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64

OzEA_F0064

francis
Subject: Kogan Creek Solar Boost Project
Date: 2011-02-20 (at 19:40:26)


As part of keeping track of what IS happening, here are a few basic notes on the Kogan Creek Solar Boost Project:
- Kogan Creek power station is a 750 MW Black Coal plant near Dalby in Queensland, ~200 km west of Brisbane
- the "Solar Boost" is a farm of solar concentrating Compact Linear Fresnel Reflectors that act to heat the feedwater to the plant proper.
- the solar boast adds 44 MW peak capacity and 23 MW "average" (this average is presumably for sunny times as the overall annual electrical output is given as 40 GW hours)
- cost is $100 million
- scheduled to be in operation in 2012
- based on the technology piloted at Liddell Power Station

This sort of arrangement makes sense to me in two particular ways:
1. the extra power is (roughly) in play when it is most needed (hot days)
2. the value of power at these times can be substantially above the average.

To get a feel for the numbers here I suppose the solar plant needs to pay back five million dollars a year, that equates to $125 MWh for the electricity (double this if you think ten million is more appropriate etc)

67

OzEA_F0067

francis
Subject: Next generation CCGT
Date: 2011-06-09 (at 18:33:09)


This next generation CCGT is designed for a renewables heavy grid:

"The FlexEfficiency 50 plant using GE's advanced 9FB Gas Turbine is rated at 510 megawatts with greater than 61% efficiency, significantly reducing the amount of fuel needed to create power. The plant achieves a ramp-rate of more than 50 megawatts per minute, twice the ramp-rate of today's industry benchmarks. The technology allows the plant to turn down to 40% of its load while maintaining emissions guarantees and it starts in less than 30 minutes. It can be integrated with a concentrated solar power field to achieve more than 70% efficiency and it offers a 10% smaller footprint than existing combined cycle power plants with equivalent output."

http://www.ecomagination.com/technologies/flex-efficiency/

68

OzEA_F0068

francis
Subject: Open Discussion on OzEA future focus
Date: 2011-08-09 (at 22:25:53)


OzEA continues in a 'tools-down' mode while we work out how to recognise value from the project sooner rather than later. With some external input, we have identified five areas of particular interest:

1. Transmission system analysis from a renewables perspective
2. Renewables, smart grids and system stability
3. Evolutionary paths to 50% renewables (via 20%, 30% and 40% 'stepping stones')
4. Identifying potential 'market failures'
5. The cost of achieving 50% renewables

Each of these aspects will be discussed here in more detail in coming weeks. I will provide commentary against each of these topics in turn, and your thoughtful contributions to these discussions will be appreciated. Please feel free to use first names etc for your handle.

69

OzEA_F0069

Francis
Subject: more scene setting
Date: 2011-08-16 (at 12:39:07)


Following from [68] above, here I make some brief comments to flesh out points 1-5, after a little more scene setting.

OzEA is sitting on plans to develop work to date (i.e. here) to achieve a spatial and monetised high-level model of the NEM. When implemented, this will provide a basis for quantitative analysis of high penetration renewables, both in terms of supply variability dynamics and electricity cost. Before proceeding to implement the necessary machinery, it is necessary to justify the work in terms of the results it can provide. Here, we are engaged in this process; an open process where interested stakeholders are encouraged to contribute and comment.


1. Transmission system analysis from a renewables perspective
The aim is to explore the economic trade off between transmission and dispatchable supply capacity. That is, for given 50% renewable supply configurations, want to find the combinations of transmission links and gas-turbines that give the required system reliability at least cost.

2. Renewables, smart grids and system stability
We set aside the problem of very short time scale variations, as from clouds passing over PV, and focus on the peak shaving and smoothing capabilities of putative and reasonable smart grid scenarios. To avoid get bogged in the detail of residential and industrial demand management, we use a comparatively simple demand-smoothing heuristic (somewhat like that already used to model Pumped Hydro Storage). The benefit derived from a given level of demand smoothing can be valued from the simulation runs. It is then a separate analysis to compare this benefit against a concrete smart-grid configuration that would be needed to achieve the modelled level of demand shifting.

