1. Simon Gamble Manager Hybrid Off-Grid Solutions Running a power grid with 100% renewables on King Island, Australia

2. Context and Key Messages It is possible to operate a MW scale island power system at 100% RE penetration o Despite myths around RE you can improve safety, reliability and security o Key is integration at all levels – policy, planning, design, control, operation However, to integrate renewable energy requires changes to system operation o utility must be involved : new paradigm = new capability requirements Attractive returns on investment are possible o Primary aim should be to displace diesel fuel through higher RE penetration o Technology has matured, demonstrations have mitigated risk Invitation to visit King Island and see the system working 2-day international workshop 18/19 November

3. Government Business Enterprise – owned by State Australia’s largest clean energy producer Utility responsible for generation, distribution and retail in the Bass Strait islands Developer, owner and operator of leading hybrid off- grid systems King Island was our test bed for solution development – menu of integration options Leading consultant to aid agencies and utilities, including: Yap, Cook Islands, Rottnest Island, Coober Pedy, Thursday Island. Hydro Tasmania Hybrid off-grid power systems capability

4. King Island location Source: Google Earth King Island : largely agricultural land use with world class wind resource

5. King Island power system 18 year development path for renewable energy Population approx. 1,6002.5MW load6MW diesel generation450km of 11kV Expensive system - diesel fuel is 80% of cost - incentive to use RE Adding RE is an integration challenge – RE displaces diesel generation High RE requires enabling systems – communication; control; services Requires holistic approach – policy, planning; phasing development Diesel fuel cost dominates

6. 1998 – First Wind Farm Low renewable energy penetration “Low hanging fruit” Deliberately limited RE installed No impact to operations Simplified Solar PV example 15% reduction in diesel

7. 2.45MW wind (1.2MW min load) RE controlled (limited) protect diesels Some RE is wasted (curtailed) 2004 – Wind Farm Expansion Medium renewable energy penetration Simplified Solar PV example 30% annual reduction in diesel Note minimum diesel operation

8. Enabling technology – Dynamic Resistor (Load bank) elements Resistive elements artificially increase the load: convert excess to heat Load balance is maintained (dynamically by resistors) – not diesel generators More RE is utilised – more diesel savings 2008 – First enabling technology Enhanced medium renewable energy penetration Counterintuitive : taking spilled energy & converting to a useful service 35% annual reduction in diesel

9. Absorb excess RE (increase the load) Recover excess RE (power injected) Applications o Load balancing o reserves o power for security of supply o energy shifting 2014 - Energy Storage An enabling technology option for high RE penetration Australia’s largest battery – 3MW / 1.5MWh King Island

10. 2014 – Advanced hybrid system Ability to operate at 100% RE penetration Need to always operate diesel generation has been a key barrier to renewables 100% RE systems require: Surplus RE capacity Full automation – high speed communication and control Enabling systems – that replace all services provided by diesels King Island flywheel – supports system without diesel generation Consumes surplus renewable energy to operate Also an instant start diesel generator to provide firm capacity

11. 2014 - Demand management Further optimise RE utilisation by altering demand to match available RE generation (another option) Aggregates controllable customer load to help balance demand / supply during high RE contribution and variation. Fast load shedding, smart EV charging, smart solar PV switching Monitoring customer load and providing data to customers via smart phone app.

12. 2015 - King Island System Proven, robust, reliable MW class hybrid system Result of planned, coordinated activity Winner 2013 innovation award > $24m in diesel savings (>$2m per annum)> 900 hrs of diesel off operation 65% diesel savings now possible Good return on investment Cost of power reduced

13. 2015 – King Island System Operation Extended “diesel off” operation (100% RE) Combined performance of enabling systems

14. King Island app & web site Real time data www.kingislandrenewableenergy.com.au

15. 2016 – Reduce cost of deployment New approach : Scalable modular enablers & control Flinders Island Hybrid Energy Hub Project – under construction Aim is to further reduce time, cost, risk of deployments

16. Further information: Hybrid Off-Grid Solutions Simon Gamble simon.gamble@hydro.com.au www.kireip.com.au “KIREIP” iPhone app Thank you