Posts Tagged → policy

Flat fees for flexible EVs

This study builds upon the recently published Unplugged is inflexible report to explore one avenue by which EV drivers could be incentivised to: 

  1. plug their EVs in for extended durations, and  
  1. permit their vehicles to be charged flexibly.  

While there are many avenues by which this could be done, we here explore the potential for EV drivers to be offered very simple, flat retail offers based solely on how often they plug in their EVs and how much energy their EV consumes. This approach entirely removes considerations of when in the day vehicles are plugged in, which lightens the mental burden on drivers and may contribute to greater acceptance of managed charging. 

This concept is motivated by the belief that creating price-certainty, and ideally cost-certainty, is a core way in which electricity retailers create value for their customers. This EV charging arrangement engages customers (EV drivers) is a quid pro quo where retailers contribute their expertise and diversity of customers to manage pricing risk, and EV drivers contribute the flexibility of their charging demand. 

Our modelling shows that doubling the amount of time EVs are plugged in for reduces the cost of charging by half. To be clear, this requires nothing of EV drivers other than having their EV connected to a charger for longer periods, which enables more flexibly charging behaviour. 

To quantify the risk for retailers we conduct a statistical analysis in terms of the cost of EV charging per day or per kWh. This suggests that offering a fixed price per day may go beyond retailers’ risk appetite, making a fixed price per kWh the more attractive option. This is likely also fairer for customers as it charges for the precise amount of energy used. 

The addition of vehicle-to-grid increases the benefits of longer plug-in times by facilitating market arbitrage. Vehicles that are driven less than 40km per day and are plugged in to chargers for more than 8 hours a day (with vehicle-to-grid) can, on average, be charged at zero or negative cost. 

While outside of the scope of this study, we note that this same tariff concept (and simulation model) could be applied matching flexible EV charging with the generation of a collection of wind or solar farms. This would provide another way for a retailer to manage/fix their price exposure while simultaneously creating value for customers by charging vehicles with zero emissions power. 

Full report below

Continue reading →

Watt equity? Australians deserve a Basic Energy Right

This essay was first published in Australian Quarterly 95.3, Australia’s Longest running public affairs magazine, published by Australian Institute for Policy and Science https://aips.net.au/aq-magazine/current-edition/

AQ-95.3-JUL-SEP-2024-Watt-EquityDownload

Within the energy industry there is a popular, feel-good refrain that the energy transition will deliver a system that is ‘democratised’, in addition to being ‘decarbonised’, ‘digitised’, and ‘decentralised’. Here democratised is used as an umbrella term for a broad suite of desirable values: fair, just, equitable. Yet the way in which democratisation is envisioned to occur is, in contrast, blinkered – households are seen to gain political power as a consequence of their generating and controlling electrical power from rooftop solar, batteries, and electric vehicles – but what about those without?

This prevailing narrative of democratisation overlooks, amongst other things, the connection between privilege and ownership of these technologies, and the structural realities of social, as well as techno-economic, power. In particular, it ignores the systemic effects of managing energy through markets and, consequently, ignoring energy’s role as an essential service underpinning modern life.

The starting point of this essay is that the energy transition is not on track to improve equity. This is because equity will only be improved if it is prioritised above competing values, such as profit, in the millions of design choices that constitute the transition.

Such prioritisation is impossible within the existing (artificially) constrained policy landscape, in which the only options are those within the framework of indistinguishable individuals interacting through a market. This eliminates any space for unequal redistribution in recognition of the differing circumstances within the collective, and thereby contributions towards equity.

Progress towards equity rests on expanding the policy imagination. This essay offers one such suggestion: the establishment of a Basic Energy Right that provides all households with a modest amount of energy free of charge to meet their essential needs.

Continue reading →

SwitchedOn podcast on Energy Equity

Delighted to be on RenewEconomy & Boundless Earth SwitchedOn podcast kicking off a discussion of how to *truly* improve energy equity https://reneweconomy.com.au/switchedon-podcast-free-electricity-to-cover-essential-needs/

“A popular refrain of the renewable energy transition is it will deliver an energy system that is more democratic, as well as decarbonised. That the political power of generating energy will shift from big power companies to households, as a result of us being able to generate and control electrical power from our rooftop solar, batteries, electric vehicles, etc.

