple,
cost effective solution. Customers are becoming trading
partners.
18/11/2015Alex Cruickshank Consulting5There is a need to trial,
build and experimentThe exact future state of the industry, the
business models and path to the future are uncertain. The new
approaches will need to start small and then scale up to meet
customer demand. Will require flexibility by all involved.
Collaboration between the customers, cities, industry and rule
makers will be importantto both foster the new business models;
andto provide access for new entrants.
18/11/2015Alex Cruickshank Consulting6Flexibility, open access
and interoperability are requiredThe network remains central to
supply in the near terms but must become a platform for
competition, access and choice. This requires open access to
information; true cost reflective tariffs; and efficient product
pricing. To allow flexible bundling of services and allow customers
to choose the services they require. Standards are still
requiredthey must be minimal; and focused on supporting the
business models.
18/11/2015Alex Cruickshank Consulting7Transportation will be a
key componentThe direction and adoption of electric vehicles will
impact the efficiency of the grid. How the forces of efficiency,
technological advancement and driverless cars combine will
determine the take up.The grid and providers will need to be able
to support wide scale adoption of EVs.Network flexibility and
capacity is an issue.Markets and trading arrangement will need to
change. 18/11/2015Alex Cruickshank Consulting8Storage is an
enablerUnlocks renewable energy allowing it to support the market
and the grid.Allows more efficient products for customers.Assists
the network providers to provide better, more efficient services to
customers. The regulations surrounding storage need to balance
customer needs with the development of the industry. 18/11/2015Alex
Cruickshank Consulting9The SummitThe role of SGA is to foment
discussion on key areas and bring international and national issues
together.Start with an international focus, in this case Smart City
Amsterdam.Five issues, five thought leaders and five rounds of
discussionFollowing the Delphi approach.Issues work-shopped by SGA
members.Thought leaders provided opening thoughts.Summary on the
day and a report.18/11/2015Alex Cruickshank Consulting101011
Smart City Amsterdam - introductionSmart City Amsterdam key
pointsThink global but act locallywork with the local community and
municipality to get local change. start with small projects and
then scale them using living labs.Change is a collaboration between
citizens, businesses and governmentsa bottom up or pull approach.to
identify viable projects that can work without subsidies.The SCA
platform is openopen innovation, open knowledge and open
data.Communications is a key underpinning technologyfibre to the
home provides an open marketplace for innovative services and
economic growth.The best city will be the city with the best
Apps.
18/11/2015Alex Cruickshank Consulting12Ecosystem of the grid The
customer is at the centre of the ecosystemonly 30% understand it.
the balance want reliable service with minimal cost and effort. The
nature of the connection is changingwe have both prosumers and
passive users;the connection is becoming both a load and a supply
with many to many interactions; and the customer will become a
trading partner. There is a paradox of engagement where the
customer wants to be more in control but may not want to put in the
effortset and forget. Customers still want low cost, safe and
reliable power.There is a trade-off between products and services
and low cost, which some customers will explore. 18/11/2015Alex
Cruickshank Consulting13Customer interest18/11/2015Alex Cruickshank
Consulting14
Distributed Generation and StorageSupportive regulation is
required to provide confidence for investors and to ensure the
value is sharedenable customer choice, control and flexibility.
Tariffs are importantcost reflective pricing that reaches the
customer.customers must see the value of the alternatives.
Collaboration will be important to remove roadblocks, align
incentives, develop new business models and address the real
problems. Advanced metering and open data will be essentialto allow
the value and costs of products to be measured. The systems will
need to allow for easy connection to the grid and the
marketplace.Plug and Play using standards and protocols.
18/11/2015Alex Cruickshank Consulting15Participants discussed
the topic under three steps: 1. Develop a common vision for the
future (putting the customer at the centre); 2. Develop and map out
an efficient, rational and orderly transition plan; and 3. Build it
and they will come (Centre of Excellence). 15Future of
TransportationThe future is electricwhen it becomes the normal mode
of transportation is anyones guessnew opportunities will open up as
technology develops Storage and charging facilities are likely to
be key factors for adoptionsome countries already provide
assistance. Convergence of EV and self-drive and shared carsthe
drive for EVs and other forms of transport comes from many
directions. Interaction with the gridwhen will the grid be mobile
ready?we cannot be passive.must address the issue to avoid
problems. Government regulation will be importantmust recognise the
changing nature of transport to a shared/common resource. SGA can
play a lead role to align the industry and use local governments as
a partner.
18/11/2015Alex Cruickshank Consulting16Renewable Economics The
grid as the platform for market and value exchangeThe connection
point becomes an exchange point for the buying and selling of
energy. Recovering sunk costs will be an issueneed flexible pricing
and to maintain relevanceincentives for transformation. The edge of
the grid is now the primary focus and is pushing into the centre
for attention. The issue of customer devices and network devices is
emergingwho has precedence, who can manage. Partnerships will be
importantcombined selling of services
18/11/2015Alex Cruickshank Consulting17Cost to ValueCustomers
assume reliable supply at the right voltage.Will this change to
being a negotiable service?Customers will value choice, control and
flexibilityThey also want to save money.To do the Jobs to be
doneheating/cooling lighting, cooking and the things that are
essential to modern lifethe customers may want choice or full
service.Unbundled services with true costs are the building blocks
that allow pricing on real value. Businesses need to offer the
combinations that meet the customers needsincluding the need to not
be bothered by it all.
18/11/2015Alex Cruickshank Consulting18Refer to the customer
interest slide under Ecosystem of the Grid slide 1318Cost to
value18/11/2015Alex Cruickshank Consulting19
Accenture, Actionable insignts for the New Energy ConsumerRefer
also to Network Transformation Roadmap by CSIRO and their
segmentation19SummaryCustomers are the focusThere is a need to
trial, build and experimentFlexibility, open access and
interoperability are requiredTransportation will be a key
componentStorage is an enabler18/11/2015Alex Cruickshank
Consulting20
