residential air conditioning & peak electrical demand

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1 Residential Air Conditioning & Peak Electrical Demand Mark Paterson, ENERGEX Limited Demand Management Development & Projects Manager

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Page 1: Residential Air Conditioning & Peak Electrical Demand

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Residential Air Conditioning & Peak Electrical Demand

Mark Paterson, ENERGEX LimitedDemand Management Development & Projects Manager

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“Peak Demand”

“Peak Demand Management”

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“The leaders of the future are going to have three traits...A deep sense for potential new markets…

A great fingertip touch with technology…Understand ways to capitalise on these

everywhere in the world…”

*Jeff Immelt paraphrased from ‘The Articulate Executive in Action’ (2005)

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� “Peak Demand” is surging demand for electricity during extremely brief periods of the year

� It’s a growing global issue that’s not going away

1-2% of year

150-200% demand surge

Annual load duration curve

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� “Peak Demand Management” is achieving more intelligent, sustainable control of electrical networks and demand for electricity

� A critical component in any genuine move to energy sustainability

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ENERGEX Limited

� Community-owned electricity distributor for South East Qld

� $6B+ assets

� 1.3 million customers

� 36,000 km overhead lines

� 13,000 km underground cables

� 249 substations

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Context� Joint letter to DEWHA from:

– Ergon Energy– ENERGEX Limited– Integral Energy– ETSA Utilities– Western Power

� Requesting a significant increase in the focus on A/C unit demand management capability under MEPs framework

� We envision Australia as the global leader in this field and will work together to achieve this.

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Annual peak demand growth in SEQ approx. ~200% energy volume growth

0%5%

10%15%20%25%30%35%40%45%

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Energy growth (%) Demand Growth (%)

� Peak Demand drives network investment

� Largest component of bill increases in recent years (and growing)

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Residential air conditioning is becoming a critical challenge for

electrical networks around the world

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Short, Intense Peaks in Demand

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ALBANY CREEK / ARANA HILLS DEMAND CURVE

• Two consecutive summer days

• Only difference is ambient temperature

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ALBANY CREEK / ARANA HILLS DEMAND CURVE

• Two consecutive summer days

• Only difference is ambient temperature

Short, Intense Peaks in Demand

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Viable Options

� AS4755 series of Australian Standards now published – a world first!

� Extensive trial work conducted nationally:– ETSA Utilities (>1,000 homes)– ENERGEX (>1,500 homes)– Western Power– Ergon Energy

� Many learnings from these trials informed drafting of AS4755 standards

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What about Comfort…?

� This is NOT about turning off air conditioners!

� Sophisticated demand A/C demand management is designed to minimise any perceivable change

� Trials have universally demonstrated negligible impact on residential comfort (typically 85-90% satisfaction!)

“Haven’t noticed a difference, I think it’s a good initiative.”

“Keep up the good work. Would be happy to put the other air conditioner in the trial.”

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� Air conditioning demand management is one of the KEY issues for electrical networks in Australia

� The Australian public will not accept continuous peak demand-driven tariff increases

� Widespread A/C demand management will play a critical part of avoiding or minimising network events

� Mandatory legislative requirement for compliance of all A/C units with AS4755.3.1

� Smarter, more intelligent…

“A little by a lot of people gives a big impact”

The Future for A/C

* ETSA Utilities

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Imperatives for Utilities ü Ownership. Appointment of specific Federal and State

entities to drive demand management implementation and enforcement

ü DM-Ready. Legislated mandatory requirement for compliance of A/C units with AS4755.3.1 (under MEPs framework)

ü Pricing. New tariff structures reflecting the true cost of supply electricity to extremely ‘peaky’ loads

ü Unit Efficiency. Strong support for MEPs work strengthening A/C energy efficiency standards

ü Application Efficiency. Need for an Australian Standard addressing residential A/C design and installation (for adoption under BCA)

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“The leaders of the future are going to have three traits...A deep sense for potential new markets…

A great fingertip touch with technology…Understand ways to capitalise on these

every place in the world…”

*Jeff Immelt paraphrased from ‘The Articulate Executive in Action’ (2005)

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