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Peel Renewable Energy owns and operates the renewable electricity microgrid (Peel Microgrid) and supplies power to customers at the Peel Business Park, a large industrial and agri-business precinct located near Nambeelup, and approximately 7km north-west of Mandurah, Western Australia.
The first stage of the Peel Business Park is being developed by Development WA''s Industrial Lands Authority and is a core element of the Western Australian State Government''s Transform Peel initiative.
The Peel Microgrid is one of the first renewable industrial microgrids in Australia and consists of an embedded 22kV electricity distribution network, a connection to South West Integrated System grid and deployment of onsite renewable generation and battery storage assets, including an initial 1.2MW solar array and 2.5MWh battery energy storage system located on Lot 31 of the estate. As the number of occupants and overall power needs at the Peel Business Park grows, Peel Renewable Energy will also lease roof space from businesses to install additional solar panels to generate additional power for distribution and use within the microgrid.
The Peel Microgrid will supply reliable, sustainable and affordable electricity to owners and tenants in the Peel Business Park, typically via radial low voltage from our distribution stations but high voltage connections will also be possible. The Peel Microgrid will enable Peel Renewable Energy to deliver to Customers in the industrial estate electricity cost savings of up to 30 per cent along with sustainability benefits from at least 50% of all energy supplied being from renewable sources.
Peel Renewable Energy is licenced by the Economic Regulation Authority of WA as both an Electricity Distributor and Electricity Retailer under the Electricity Industry Act 2004. The Peel Microgrid will be operated in accordance and be subject to a range of technical, safety, regulatory and related obligations that are imposed by law or under arrangements, including in relation to the connection of Customers, the modification of Customer equipment and facilities and network augmentation.
Peel Renewable Energy has partnered with the DevelopmentWA Industrial Lands Authority, renewables specialists Sunrise Energy Group and Avora Energy along with Synergy to deliver this innovative project.
The energy sector move to low carbon renewable power systems is pushing users into technology evaluations focused on cost, efficiency and long-term sustainable operation.
One of the few certainties for many users is that relying solely on changes to take effect quickly, smoothly and reliably within the existing carbon intensive power supply chain is not an option.
In a such system that is transitioning so radically the questions include: ''How quickly and effectively can I transition to a green hybrid renewable alternative power supply?'' Where is the power going to come from? As they transition away from reliable yet carbon emitting fossil fuels in favour of less reliable and often intermittent renewable energy resources for how much longer should I expect to continue to tap into already strained traditional power grids?
It is hard to overstate the rate and scale of change. We believe the plan to "rewire the nation" to a grid system reliant on over 80% renewables by 2030 can only be achieved through the development of more islanded, integrated, connected and networked Microgrids across communities and industries.
And with that will come technical challenges.
From evolution to revolution
Australia''s National Electricity Market (NEM) system is vast and concentrated in places, non-existent in others. It is also disjointed with an estimated 1700 separate grids contributing to supply across the nation.
Demand is diverse with applications such as energy intensive mission critical data processing, hospitals, mining, industrial, commercial, and residential, all have different market drivers, load profiles and power quality dependencies. Then there are regional centres across the nation typically with low criticality but high dependency often suffering from end-of-line poor power quality.
Its transition starting point is from a carbon intensive energy system that saw fossil fuels contribute 71% of total electricity generation in 2021, including coal (51%), gas (18%) and oil (2%). Renewables contributed 29% of total electricity generation that year. The good news is that use of renewables is steadily rising.
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More good news is that the distributed nature of the grid ecosystem provides opportunities for rapid change to microgrids if we are to meet our clean energy aspirations.
For context the April 2023 IEA (International Energy Agency) report on Australia revealed a mixed bag of opportunities, progress and challenges.
The hard challenges are ''the National Energy Transformation Partnership (NETP)'' including ''a revised 2030 Nationally Determined Contribution (NDC), pledging a 43% reduction of greenhouse gas (GHG) emissions by 2030 from 2005 levels and net zero by 2050.''
Clearly the acceleration of solar and wind renewables is underway. The IEA report says: "In the NEM, the Australian Electricity Market Operator (AEMO) expects renewable energy to account for 83% by 2030 as part of the Step Change Scenario, which is aligned with the Australian Government''s plans of reaching 82% of renewables in the national electricity mix."
In such a transformation the grid as we know it is not fit for purpose. Even with large BESS deployments it will require locally operated microgrids with power generation close to the user.
Microgrids are not new (but they are changing)
Microgrids or grid independent power plants are not new. What is new are microgrids with direct connections to renewable energy sources at scale. Future microgrids will run on a hybrid mix of renewable energy sources backed by local engine based clean reliable power sources, conditioning UPS technology and energy storage (battery and/kinetic for emergency ride through or grid scale BESS).
There are no off-the-shelf turnkey solutions to fit all user profiles. There will be many use cases and variables for the many different microgrid types. But there will be common requirements across microgrid power chains connecting renewable power resources to critical workloads.
The direction of travel to renewables is clear and the trajectory is accelerating.
For companies and communities looking beyond the broader economic and societal impact of energy transition into the technical challenges to be solved and options available to facilitate the necessary moves to green power at scale there is much to consider in terms of security, stability and sustainability of supply.
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Decentralized and clean energy systems bring cost and environmental benefits.
As cities and industries ramp up their electrification efforts, aging energy infrastructure is buckling under the growing demand.
Power disruptions and price volatility have been exacerbated by utility expansion backlogs and increasingly frequent extreme weather events, fuelling an unprecedented market for microgrids.
These decentralized energy systems integrate renewable energy sources and energy storage to supplement central utilities, enhancing grid stability and helping buildings maintain normal operations during outages.
Traditionally used to provide resilient power where local grids are unreliable, often in remote areas, microgrids are rapidly building a presence in more urban settings.
"Power demands are increasing faster than utilities can build infrastructure, and climate change is impacting the reliability of power," says Douglas Mackenzie, Vice President, Energy Resilience at JLL. "In today''s environment, microgrids are gaining traction among owners and occupiers looking to mitigate long-term risk, meet sustainability targets, and drive profitability."
Military facilities have long used microgrids for energy security, with the U.S. Army aiming to install a microgrid in all its bases by 2035. Now, microgrids are being adopted across industries such as healthcare and data centres where power outages create critical situations or have a steep business cost.
"When the power goes out, our clients lose money and the welfare of our communities is threatened," says Mackenzie. "Microgrids are one of the best tools we have to ensure the continuity of our businesses in a more volatile climate and future-proof our infrastructure for the electrification of our economy."
For example, airports, which face millions of dollars in lost revenue when power disruptions bring operations to a halt, are now recognizing the value of microgrids. Take New York City''s JFK airport, where a planned microgrid on the New Terminal One will be the largest rooftop solar array in the city. It aims to minimize the impact of power disruptions by generating clean onsite energy that will keep the terminal functioning through grid outages and stabilize utility costs.
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