But this decentralised, democratic narrative isn’t a foregone conclusion…”

EnergiZines: 43 personal interpretations of the energy transition

Last year I had the pleasure of working with the creative team of Engaged ANU (The Australian National University), Brad Riley and the inspiring Tristan Schultz on a pretty out there engagement that we called “EnergiZine – Nurturing Energy Transitions”. We’ve just uploaded the Zines created in these workshops for all to read and be inspired by https://dev.mtchl.net/energizine/viewer/

They represent 43 members of the public’s personal takes on the energy transition story, where it comes from and where it should lead to.

This short video gives a sense of what the evenings were like https://vimeo.com/847972505

Strata solar in Qld

Story in SBS about how an Australian physicist found a way to shave 10% off his neighbours’ power bills.

Arkadiy Matsekh changed the billing system of the embedded network of his housing complex. As a result, his neighbours are saving up to 10 per cent on their power bills.

Dr Sturmberg believes that the greatest achievement of this particular body corporate is that the community was able to reach an agreement and embrace change.

“Dr Matsekh seems to have done a lot of work by actually talking to his neighbours and getting their support,” he says.

“The bigger impact of what he has done is not kilowatt-hours of solar that he has produced. But the social expectations that he is setting in his neighbourhood.

The message to the broader society says that ‘everyone deserves access to cheap and clean power’.

Continue reading →

Response to Saul Griffith’s “The Wires That Bind”

This correspondence was originally published in the June 2023 edition of the Quarterly Essay, in response to the March 2023 edition by Saul Griffith.

While the pivotal role of electrification in decarbonisation has been understood for decades, it has rarely been described as vividly or enthusiastically as by Saul Griffith in The Wires That Bind. Griffith recognises that electrification is a story, at its heart, not about decarbonisation but about cleaning the air in our kitchens and streets, improving the liveability of our homes and communities, and “keeping wealth in our households and communities” – and nation. In short, electrification is a story about a better future.

While attuned to this human story of electrification, Griffith is, at heart, an engineer so it’s no surprise that The Wires That Bind is packed full of figures. Emissions are carved up, the grid is mapped and fossil machines are counted. This achieves Griffith’s goal of “clarity about the job in front of us” and complements his persuasive case for electrifying everything. The question that remains is: how can the transition best be accelerated and steered towards just and enduring outcomes?

Continue reading →

Community batteries are popular – but we have to make sure they actually help share power

New article in The Conversation today. Excerpt below.

The idea is for these batteries to reduce carbon emissions and energy bills while benefiting all energy users nearby, rather than only those with access to rooftop solar. These are great ambitions – small wonder they’ve proven a hit.

But the success of these batteries is far from certain.

Over the last four years, our research has found two areas we have to fix to maximise the chances these batteries actually do what we want them to do.

First, we need greater clarity on how we decide whether community batteries are a good investment.

Second, we need better measurement and evaluation of what these batteries actually contribute to the grid and to energy users.

In a new discussion paper, this article’s lead author argues the primary purpose of community batteries ought to be addressing constraint in the local electricity grid. This reiterates a consistent finding from our research.

While this sounds reasonable, community batteries aren’t the only option to fix local grid issues. That means we should only turn to them where they are clearly better than the alternatives, such as upgrading transformers.

What about storing solar and shoring up the grid? These tasks may be done more efficiently and with less environmental impact with grid-scale batteries, pumped hydro or electric vehicle batteries.

And what about sharing the benefits of solar with people who can’t afford an array or who have nowhere to put one? While this vision is in line with public sentiment, the complexity of the privatised energy system makes it very difficult to redistribute financial benefits.

Community batteries are also no panacea for the desire of people to see and be included in national planning for the decarbonisation transition. An inclusive planning process can address uncertainties in how the transition will affect us and our communities and ensure it upholds public values.

Time will tell if the newly announced Net Zero Authority will deliver this.

Yahoo news: Call for energy rules, not cheap loans, for landlords

Home owners may welcome cheap loans for double-glazing or battery-ready solar but making negative gearing conditional on upgrades has been suggested as more effective for landlords.

Research shows up front costs are not the largest barrier to rental property investments in solar, and it may be the same for energy upgrades, energy expert Bjorn Sturmberg has warned.

Property investors do not believe spending money on new energy sources and appliances will get them higher rents – that’s the biggest barrier, Dr Sturmberg said on Wednesday.

Continue reading →