4.3.5 Smart network solutions A smarter electricity network has the potential to significantly improve operational efficiency. For The electricity network to have sufficient example, at present, faults in the network often capacity to reliably supply electricity to need to be manually located and rectified. consumers during periods of peak demand. Smarter network technology can automate this process resulting in increased operational Addressing of network constraint was a efficiency and improved customer reliability. major driver of network investment and overall Any expected network constraints can be electricity costs faced by consumers. managed by a range of options including battery Traditionally any areas of constraint have been storage, embedded generation and network addressed by building additional poles and upgrades to drive a lower cost outcome. wires. Ultimately intelligent networks and solutions are However this is not always the most cost expected to cost through addressing the effective solution and other non-network paradigm of simply more and bigger ’build solutions may be more appropriate. For networks’ to managing both supply and demand example, TasNetworks have used an innovative side options to deliver cost effective and reliable system protection system, dynamic ratings of electricity supply. lines, smarter technologies and embedded 4.3.6 The future of energy and generation to delay or avoid such investment. positioning Tasmania for advantage Until recent times, energy was something most Bruny Island as an example of people and many businesses did not have a solution to network constraint strong interest in. Today, after a sustained period of electricity price increases almost Island is serviced by two under-sea cables everyone has a view on energy. Predicting the which were installed in the early 1950s and are future is a challenge but some common themes unable to reliably supply electricity during the are beginning to emerge about how the industry peak Christmas and Easter holiday may look in the future. periods. Replacing the cables would be very expensive and a more cost effective solution has The traditional utility model of electricity supply been successfully used since 2012 where was a large power station located close to its mobile generation units meet the peak holiday fuel source connected to consumers by a load requirements and prevent any over-load on network where energy flowed one way. This the under-sea cables, thereby prolonging the life centralised model is being challenged as of the cables. distributed generation, mainly in the form of solar PV, has placed this business model under pressure. It is likely to be under even more pressure as solar PV and other forms of embedded generation and battery technology continue to fall in price and become more efficient.
4.3.5 Smart network solutions The electricity network to have sufficient capacity to reliably supply electricity to consumers during periods of peak demand. Addressing of network constraint was a major driver of network investment and overall electricity costs faced by consumers. Traditionally any areas of constraint have been addressed by building additional poles and wires. However this is not always the most cost effective solution and other non-network solutions may be more appropriate. For example, TasNetworks have used an innovative system protection system, dynamic ratings of lines, smarter technologies and embedded generation to delay or avoid such investment. Bruny Island as an example of solution to network constraint Island is serviced by two under-sea cables which were installed in the early 1950s and are unable to reliably supply electricity during the peak Christmas and Easter holiday periods. Replacing the cables would be very expensive and a more cost effective solution has been successfully used since 2012 where mobile generation units meet the peak holiday load requirements and prevent any over-load on the under-sea cables, thereby prolonging the life of the cables. A smarter electricity network has the potential to significantly improve operational efficiency. For example, at present, faults in the network often need to be manually located and rectified. Smarter network technology can automate this process resulting in increased operational efficiency and improved customer reliability. Any expected network constraints can be managed by a range of options including battery storage, embedded generation and network upgrades to drive a lower cost outcome. Ultimately intelligent networks and solutions are expected to cost through addressing the paradigm of simply ’build more and bigger networks’ to managing both supply and demand side options to deliver cost effective and reliable electricity supply. 4.3.6 The future of energy and positioning Tasmania for advantage Until recent times, energy was something most people and many businesses did not have a strong interest in. Today, after a sustained period of electricity price increases almost everyone has a view on energy. Predicting the future is a challenge but some common themes are beginning to emerge about how the industry may look in the future. The traditional utility model of electricity supply was a large power station located close to its fuel source connected to consumers by a network where energy flowed one way. This centralised model is being challenged as distributed generation, mainly in the form of solar PV, has placed this business model under pressure. It is likely to be under even more pressure as solar PV and other forms of embedded generation and battery technology continue to fall in price and become more efficient.
Tasmanian_Energy_Strategy_-_draft_for_public_comment_20141219.docx