3. Evolutionary paths to 50% renewables (via 20%, 30% and 40% 'stepping stones')
To start, we take a nominal timeframe for 50% renewable electricity in 2040, with 20%, 30% and 40% stepping stones at around 2020, 2028, and 2035 respectively. Keep in mind that this exercise is complicated with many known unknowns, including in technology development (e.g. geothermal, ocean power). The approach remains to work with wind and solar. Using reasonable constraints and projections, sketch out plausible deployment of renewable supply to the 50% level. The task is then to critically analyse scenarios in relation to the demand-remainder dynamics (i.e. the cost of ensuring that supply and demand remain balanced).

4. Identifying potential 'market failures'
Don't want to overstate this. Following from above, and supposing OzEA has identified important aspects of an attractive path to high-penetration renewables, the question turns to the market incentives that attract or repel the system from taking on these aspects.

5. The cost of achieving 50% renewables
Two levels are apparent here. The first is using cost learning curves (for example, for solar thermal with storage) to inform (3), and to otherwise give a high-level exposition of the tension between timeframes, costs, and the difficulties of looking ahead several decades. In contrast, with an established scenario, pathway, and analysis of market mechanisms, it can be possible to estimate an overall cost. This sort of headline cost figure can be fraught, but can also provide a basis for considered debate and discussion.


On a slow rhythm I will proceed to work through these aspects in some more detail, and to otherwise engage and respond to questions and comments.

70

OzEA_F0070

Ben McMillan
Subject: Transmission etc
Date: 2011-08-27 (at 06:15:20)


Hi Francis,
That looks like a pretty solid bunch of tasks.

I could do a highly-simplified version of my transmission analysis, with only state-to-state links, and no automatic optimisation of links, if that would be useful. That would be more amenable to producing a bunch of graphs to get a feel for what is going on.

I had a bit of a look at 5-minute data from the real wind farms to look at the short term variation, and used some noise to build 5-minute wind farm models.

The idea was to see whether you really need much fast-responding plant: it turns out that the fast variation is pretty small once you average a bunch of farms. What you mostly need is reserves for when the wind is strong, and then drops quickly.

Even if the CCGT gas plants take 2 hours to turn on, that's still quick enough to allow you to meet almost all the demand with CCGTs and wind. You still need ~4GW of fast-acting reserve occasionally though.

Anyway, good luck with the rest of your project.

Cheers,
Ben

71

OzEA_F0071

Francis
Subject: response to #70
Date: 2011-08-30 (at 13:07:16)


Thanks Ben -- it is interesting what you say about rapid transitions from strong wind to little wind; I suppose that such events are reliably forecast, thus allowing the transition to be managed.

4GW of fast acting reserve is also well within the available hydro (7.8 GW installed capacity according to ABARE), and less than double the existing Pumped Hydro Storage capacity.

My thinking, based on what we've done and seen to date, is that 50% renewables is quite possible to integrate into the NEM without needing too much extra redundancy in the fuelled supply. The first task is showing this in black and white, and requires some months dedicated work. Then, the issue becomes the trade-off between cost and timeframe, along with intelligent big picture analysis of the various cost tradeoffs that need to be considered in searching for least cost paths. The aspects that trade off include: transmission, smart grid / demand management, storage (including use of hydro and thermal storage within CSP plant), peaking gas turbines, and perhaps within-distribution-network PV.

More or less whatever happens with OzEA funding, we need to wrap what we have and whatever we can manage on top, into an academic paper. You've certainly earned a place in this. Part of what I am doing here is balancing the need for forward plans with the need for certain follow on work that will cap off what we have.

More thoughts from me in about ten days -- I have a boating adventure to go and do.

