❓ The WA parliamentary question explores the participation, location, limitations, and regulations surrounding private aggregators in the South West Interconnected System (SWIS). The answer outlines existing aggregation initiatives and future plans for integrating distributed energy resources and Virtual Power Plants into the energy market.
AnsweredQoN 6364Legislative Assembly
QuestionView source ↗
I refer to private aggregators, who are able to pull together private network assets in a way that allows them to participate in an emerging market, and ask: (a) What is the extent of participation of aggregators in the South West Interconnected System (SWIS); (b) Can the Minister show where these aggregators are operating; (c) What limitations does government put on the interaction of aggregators
and the grid network, including matters of managing grid stability; and (d) What are the rules imposed by government/utilities in respect to the establishment/operations of aggregators?
and the grid network, including matters of managing grid stability; and (d) What are the rules imposed by government/utilities in respect to the establishment/operations of aggregators?
AnswerView source ↗
Answered
22 September 2020
Responded by
Minister for Energy
Response time
7 days
(a)-(b)
Aggregation refers to the grouping of electricity generation and storage facilities, demand side programs and other distributed energy resources, to act as a Virtual Power Plant within electricity networks under private or public ownership.
Demand side providers already participate in the Wholesale Electricity Market in the South West Interconnected System. While most electricity loads associated with these services are connected to the transmission system, it is expected that increasingly loads within the distribution system will be aggregated to provide this service in the future.
Horizon Power has been successfully operating its 37 regional microgrid systems across the state for many years, effectively acting an aggregator in managing these systems. The Horizon Power microgrid trial in Onslow is demonstrating the benefit of energy management systems in balancing intermittent solar generation from community rooftops and a solar farm, with a gas-fired generator and battery energy storage.
The Horizon Power Broome Smart Sun pilot that commenced in November 2017 has also tested the management of rooftop solar, customer air-conditioning and battery energy storage to achieve mutual benefit for customers, including land developers, and the electricity network.
The RENeW Nexus Project, funded by the Commonwealth Smart Cities program, has undertaken various trials within the City of Fremantle, involving peer-to-peer trading of electricity produced by rooftop solar systems.
A similar project has been undertaken in relation to the sharing of energy produced by rooftop solar systems within medium-density apartment developments in White Gum Valley. A regional trial of peer-to-peer trading involving rooftop solar resources has occurred in Wongan Hills.
The privately owned Dunsborough Community Energy Project, being implemented by Plico Energy, is testing the development of a Virtual Power Plant through aggregation of rooftop solar and battery energy storage systems across Dunsborough and the neighbouring town of Yallingup.
Aggregated distributed energy resources and Virtual Power Plants do not currently participate in the Wholesale Electricity Market, however they are expected to form an essential component in the future energy system, to be facilitated by regulatory and system changes underway as part of the Energy Transformation Strategy.
(c)-(d)
The Distributed Energy Resources Roadmap, released in April 2020, outlines a comprehensive set of actions across technical and regulatory areas to fully incorporate aggregated resources and Virtual Power Plants into the South West Interconnected System. This includes work to define the role of aggregators in the future electricity system, including interactions with the electricity grid, energy market and households.
A Distributed Energy Resources orchestration pilot, identified in the Roadmap, will seek to test how aggregated distributed energy resources can provide network services and participate in energy markets. This work will inform further policy development and the pilot is expected to commence in mid-2021.
Concurrently, Energy Policy WA is undertaking a review of the electricity licensing framework that seeks to identify a preferred regulatory framework that facilitates businesses providing alternative electricity services subject to the provision of adequate customer protections. It is anticipated that innovative arrangements, such as aggregated distributed energy resources and Virtual Power Plant business models, could be regulated under the new regime.
Aggregation refers to the grouping of electricity generation and storage facilities, demand side programs and other distributed energy resources, to act as a Virtual Power Plant within electricity networks under private or public ownership.
Demand side providers already participate in the Wholesale Electricity Market in the South West Interconnected System. While most electricity loads associated with these services are connected to the transmission system, it is expected that increasingly loads within the distribution system will be aggregated to provide this service in the future.
Horizon Power has been successfully operating its 37 regional microgrid systems across the state for many years, effectively acting an aggregator in managing these systems. The Horizon Power microgrid trial in Onslow is demonstrating the benefit of energy management systems in balancing intermittent solar generation from community rooftops and a solar farm, with a gas-fired generator and battery energy storage.
The Horizon Power Broome Smart Sun pilot that commenced in November 2017 has also tested the management of rooftop solar, customer air-conditioning and battery energy storage to achieve mutual benefit for customers, including land developers, and the electricity network.
The RENeW Nexus Project, funded by the Commonwealth Smart Cities program, has undertaken various trials within the City of Fremantle, involving peer-to-peer trading of electricity produced by rooftop solar systems.
A similar project has been undertaken in relation to the sharing of energy produced by rooftop solar systems within medium-density apartment developments in White Gum Valley. A regional trial of peer-to-peer trading involving rooftop solar resources has occurred in Wongan Hills.
The privately owned Dunsborough Community Energy Project, being implemented by Plico Energy, is testing the development of a Virtual Power Plant through aggregation of rooftop solar and battery energy storage systems across Dunsborough and the neighbouring town of Yallingup.
Aggregated distributed energy resources and Virtual Power Plants do not currently participate in the Wholesale Electricity Market, however they are expected to form an essential component in the future energy system, to be facilitated by regulatory and system changes underway as part of the Energy Transformation Strategy.
(c)-(d)
The Distributed Energy Resources Roadmap, released in April 2020, outlines a comprehensive set of actions across technical and regulatory areas to fully incorporate aggregated resources and Virtual Power Plants into the South West Interconnected System. This includes work to define the role of aggregators in the future electricity system, including interactions with the electricity grid, energy market and households.
A Distributed Energy Resources orchestration pilot, identified in the Roadmap, will seek to test how aggregated distributed energy resources can provide network services and participate in energy markets. This work will inform further policy development and the pilot is expected to commence in mid-2021.
Concurrently, Energy Policy WA is undertaking a review of the electricity licensing framework that seeks to identify a preferred regulatory framework that facilitates businesses providing alternative electricity services subject to the provision of adequate customer protections. It is anticipated that innovative arrangements, such as aggregated distributed energy resources and Virtual Power Plant business models, could be regulated under the new regime.
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