Modern Australian
Men's Weekly

.

Small communities could be buying, selling and saving money on electric power right now – here’s how

  • Written by Soheil Mohseni, Postdoctoral Research Fellow in Sustainable Energy Systems, Te Herenga Waka — Victoria University of Wellington
Small communities could be buying, selling and saving money on electric power right now – here’s how

Globally, the electricity sector is shifting from large, centralised grids powered by fossil fuels to smaller and smarter renewable local networks.

One area of strong interest is “energy arbitrage”, which allows users to buy and store electricity when it is cheaper and sell or use it when the cost is high.

But Aotearoa New Zealand is slow to take this up – even though it is a crucial part of the transition to a zero-carbon future. Why is this?

Small-grid technologies and infrastructure are still in the experimental phase, being tested for effectiveness and desirability of different set-ups, ownership models and commercial arrangements. And intelligent energy-management systems that can provide a prescient forecast of market dynamics are not used widely.

To better understand these dynamics, we’ve modelled a theoretical “microgrid” in a residential subdivision, Totarabank, in the North Island of Aotearoa.

Satellite image of the case study area.
This satellite image shows the case study area. Google Earth™ mapping service, Author provided

We used the model to forecast the expected commercial returns from investing in microgrids and to unlock potential revenue streams from energy arbitrage.

Smart scheduling of batteries

Energy arbitrage requires battery storage and intelligent control to make the most of a local renewable energy system’s generation.

This can be achieved by forecasting short-term future electricity consumption and linking this to the spot power price on the market. Sophisticated real-time controllers then decide if the local system should store or sell to the market (or store and sell later).

Battery storage systems can vary in size, from community-scale batteries supplying a neighbourhood to batteries within a fleet of electric vehicles (EVs). The fundamental controlling processes required to achieve an optimal outcome are broadly the same, except that community batteries are stationary while EV batteries move around.

Read more: Good news – there's a clean energy gold rush under way. We'll need it to tackle energy price turbulence and coal's exodus

Community batteries can store electricity purchased from the grid during off-peak periods and then discharge it during peak periods. Neighbourhoods with solar power can charge community batteries in the middle of the day when solar-generated electricity is abundant and discharge during the higher-priced evening peak.

EV batteries can be used similarly, using cheaper night rates or periods of surplus wind during the night to charge. The energy stored in EV batteries can then be discharged into local loads or sold back into the grid when the price is highest, creating an additional revenue stream.

Modelling return on investment

In our modelling, we assumed the primary reasons people will invest in clean-energy technologies are sustainability, energy independence and resilience. We believe energy arbitrage could be an enabler of capital-intensive microgrids, as opposed to an investment made on a purely commercial basis.

Specifically, we considered a grid-connected microgrid integrating solar photovoltaic (PV) and wind turbines. The system is also backed by a community battery and has a fleet of ten personal EVs to serve.

A schematic showing the modelled microgrid.
The modelled microgrid includes wind and solar power, a community battery and a fleet of electric vehicles. Author provided

We considered two scenarios: one with grid arbitrage revenues and one without.

Our results suggest revenues procured explicitly from energy arbitrage could reduce the total cost of the system by at least 12%. To put this into perspective, for a typical NZ$10 million town-wide microgrid investment, this means $1.2 million in savings.

Another interesting finding was that the length of time the batteries were able to sustain critical loads during unplanned grid outages was greater by about 16 hours per year, compared to the case without intelligent control. This is a remarkable resilience advantage.

Read more: 'We want to be part of that movement': residents embrace renewable energy but worry how their towns will change

So what does this kind of analysis mean for you? If you are part of a community interested in owning and operating a microgrid, you now have enough evidence to ask your developer to consider energy arbitrage so the community can participate in the electricity market to make a profit.

If you own an EV and are trying to get cheaper night rates, this is a heads-up on future offerings from electricity retailers to get your storage-on-wheels to work with the vehicle-to-grid technology.

On the whole, energy arbitrage is an excellent tool to provide support for renewable energy investment decisions and help firm up revenue forecasts.

Authors: Soheil Mohseni, Postdoctoral Research Fellow in Sustainable Energy Systems, Te Herenga Waka — Victoria University of Wellington

Read more https://theconversation.com/small-communities-could-be-buying-selling-and-saving-money-on-electric-power-right-now-heres-how-190740

Australian Classic Literature Enjoys Resurgence

Welcome back to the good old days of storytelling! As the modern world becomes increasingly more demanding, returning to childhood favourites offers...

Building a Governance Model for Headless Content Management at Scale

Image by pch.vector on Freepik There's never been a better time to implement a headless content management system (CMS) to gain the flexibility and ...

Understanding Trade Insurance: Essential Protection for Businesses

Image by Drazen Zigic on Freepik In the current economic environment, trade insurance is an important element for companies trading both locally an...

Choosing the Right Timber for External Cladding

Timber cladding is one of those finishes that pulls double duty: it makes a building look warm and welcoming, and it quietly shields the frame from ...

Top Services Offered by Diesel Mechanics in Brisbane

Keeping a diesel vehicle running at its best takes more than the occasional oil change. When you invest in regular specialist care, you protect the ...

Top 5 Benefits of Hiring Professional House Removalists

Moving day should feel like the start of a new adventure, not the end of your patience. Yet once the settlement papers are signed and the champagne ...

Navigating the Digital Landscape: Managed IT Solutions and IT Services in Townsville

As technology advances at an unprecedented pace, companies must adapt to embrace the transformation ahead. With an evolving technology landscape, mana...

Types of Catering You Should Consider for Your Next Event

Choosing the right type of catering service can elevate your event from ordinary to unforgettable. Whether it’s an elegant wedding, corporate func...

Understanding the Benefits of Split System Installation for Your Home

Climate control is essential to maintaining comfort in your home, especially during the extreme temperatures that many regions face. Whether you’r...

Best Aluminium Window Sliding Designs for Natural Light and Airflow

Bringing natural light and airflow into a space is one of the most efficient ways to create a healthy and comfortable home. In Sydney and across Aus...

Maximising Operational Efficiency: Electric Winch Hire Australia and Hydraulic Power Pack Hire Solutions

Image by jcomp on Freepik From urban construction sites and remote mining operations to coastal maritime facilities, specialised equipment solutio...

Navigating the System: Your Guide to Support Finding Work with a Disability Around Melbourne

Image by freepik Finding the right job can be a challenge for anyone, but it can feel particularly daunting when you're also navigating life with a ...

Say Goodbye to Draughts and Hello to Savings: Your Guide to Perth Window Replacement

Image by prostooleh on Freepik Are your windows looking worse for wear? Are you paying a hefty power bill due to sneaky draughts and poor insulation...

How to Choose the Right Horse Trailer for Your Riding Needs

Many horse owners travel long distances for riding lessons, competitions, or to move horses between properties. Having a safe and reliable trailer i...

Sydney Turf Installer for Instant Green Lawns and Long-Term Performance

Having a green lawn at home makes everything look better. Whether it’s the front yard, backyard, or a small patch beside the driveway, people in S...

Designing Better Living Spaces: Why New Kitchens in the Blue Mountains Are in High Demand

The Blue Mountains region is seeing a steady rise in home upgrades. According to recent housing data, kitchen renovations remain one of the most req...

The Role of Packaging Manufacturers in Reducing Supply Chain Costs

In today’s fast-paced logistics and distribution landscape, businesses are under constant pressure to optimise operations and reduce expenses. One...

Customising Roller Shutters for Warehouses, Factories, and Logistics Hubs

In today’s fast-paced industrial and commercial environments, security, functionality, and efficiency are paramount. Whether you manage a busy log...