72

OzEA_F0072

francis
Subject: Demand Side Issues
Date: 2011-12-30 (at 14:10:32)


Load shifting and demand side management are potentially an important part of electricity system development, especially in the presence of increasing levels of supply from wind and solar. Back in 2009 when we tried to make sense of what was happening in this space, no clear view emerged. I'm back for another round.

The NEM electricity wholesalers obtain a large fraction of their cash flow from the peak demand times (a quarter of revenue from the top 1%). The current market structure may represent a huge disincentive to the prosecution of demand side management. Is this a sensible concern?

The obvious counter would seem to be that the retailers have every incentive to push demand side management so as to avoid paying these high spot prices to the wholesalers. If so, why have we not seen more movement on this front? Maybe it is coming? Maybe it is too hard? Maybe it is not worth the costs?

73

OzEA_F0073

francis
Subject: NT Green Energy Taskforce reports
Date: 2012-01-16 (at 19:32:03)


The NT Green Energy Taskforce reports have finally been made public. Local copies here: Report 1: Roadmap to Renewable and Low Emission Energy in Remote Communities, and Report 2: An evaluation of the relative merits, feasibility, and likely costs of the potentially available renewable energy technologies to be used in the NT, including geothermal, solar, biomass and tidal.

The first report recommends particular action, the second recommends only research and capacity building. Here I provide a few comments on each.

The first report recommends that 10 MW of solar (flat plate PV) be installed in 46 remote communities that currently generate electricity from diesel. The solar power component is not to exceed 30% of peak load, thus enabling straightforward integration. Cost is estimated at $60 M ($5.50 per Watt installed + planning overheads), with displaced diesel to save some $90 M over 20 years in todays money (17% saving on diesel use gives 4.5 M litres displaced annually, priced conservatively at $1 a litre).

This would provide the NT's Power and Water corporation with 7% of the RECs it needs through to 2030. The report also recommends development of options for 100% displacement of diesel in remote communities.

Such a roll out can act to build capacity in the NT for mid-scale solar installations. Also, some of these communities may be suitable and willing to be test sites for demand management and other systems that enable higher solar penetration.

The second report looks more broadly at how the NT Power and Water Corporation (PWC) might meet the MRET by 2020 (i.e. around 300 GWh per annum of eligible renewable generation). The upshot is recommendations for the NT government to hold off on any sort of direct subsidy and instead work around the edges to remove barriers, promote and attract research and capacity, and see-what-happens up to 2015. There's a fair bit in there, and perhaps I'll comment again after further digestion.

74

OzEA_F0074

Peter Lang
Subject: Transmission capacity needed for RE for NEM
Date: 2012-02-18 (at 19:00:22)


Francis,

I just noticed the OzEA round 1 Solar thermal Power Curve" on BNC
http://bravenewclimate.com/2012/02/14/grattan-report-2012-critique/ , so I came here looking for more information. Then I found this thread. Comment #69 and #70 are interesting. It is pleasing to see the list of proposed tasks ahead. Have you made any progress with Task 1? Could you provide any comment on the very crude, very simplistic estimate I made of the interstate transmission line capacity we would need to achieve the 'copper-plate' assumption in the Elliston et al. (2011) paper for their baseline simulation?

Can you make any suggestions about how my estimate could be improved?

References:

Elliston, B., Diesendorf, M. and MacGill, I.(2011a), Simulations of Scenarios with 100% Renewable Electricity in the Australian National Electricity Market
http://www.ies.unsw.edu.au/docs/Solar2011-100percent.pdf

Lang (2012) Renewable electricity for Australia – the cost
http://bravenewclimate.files.wordpress.com/2012/02/lang_renewable_energy_australia_cost.pdf
(see Appendix 2)

This Spreadsheet shows my calculations and assumptions: http://bravenewclimate.files.wordpress.com/2012/02/renewable-electric-nem-the-cost-v0-05.xls

75

OzEA_F0075

Peter Lang
Subject: Simplified transmisison analysis for interstate interconnectors
Date: 2012-02-18 (at 19:06:39)


Ben McMillan @ #70, you said:

"I could do a highly-simplified version of my transmission analysis, with only state-to-state links, and no automatic optimisation of links, if that would be useful. That would be more amenable to producing a bunch of graphs to get a feel for what is going on."

