Retail electricity in a decentralised grid

New economics

New customers

New generation & storage

New world axioms & Diamond Energy

Conceptual Map

Solar, the Half Hour Effect, Generation and the Duck

Embedded Generation & Micro-grids/Networks

Large Scale Renewable Generation Projects

Market Issues

Today’s Discussion

The new energy world axiom’s are;

Renewable energy is cheaper than coal fired electricity

The ‘grid’ is the reserve supply for localised generation

Empowering the consumer to consume less and produce

more is the most profitable business model

Moving ahead of the media biased anti-carbon tax rhetoric

...and in a world where $$ speak to consumers common sense

...when a customer is equal to or better off being supplied by

localised energy, the tipping point to the new energy world

axioms will almost instantly occur.

The New Energy Era (Market)

Conceptual Model

Economic Return

Environmental Return

Electricity

Heat &

CO2 Reduction

Cogeneration,

Distribution &

Interruptible

Load

Diamond Energy’s aim

is:

Deliver increased

Economic return

Deliver increased

Environmental return

Through the combination

of key market based

skills in Electricity &

Distributed generation.

Diamond Energy was formed in 2004

Active across Victoria, NSW, SA, and QLD

Owns Renewable Electricity Generation

Head Office based in Melbourne

SunPower Corporation is a cornerstone shareholder

Is an independent Renewable Generator & Retailer

Who Are Diamond Energy ?

Solar here’s now, Batteries ?

Source: R. Corkish, Head of School, UNSW Engineering Feb2011Source: R. Corkish, Head of School, UNSW Engineering Feb2011

⇧ Efficiency

Solar brings it’s own issues

The Duck is already here !

A Sunny day in winter …..brings out the Duck

Switching – why ?

Electricity accounted for 3.0 % to 7.3 % of a households disposal

income in 2014

• Supply to Local Buildings & Manufacturers

• Balancing in NEM

• Include other additional generators

• Use LREC’s to secure “ green power” & mandated

• Additional LREC’s managed/purchased

• electricity export/import data and tracking

• inclusion of ancillary energy assets if so required

• ongoing embedded network management & billing

• ongoing “green” performance target management

Need capability to manage complete end-to-

end asset delivery and ongoing operation ,

including:

A

B

C

D

E

F

As an electricity retailer and NEM participant

allows for innovative project delivery and

energy risk management approaches.

Embedded & Micro Grids

Alignment of Incentives

Turn Australia’s disadvantage

into a competitive advantage

Efficiency = Cheap Carbon

reduction

Use power where it is

produced

Power consumed at source is

the cheapest

Market Design – levers for growth

Challenges Facing Large Generation

Projects

1. Limited choice of PPA provider

• Competition with internal projects

2. Pricing of PPA’s

3. Access to Debt Markets and Bank

Values

4. Limited lenders & reliance on PPA

5. Merchant and Government Risk

6. Return on Equity across project life

• Traditional PPA fixes return on equity ⇒ no

opportunity to participate in market

“Market Access”

Barrier

AER has offered Solar PPA providers “retail license

exemptions”

how do they meter and bill within the NER ?

National Energy Retail Objective

to promote efficient investment in, and efficient operation and use of,

energy services for the long term interests of consumers of energy with

respect to price, quality, safety, reliability and security of supply of

energy.

Exemptions vs Licenses

The new world energy axioms are almost

here…..be part of the transformation ….work with

Diamond Energy to Generate Change !

Final Thought !

EMAIL: corporate@diamond-energy.com

Phone: 1300 838 009

Fax: (03) 9006 9031

WEB: www.diamondenergy.com.au

www.diamond-energy.com

www.commercialgreen.com.au

Thank You For Your Time !