                     Grid-Interactive Renewables 
             (notes for a talk presented at Northern Metro-
             politan College of TAFE on Thursday 16 May 1996)

* EC: NFFO - "Non Fossil Fuel Obligation" has stimulated wind and 
 micro-hydro businesses in many EC countries. Denmark, Netherlands, Spain, UK.
 Biggest growth now in Germany: dying forests = political will.
 France = nuclear

* USA Tax Incentives (1980's) - big wind farms in California. Reduced 
 rates of development since incentives removed.

* Australia - huge inland solar and southern coastal wind resource. 
 International commitment - Rio Summit on Greenhouse, watered down in Berlin:
 carbon tax killed.  Electricity industry is coal-fired, some peaking hydro
 and gas turbines. Considerable excess capacity in Vic/NSW stimulates 
 "national grid" development. Victorian brown coal worst for CO2 1.5 kg/kWh 
 (black about 1kg/kWh). Nuclear raises its head: Ranger No.3 mining, Entergy
 Corporation buys 100% of CitiPOWER, and has a presence in Indonesia (?wants 
 to build nuclear reactors there).

* National Grid - COAG, Keating's "One Nation", competition, "level playing 
 field", "correct market signals"-
	* ACCC - watchdog
 	* NECA - administration
 	* NGMC - setup of market, formulate rules
 	* NEMMCO - electricity "stock market" opens on 3 October 1996. 
	  Information -> PASA -> participant investment decisions, "market
	  forces".

* Derogation: Victorian legislation & VPX Codes could override National code 
  objectives until 2001. Lobbying may be needed.

*"Embedded Generation" small to medium scale generators (can be over
  30 MW !) connected to distribution networks, as opposed to transmission
  networks. DEST, changes to Code: "easier to connect" (??) NSW Legislation
  on Greenhouse Emission Reduction: Sustainable Energy Development
  Authority: any distribution company wanting to sell electricity in NSW will
  have to comply with the new legislation. e.g. Victorian coastal wind farms
  connect to local grid (embedded), become a 'pool participant', and sell 
  (notional) electricity to NSW distributors.

* Breamlea Wind Generator (BWG): Network connection & energy trading:
  BWG will soon be signing a network connection agreement with Powercor. 
  Powercor's wires business has to be paid by BWG for the connection assets 
  (the substation). The energy is being paid for by CitiPOWER in Melbourne.
  CitiPOWER bills Powercor for the energy (which is all used in Powercor's
  area).  If Breamlea had a "smart meter" with telemetry and applied to
  become a Participant, all energy could be sold through the wholesale 
  market. Only economic if a firm contract is made with a buyer (two-way
  hedging contract). The agreed price might be 8 cents/kWh. Average April
  1996 Pool price to 20/4/96 is only 0.6 cents/kWh. Thus on average in each
  half hour, with BWG producing 6 kWh, the pool would pay BWG 3.6 cents and
  the buyer would pay BWG 44.4 cents.  If in any half hour the pool price
  goes over 8 cents, then the pool pays the full amount to the generator
  and the generator pays the buyer the difference! Such are the complexities
  of the existing VicPool wholesale electricity market, and things will be
  much the same under NEMMCO! The existence of secret hedging contracts means
  that the true cost of wholesale electricity is not public information,
  and not reflected in the published Pool Price (SMP) (80% of energy 
  currently traded is subject to hedging contracts).

                                     M Gunter 
	