Would you be in a position to do your simplified transmission analysis for the case I've attempted to estimate very crudely (see Appendix 2 here: http://bravenewclimate.files.wordpress.com/2012/02/lang_renewable_energy_australia_cost.pdf
And spreadsheet showing my calculations here:
http://bravenewclimate.files.wordpress.com/2012/02/renewable-electric-nem-the-cost-v0-05.xls

76

OzEA_F0076

Ben McMillan
Subject: Transmission Analysis
Date: 2012-02-21 (at 04:06:57)


Hi Peter,
The easiest thing for me to do would be to send you the 'non-simplified' version of my transmission analysis. This is based on hourly simulation data.

Essentially the outcome is that the transmission network is relatively cheap (compared to the renewable power stations themselves) if you are prepared to be lose a few percent of your renewable energy due to transmission constraints.

The 'tails of the distribution' (large demand peaks / generation shortfalls) can be dealt with
more efficiently by building enough backup than huge transmission capacity.

So I think for my 75% case, I end up at 20e9 $US (2006 dollars) for transmission. I am assuming lower line costs (800 US$ per MW per kilometer) than you (especially at current exchange rates), but a higher number may be reasonable.

But going to 100% is different of course.

Cheers,
Ben

77

OzEA_F0077

francis
Subject: Re: Peter Lang (#74) on EDM-2011
Date: 2012-02-22 (at 11:14:58)


Re: http://bravenewclimate.files.wordpress.com/2012/02/lang_renewable_energy_australia_cost.pdf

Peter, thanks for dropping by. As I emailed you a few days ago (so for the benefit of others) I've had OzEA on life support since July 2011, but hope to have a new academic appointment soon that will allow me some time for picking up key OzEA threads as you identify. So, no, there has not been tangible progress here on the balancing act between transmission and gas turbines in a high-renewables NEM.

Before making other comments, it is hopefully no surprise to anyone that I contend 100% renewable scenarios to be primarily polemic and not especially useful technically, except perhaps as limiting cases. For those who have not read it, I refer back to The First Story - Scoping the Problem, and specifically the point that "looking ahead forty or fifty years is really difficult ..." The interest here at OzEA is the 30%, 40%, 50% levels, as an evolutionary integration into the existing systems.

That said:

The Elliston et al. paper (EDM-2011) is a fairly rough cut, or "hello world", take on high-penetration renewables. Ben Elliston is a PhD student cutting his teeth, and I expect we'll see refinement and evolution. While your critique makes its point well, it is unsurprising that costing their scenario ends up at over $300 per MWh for the electricity. Of course, as you spell out, there are other more specific issues that need to be appreciated.

In terms of transmission analysis, and noting Ben McMillan's comments above, I think the important point is that one does not run individual radial transmission lines at rated capacity for each renewable plant to major load centres. Some sort of daisy-chain or other more networked approach gives better utilisation of the transmission capacity, and (as Ben McMillan worked through) you get a distribution of putative flows with a tail for chopping. A larger number of renewable plant sites, strategically selected and intelligently wired up, will require much less new transmission than your current critique involves.

Peter Lang's critical analysis of the cost implied by the Elliston scenario is a valuable contribution, and I read it very much in that way. The challenge (for those of us exploring renewable energy scenarios) is to appreciate the issues raised, and to incrementally develop and refine renewable scenario-ing into more and more tangible propositions. I'm keen to see if I can get a 'Lang costing' to come in at less that $100 MWh (for 50% renewables) before anyone else does. (-;

A plug: I've recently been getting familiar with the BoM gridded solar data, and am now looking to pull together ~100 putative sites where we might include solar plant in scenarios, or otherwise have some interest in irradiance time series. See here. This will in time lead to an improved OzEA scenario.

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fc - June 2011