BATTERIES AND THE LAW Graeme Dennis 5 April 2016 © Clayton Utz DISCUSSION POINTS Batteries - regulatory status Networks using storage Sale methodologies Network tariff reform Ownership of batteries Re-possessing a battery THE LAW OF CONSERVATION OF ENERGY Energy can neither be created nor destroyed; rather, it transforms from one form of energy to another. Wind turbine: converts thermal to mechanical to electric energy. Gas turbine: converts chemical energy to thermal energy to mechanical energy to electric energy. Hydro: converts potential energy to kinetic energy to mechanical energy to electric energy. Pump hydro: converts electric energy to mechanical energy to potential energy, and back. RE-CHARGEABLE BATTERY CELL Converts electric energy into chemical energy (storage); Converts chemical energy into electric energy (discharge). It is the initial consumption of electric energy, and the subsequent generation of electric energy from chemical energy. It is a form of electric generation. NEM RULES Generation: The production of electrical power by converting another form of energy in a generating unit. Generating unit: The actual "generator" of electricity and all the related equipment essential to its functioning as a single entity. Surely a battery unit is a generating unit? NETWORKS USING STORAGE Ring-fencing guidelines distinguish between direct control services provided by distributors and transmission operators, and their other businesses. Should networks be allowed to own and operate storage systems as other businesses? What is the advantage or synergy to be obtained if they are ring-fenced anyway? SALE METHODOLOGIES Self-use behind meter? