Appendix B: Details of project plan A. Project Summary The project aims to develop socio-technical insights into energy-user experience of voltage related distributed energy resource (DER) curtailment. Activities will include operational data analysis and user research in collaboration with Solar Analytics, AGL and SAPN. Building on previous collaborations, the project will deliver early insights and define a ‘deep dive project.
B. Project Objectives
Why is this project important? Australia’s world-leading uptake of DER can offer substantial value to energy-users and industry stakeholders. However social, technical, regulatory and market integration challenges remain. Voltage management in the distribution network is the first, acute issue to emerge under high penetration DER. DNSPs are required to maintain voltage within an allowable range and historically, voltages have been ‘set high’ to manage peak-demand, however voltage range is increasing with DER uptake. Proponents of technical standards amendments have proposed that DER inverters assist DNSP management of high voltage through automated power quality response modes (PQRM) including: • • •
Tripping Volt-Watt Volt-VAR
All three PQRM effectively reduce power output, limiting opportunities for DER participation. Early work has shown that energy users are unevenly impacted, with generation losses of up to 46-95% per-site perday. Importantly, value loss is largely ‘invisible’ to users, and difficult to predict before investing in DER. However, PQRM could potentially support higher DER penetrations, and will likely play an important role. Addressing voltage management through network solutions can involve significant costs, and this cost burden is shared across all energy users, not just those with DER. In an evolving energy landscape, it is important to get the balance ‘right’ between managing voltage through network solutions, PQRM and more sophisticated market structures. Despite the growing fleet of DER, there are limited real-world studies showing the impact of PQRM on energy users. The work is important because it will provide timely evidence and an energy-user voice to high impact Australian policy discussions Project Usage As outlined above, the next five years is likely to be a critical period for DER integration. There are several policy-making and standard setting processes that are anticipated to define DER’s role in the Australian NEM over the coming decades. There is a real risk that the industry may put in place measures that inadvertently dissuade energy-users from investing in DER, or that erode already limited trust in the electricity sector. Given the scope of reforms necessary for full decarbonisation of the electricity sector, it is vital that consumer perception and experience is understood and DER is one of the most tangible ways that consumers are interacting with the sector. The research findings of this fast-track project will be used to inform key stakeholders and regulatory processes to support appropriate DER integration, including as appropriate: •Submissions to relevant industry consultation process such as the AEMC’s annual Electricity Networks Economic Regulatory Frameworks review, AEMC DER Access and Pricing rule change, AS4777.2 review and ESB Post 2025 Market Design Initiatives. •Preparation of public report to inform industry stakeholders and consumers on the state of curtailment, as well as informing industry stakeholders on energy-user's perspectives on curtailment 76 | P a g e
