Energy & Sustainability Specialist, CQ Partners
South Australian Produce Markets – Innovative Hybrid Energy Solution
Damian has over 25 years consulting experience within the energy, environmental & information management industries enabling him to develop strong relationships with key industry stakeholders. Working for one of Australia’s leading energy advisory consultancies, his passion is to provide genuine outcomes that enable his clients to achieve their goals in a sustainable manner within a rapidly changing energy market landscape.
Damian has experience in many industry sectors both within Australia and Internationally, including energy, resources, insurance, rail, waste, transport, telecommunications, local, state and federal government. He provides commercial and regulatory energy advisory services to clients ranging from large industrial organisations through to local South Australian small businesses. These services include energy procurement, risk management, regulatory advice, renewable project development, energy efficiency audits, renewable energy feasibility studies and energy markets analysis.
Throughout his career, he has developed a thorough appreciation of the challenges faced by organisations from an economic, regulatory and sustainability perspective.
The South Australian Produce Market (SAPM) is South Australia’s primary fresh produce wholesale market. Over 250,000 tonnes of fresh produce is traded between their 45 wholesalers, 60 growers and hundreds of retail operators each year, worth an estimated wholesale value of $550 million. SAPM represents a significant contributor to the South Australian economy driving its burgeoning food industry.
This presentation provides a case study of how end consumers are addressing the challenges of significant rises in energy costs, particularly the SAPM which relies on a low cost, secure electricity supply to provide constant refrigeration and lighting to its embedded network of over 130 customers. The presentation will cover the journey the South Australian Produce Markets took in addressing rising energy costs and security challenges through transitioning from standard retail contracts to wholesale purchase of electricity via the spot market through to implementation of an innovative hybrid energy solution comprising a 2.5MW solar PV system, 4MWh battery and 2.5MW diesel backup generator.
The hybrid energy solution delivers:
• A significant reduction in electricity grid imports;
• Security of supply;
• Reduction in demand on the grid during peak demand periods where the battery acts to supply SAPM’s load during high priced/high demand market events;
• A significant reduction in energy costs to grower and wholesalers through reduced grid imports and provision of a solution that responds to market signals to mitigate spot price risk.
The presentation will outline:
• The architecture of the solution covering the various components, including switching and SCADA controls;
• How the hybrid solution works to reduce SAPM’s costs whilst providing a secure electricity supply;
• The various value streams provided by the battery:
o Physical hedge against high spot prices;
o Spot arbitrage (charge during low spot prices, discharge during high spot prices);
o Reduction in peak demand (reduction in network demand charges);
o Potential to provide market services such as FCAS and system inertia.
• Engagement of specialists to cover engineering, design, commercial, regulatory and project management;
• Identification of project risks and mitigation approaches;
• Lessons learnt from the project and recommendations;
• The process undertook to achieve this solution:
o Development of energy strategy and modelling of potential outcomes;
o Regulatory approvals required including timeline and dependencies;
o Considerations for connection agreements with network service providers;
o Recommended approaches to reducing project delays including streamlining of critical project milestones.
• Options for funding and financing models;
• Other potential applications of a hybrid energy solution.
This presentation will provide a valuable case study to other end consumers facing the same challenges and will empower them to start the journey to addressing increasing energy costs and supply security challenges through the adoption of an active energy strategy that includes the use of energy storage. Attendees will be informed of the potential revenue streams available from energy storage and how best to adopt them for their business.