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DEIP Distributed Energy Integration Program ARENA Insights Forum Philip Cohn

DEIP Distributed Energy Integration Program ARENA Insights Forum Philip Cohn Investment Director, Business Development & Transactions. DEIP: Distributed Energy Integration Program - a collaborative effort. Distributed Energy Resources. A major shift is underway. QLD 50% by 2030.

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DEIP Distributed Energy Integration Program ARENA Insights Forum Philip Cohn

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  1. DEIP Distributed Energy Integration Program ARENA Insights Forum Philip Cohn Investment Director, Business Development & Transactions

  2. DEIP: Distributed Energy Integration Program - a collaborative effort

  3. Distributed Energy Resources

  4. A major shift is underway QLD 50% by 2030 ACT 100% by 2020 SA 50% by 2025 VIC 40% by 2025 Decentralisation Rethink the Grid Decarbonisation Increasing Complexity and Digitalisation

  5. Lots of questions and many possible answers How can the voice of the customer guide us? What new tools are needed to operate and maintain security? How to exchange fair value for DER? Who should pay for enabling infrastructure?

  6. Challenges & opportunities Challenges Opportunities • No shared vision No single future state vision or shared understanding of challenges • Reactive Inefficient outcomes from being reactive, rather than proactive • Siloed Lack of knowledge sharing on current activities and focus on closing the gaps • Risky Current and future technical and reputational risk to energy industry exist • Rigid Market reforms and regulation are struggling to adapt to the pace of technology change and customer need • Lead the World! Australia has the opportunity to lead the integration of distributed globally • Better Together Collaboration enables a proactive, efficient, agile and coordinated transformation • Customer Guided An avenue to deliver what customers want from the distributed market • Focused Research & Demonstrations Target shared outcomes and knowledge gaps • Leverage Knowledge Stimulate better decision making

  7. A forum for information exchange and collaboration between industry stakeholders on DER issues can support: A more efficient identification of knowledge gaps and work priorities More rapid iteration of idea development, testing and learning Improved cost and time efficiency by leveraging each other’s complementary insights, activities and resources More robust consensus-based solutions in the interests of consumers Hypothesis

  8. How did it all come about? Gaps Analysis & Stocktake DER Hosting Round Opens A detailed stocktake of the industry and ARENA DER portfolio to be used for a gaps analysis Co-Design ARENA calls for applications to demonstrate and develop greater knowledge on managing the impact of DER in the grid DEIP workshopped how to collaborate better in the DER sector for better customer outcomes Oct-Nov’18 July’18 June’18 Aug-Sept’18 Launch DEIP May’18 Many initiatives are now already underway April’18 Mar’18 DEIP Prioritisation Reflection on functional gaps the DEIP workshopped future priorities using case studies. Development Developed functional model, establish DEIP framework and secretariat appointed DER Hosting Round Closes A-Lab Accelerate workshop was held with over 70 stakeholders with the aim of developing alternative collaboration models. ARENA received 74 applications and was 6 times oversubscribed, highlighting a keen interest by industry to tackle the DER challenges and opportunities.

  9. Structure & staying engaged Stakeholders (customers, government, industry, international expertise) Steering Group (agrees priorities and processes for engagement ) Secretariat (coordination & knowledge sharing) Two-way knowledge sharing

  10. DEIP framework Leadership Purpose Collaborate to maximise the value of Customers’ Distributed Energy Resources to the Australian energy system for the benefit of all energy users. Demonstrations Research & Investigation Collaboration Knowledge Sharing Distributed Energy and the Grid Exchanging Value in Markets Focus Areas Technical systems that enable the efficient use and operation of distributed energy system Energy markets that efficiently exchange the fair value from customer owned DER Markets Frameworks Customer Interoperability Capturing and sharing customers preferences to inform the future. Enabling multi-party exchange of value in-markets within the physical network constraints. Optimising investment in and operation of network and non-network DER infrastructure. Standardising the physical operation and resilience of the distributed energy systems. Workstreams Activities

  11. Workstreams & initiatives CUSTOMER MARKETS FRAMEWORKS INTEROPERABILITY • Customer Insights • Data Management & Protections • Information Resources • VPP Enablement • Demand Response Integration • Distribution Level Optimisation • DER Value Assessment • Consistent Valuation Approach • Network Capacity Baselining • Grid Connections Management • Enhanced Visibility & Control • Cyber Security

  12. A collaborative effort

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