What's really driving electricity price increases?

How the National Electricity Market Works

Generator Transmission and Distribution

Retailer ‘your bill’

Electricity Bill

What really makes up an energy bill?

Electricity Bill

Building and maintaining of network

New infrastructure makes your bill higher

$14%

41%

[1]

6%

34%

Networks

Wholesale price of power

Other green

schemes

The retailer's charges Electricity Bill

[1] Forecast data from Australian Government, National Energy Savings Initiative Discussion Paper pg 5, for 2012-2013

5%the

carbon price

[2] [3]

Network expenditure is growing fastest

2010 2015 2030$46 Billion $240 Billion

[2] Ernst and Young (2011) Rationale and drivers for DSP in the electricity market – demand and supply of electricity Prepared for the AEMC Power of Choice Review - giving consumers options in the way they use electricity[3] Australian Energy Markets Commissions, Fact Sheet 2: demand side participation and prices

Most of the time (day)

Peak time(evenings)

Rare peak times(40 hours /year) hot or cold days

How networks are used12

6

39

8

7 5

4

21

10

1112

6

39

8

7 5

4

21

10

11

January

100%

Network spending over five years (2010-2015) = $46 billion

+

=Total

annualdemand

21.4Billion$

24.6Billion$

46Billion$

PeakDemandGrowth

100%

[2] Ernst and Young (2011) Rationale and drivers for DSP in the electricity market – demand and supply of electricity Prepared for the AEMC Power of Choice Review - giving consumers options in the way they use electricity

[4]

[4]

Think Small 2012: The Australian Decentralised Energy Roadmap. Institute for Sustainable Futures, University of Technology Sydney.

The Solution

!

A set of smart system

changes

Willunlock

benefits

That could save billions

50%

[4] Think Small 2012: The Australian Decentralised Energy Roadmap. Institute for Sustainable Futures, University of Technology Sydney.

Where will the savings come from ?

Storage (380MW)

Cogen-trigen (4216MW)

Local renewables (875MW)

Local bioenergy(1032MW)

Peak demand measures (5682MW)

Energy efficiency(10423MW)

2%

4%

5%

19%

25%

46%

22608 MW

Think Small: The Australian Descentalised Energy Roadmap, ISF. The International Energy Agency estimates up to 60% of global emissions reductions must come from efficiency.

Why is it green?

Prevents local impacts of mining and building high-voltage

transmission lines

Could save 35% of Australia’s 2009

electricity sector emissions

More energy supplied by renewables

73MT CO2 per

year

[4]

[4]