1. Generation by a range of public and private Cos. Mix of generators and distributors Grids - networks - the biggest costs "A flawed regulatory process forcing consumers to pay too much for electricity can and should be fixed. While the National Electricity Law is a complex challenge, our analysis finds that these flaws have unduly shifted the balance away from consumers and towards investors. They have led to avoidable costs to consumers of around $2.2 billion a year. These costs will only escalate if changes are not made." Energy Cost Background AEMO Report 2012

2. WA SA NT NSW VIC Qld Tas COAG MCE SCO AEMC Rules AEMC Rules AEMO Operations AER Regulations Jurisdictional safety regulations Jurisdictional safety regulations Jurisdictional safety regulations Jurisdictional safety regulations Jurisdictional safety regulations Jurisdictional safety regulations

3. 47,000 kilometres ElectraNet Pty Ltd (South Australia); Powerlink Queensland (Queensland); SP AusNet (Victoria); Transend (Aurora) Networks Pty Ltd (Tasmania); TransGrid (New South Wales); Western Power (Western Australia). Taxpayers paid for it $93m per annum

4. Energy Suppliers AA says $25b needed for grids Councils face escalating costs for street lighting - community halls – civic centres - libraries - that means more cost to you Jul 2014 Over the past 5 years Power bills went from $970 to $1660 pa

5. Tasmania second highest energy costs in Australia Tasnetworks -Lance Balcombe wants to cut solar tariffs to ensure: “all Tasmanians are enjoying the lowest electricity prices possible.” Grid costs WA $460 pa Tas $1,100 p a Jul 2014

6. Carbon tax the cause ?

7. The lucky country?

8. German solar impact on energy cost €60/MWh

9. €65/MWh around 9am (EPEX) Solar halved the price!

10. What VH did via bulk purchase  Initiated a PVP retrofit program  Based on Prof. Blakers (ANU) model  Public Consultation  Briefed adjacent councils  Let Expression of Interest  Low interest loan  $1995. for 1.5kWh installed  Coordinated retrofitting on all houses  Provide for ongoing program - $75 rego.  Utility made $500k selling I/O meters www.solarprogram.com.au

11. Results– 09/10  720 Fleurieu ratepayers invest $2,500 - $2.25m  1,000 more in adjacent councils  $8m in Federal Government solar rebates  ZEN installs $20,000 local office - 3 - now 4 jobs  24 local electricians contracted for installs  $80,000 in local newspaper advertising  Ratepayer p/a power savings estimated at $250,000  $87,000 raised via rego fees  $30,000 ZEN/Adelaide Uni/Vic Harbor partnership for renewables research proof of concept (hybrid)  ETSA got $500,000 for new meters  C-PREP saves approx. 1,150 Tonnes of CO2 p/a  LGA Copied the program across 18 more councils

12. VH today - 10mW power on sunny day

13. 1 in 5 or 2.4% of total demand in SA Melb Uni Rsch. State Results

14. DE affects nationally? Outstanding!! Electricity, gas and water cost per week, Nov 2012 Adelaide $70.75 Canberra $69.23 Melbourne $67.38 Hobart $62.02 Sydney $58.18 Darwin $57.41 Brisbane $53.50 Perth $52.62 Source: SA Council for Social Service

15. “You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.”

16. Our future – the 3 rd industrial revolution 1.The change from fossil fuels to renewables- irreversible 2.Every dwelling/shed/paddock becomes a mini power plant 3.Energy storage in areas, buildings and across infrastructure 4.Internet to create smart grids-intelligent utility networks 5.Transitioning the global transport fleet to electric/fuel cell plug-in

17. 1&2- Every dwelling/shed/house becomes a mini power plant

18. 3-Energy storage- batteries- "the killer app” Almost entirely made out of plastics and with a footprint of 800mm x 400mm (and 800mm high), it weighs 220kg, a fraction of the mass of comparable lead-acid batteries. It is designed for day-in day-out deep cycling with three to eight hour charge and discharge times and is the ideal building block for grid scale electricity storage systems. Delivers 10Kwh with a peak rating of 5kWh

19. CSIRO- Intelligent (smart) Grid Report 15 Mar 2010 Wide scale deployment DE - $130b – 2050 PVPs dominate DE growth from 2015 Critical role in Australia’s future 4-4- Advanced Battery Management System Real-time battery module measurement and report: voltage, current, temperature, Cell Capacity, SOC, Efficiency and SOH Active balancing that keeps cells balanced at all times Battery module protections against under/over-voltage, temperature and over current In-field configurations:DOD,voltage protection ranges, power ramp rates and charge rates Dynamic,real-time power control. Switch between charge and discharge in less than 2 seconds Ethernet, serial and Web-based communication and control Peer-to-peer networking across multiple units to form larger, virtual unit Support drop-in custom modules Smart Grid ready Battery Operating System III (2014)

20. 5. Transitioning the global transport fleet to electric/fuel cell plug-in

21. How Ungerman Bass sees it.