Think local for electricity, CSIRO urges

Canberra Times
Saturday 12/12/2009 Page: 3

Australia could cut $130 billion in energy costs and 18 trillion tonnes of greenhouse gases over 10 years by decentralising its electricity generation, a new CSIRO report says. The nation's top science agency has called for an "engineering revolution" to create a smarter, greener and more local system of electricity generation. The 592-page report, by the CSIRO Energy Transformed research flagship, is the first comprehensive study of how local electricity generation systems - known as distributed energy - could dramatically cut Australia's carbon footprint.

Distributed energy describes systems which provide local generation of electricity, improved energy efficiency and better demand management of how and when electricity is used. A typical system might include solar panels, small turbines, capture and use of waste heat, more efficient heating and cooling, a power storage system and a mini-grid to manage demand. CSIRO's intelligent grid project leader, Anthony Szatow, said, "The technologies already exist, and we know distributed energy systems are reliable. It's not scary, it's not messy, it actually works... "Where we need innovation for the future, is in thinking about new ways to design energy systems. That's the challenge, because each system is a one-off."

The report warned that by sticking with a centralised electricity supply system, Australia runs the risk of "inefficient technology lock-in". It said a new electricity supply model with decentralised power generation and local demand management would improve power quality and cut costs, particularly for rural areas. When combined with energy efficiency and reduced energy demand, distributed energy was Australia's "most cost-effective greenhouse gas mitigation option," the report said.

Studies conducted by the CSIRO energy flagship estimate the average wholesale electricity price could be cut by 12% by adding just 0.6% of distributed energy to a conventional power generation system. Large-scale distributed energy systems could boost energy efficiency by up to 45%. They also reduced transmission congestion and losses. "We also found water used for electricity generation could be reduced by up to 75%, with a combination of distributed energy and large-scale renewables. That's pretty significant when you consider the wholesale price of electricity doubled in 2007 due to the drought," Mr Szatow said.

As climate change increased the risk of power outages from bushfires, storms and high wind speeds, distributed energy systems would reduce the risk of loss of transmission lines and energy infrastructure, the report said. Australia's energy supply system was "developed at a time when a large scale, centralised generation plant close to fossil fuel resources was the optimal supply model". A new research and development program was urgently needed to modernise the grid and fast-track smarter, more efficient digital smartgrid technologies. "There is an increasing acceptance that Australia's energy supply system needs to evolve in order the meet the dual challenges of climate change and energy security," the report said.

A survey conducted by the CSIRO energy team found barriers to a wider uptake of distributed energy in Australia included poor understanding among government policy makers of how distributed energy systems worked. There was also a failure to grasp the economic and environmental importance of energy efficiency and a reluctance to change decisions and habits. Mr Szatow said energy consumers, industry and governments "all need to be educated in the value of distributed energy and how it works to overcome a cultural bias towards mains grid energy supply".