Commercial in confidence – the following document contains commercially valuable and confidential information to Horizon Power

Ben Hamilton

Horizon Power

Distributed Energy Resources in Microgrids

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Horizon Power is a State Government-owned,

commercially-focused corporation that provides high quality, safe

and reliable power to about 100,000 residents and 10,000

businesses, including major industry, across regional and remote Western Australia.

Horizon Power has one of the largest portfolios of remote

microgrids in the world.

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1. Why are microgrids important?

2. Remote microgrids - a Distributed Energy Resources story.

3. Business model disruption.

4. Grid-tied microgrids – sleeping giant or latest buzz word?

5. The ‘matriphagy’ effect

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“A microgrid is a distribution network that incorporates a variety of possible DER that can be optimized and aggregated into a single

system that can balance loads and generation with or without energy storage and is capable of islanding whether connected or not

connected to a traditional utility power grid.”

(Navigant Research)

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Kulumburu, Western Australia

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Carnarvon, Western Australia

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Nyirripi, Northern Territory

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Why are microgrids important?

Cumulative Remote Microgrid capacity and revenue (USD)Source: Navigant Research

Annual grid-tied and remote microgrid capacity in Asia PacificSource: Navigant Research

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Distributed Energy Resources – here they come..

Source: Bloomberg New Energy Finance Residential

Australian Small-Scale PV (GW) Australian Energy Storage (GWh)

Commercial Industrial

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DER– digitally enabled renewable energy.

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System level economic modelling guides the

transition to new Business Futures across all Horizon

Power service areas.

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System Blueprints forecast an aggressive economic shift to a DER business future

Graphs: Breakdown of Horizon Power systems per most economic business future.

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The DER Microgrid – lowing overall supply costs and developing local economies

Source: Microgrid Business Models, Multi-Client Study 2015 (Navigant Consulting) and Horizon Power analysis

Traditional utility costs in a conventional

isolated energy system

Limited involvement from Consumer

Microgrid Operator

Rise of the Prosumer / Community Powered /

Citizen Utility

~ $0.45/kWh

~ $0.30/kWh

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Supply chain costs shared between utility and prosumer / community

Microgrid Operator

Rise of the Prosumer / Community Powered /

Citizen Utility Community Solar Farms

Community RetailingLocal O&M services

Vegetation Management & Land Clearance

DER Servicing & Maintenance

DER Onwership

Intelligent System Control (microgrid controller)

Energy efficiency programs

Energy Trading Platform

Digital Metering

Multi-flow Network

System Stability

Modular Generation

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Apple Spaceship – a 20MW microgridAlkimos Beach - Perth

A Microgrid Grows in Brooklyn – Scientific American

Solar Settlement in Freiburg, Germany

…but what about grid-tied Microgrids

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“a localized grid that can disconnect from the

main power grid, operating independently and

reinforcing overall grid resilience.”

Tesla Energy microgrid definition

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New growth with Startup Science™. Source: Pollenizer

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Project Highgarden

Multi-Flow network Intelligent Consumer ServicesIntelligent System Control

Stand-alone Power Systems

High penetration renewable energy and storage

+─

Modular generation capacity

‘To study and recommend viable options that resolve technical and transition barriers and that lowers the system cost (LCOE) of delivering a high penetration Distributed Energy Resources business future by 25% (compared to current design assumptions).’

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Power Ahead Research Pilot…

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Horizon Power promo

Video of Power Ahead trial