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26 Mar 2019

Insider 35: Why the Wholesale Demand Response Rule Change is Stuck and How to Unstick it

Since November 2018 the AEMC has been running a rule change process to deal with three proposals for, or relating to, a Wholesale Demand Response Mechanism.

Insider 35: Why the Wholesale Demand Response Rule Change is Stuck and How to Unstick it

Since November 2018 the AEMC has been running a rule change process to deal with three proposals for, or relating to, a Wholesale Demand Response Mechanism.  Such attempts, or related attempts to constraint existing demand response to be more controllable and visible, are one of the great perennials of the NEM.  Even prior to the NEM, we grappled with the same issue during the Victorian reforms from 1993. The most recent attempt to deal with the demand side was in 2016 when Snowy Hydro proposed a rule change that would have required price responsive load to be scheduled.  That went nowhere; according to the AEMC it wasn’t worth doing.

The latest attempt appears to be far more serious but has hit a road block.  According to reports from the March 2019 AEMC workshop on the topic, no-one knows how to measure demand response satisfactorily.  Also, and while hardly recognised as a problem right now, there currently seems to be passive acceptance that any approach needs a middle man to work, so demand responses can be aggregated and scheduled.  Such an approach will throttle demand response, just when the NEM needs as much as it can get.

In this brief article, IES CEO, Hugh Bannister, suggests a way to expose willing retail customers to short term spot price volatility while keeping risk to a manageable level.  He also outlines what needs to be done to allow retail customers to bypass the middle man, while ensuring that the system is not destabilised by errant short term behaviour.

These concepts need to be fleshed out in more detail.  They should then be considered as possible “more preferable” options to achieve the goals of the current rule changes.

IES presented to the AEMC on these topics on 20 March 2019.  The presentation can be downloaded here.

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31 Jan 2019

Insider 34: Can the NEM Survive More Renewables?

There remains a popular perception that a high level of renewables in the National Electricity Market (NEM) necessarily implies unreliability. In this article Hugh Bannister explores this notion by building up a plausible plant development strategy from the ground up; then trying to improve it.

Insider 34: Can the NEM Survive More Renewables?

There remains a popular perception that a high level of renewables in the National Electricity Market (NEM) necessarily implies unreliability.  In this article Hugh Bannister explores this notion by building up a plausible plant development strategy from the ground up; then trying to improve it.  The backbone of such a strategy is gas plant to provide reliability.  Renewable energy can then be used to lower operating costs, mainly fuel.

The article explores the limits to renewable energy penetration and what will be needed to relieve those limits, at least in part.

The article also touches on the issue of energy security.  The NEM is posing new challenges for AEMO to maintain security – the ability of the system to continue operating satisfactorily when disturbed.  While AEMO has a system security work program underway, the need to find robust long term solutions is becoming ever more urgent, as highlighted in the final report of the 25 August 2018 system incident.

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01 Jun 2016

WWF Launches its Power Sector Vision for the Greater Mekong Subregion

World Wide Fund for Nature (WWF), with IES and other WWF partners, released its power sector vision to spur the regional and global debate, as well as set out some concrete actions, leading to an achievable, affordable renewable energy future in the Greater Mekong Subregion.

WWF Launches its Power Sector Vision for the Greater Mekong Subregion

WWF worked with Intelligent Energy Systems and partners across the region to develop the most ambitious and detailed analysis of the Greater Mekong Subregion's power sector vision to date. Based on detailed technical power systems modelling of the Greater Mekong subregion, IES developed a regional plan and specific country-level plans for Cambodia, Laos, Myanmar, Thailand and Vietnam.  The power sector vision sets out sensible, cost-effective solutions to some of the region’s most taxing energy problems. The goal of the work was to spur a regional and global debate, as well as lead the way for concrete actions, leading to an achievable, affordable renewable energy future in the Greater Mekong.

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11 Jan 2016

Myanmar Energy Master Plan Launched in Nay Pyi Taw – 8 January 2016

On 8th January 2016, the Myanmar’s National Energy Management Committee (NEMC) officially launched the Myanmar Energy Master Plan.

Myanmar Energy Master Plan Launched in Nay Pyi Taw – 8 January 2016

IES is pleased to announce that on 8th January 2016, the Myanmar’s National Energy Management Committee (NEMC) officially launched the Myanmar Energy Master Plan at a ceremony at Hilton Hotel in Nay Pyi Taw, following an address by vice president U Nyan Tun.

Work on the Energy Master Plan, the product of work undertaken by IES in association with MMIC, commenced in 2014 under Technical Assistance to the Ministry of Energy under Japan Fund for Poverty Reduction administered by Asian Development Bank.  The integrated plan sets out strategies to ensure a sustainable, affordable and secure supply of energy for Myanmar over the longer-term.  These strategies take account of existing infrastructure, fuel supplies, availability of resources, competency in terms of technology and price, cooperation between the government, public and private sectors, environmental and social factors.

The government, ministries, international non-government organisations, private associations and the ADB collaborated to develop the Master Plan. 

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