AND EFFICIENT AIR CONDITIONER EQUIPMENT THE OPPORTUNITY OF LOCAL NETWORK CREDITS FOR HOUSEHOLDS WITH PV SYSTEMS AND EFFICIENT AIR CONDITIONER EQUIPMENT Sebastian Oliva H. Solar Energy Research Centre (SERC-Chile) The Energy Centre - School of Electrical Engineering University of Chile, Santiago, Chile. 2017 IAEE Conference. Singapore June 18 - 21

DISTRIBUTED PV and EE – partners? Competitors? Partners against climate change and also other benefits.. Compete in LCOE, BUT ALSO to capture the customer bill savings as value of PV self-consumption is much higher than value of PV exports Competing for bill savings not OK as PV and EE create divergent benefits Network value is particularly important in Australia

Solutions? - The local network credits Possible solutions?: more cost-reflective network pricing, DM mechanisms, storage, more cost-reflective feed-in tariffs We explore the last one: “Local Network Credits” (LNC) Issue here: PV exports pay full network charges but that’s not fair.. Distributed generation Current network charges for distributed generation (Rutovitz et al, 2015) – Institute for Sustainable Futures - UTS

Methodological aspects PV+EE value with net metering in Australia, hour by hour, sum for year 2016 and escalated for 25 years Hourly data from real PV systems, household demand and seasonal EE energy savings profiles in Australia Time-of-Use LNCs taken from ISF study based on the non-used LRMC of the network

COMBINED PV+EE financial value Adding AC-EE to households with PV reduces the PV value quite a lot Adding LNCs to households with PV increases the PV value quite a lot Adding AC-EE and LNCs to households with PV maintain the PV value … and maximizes the PV+EE value LNCs can ALSO (not only fairer FiT) remove barriers to the combined uptake of PV+EE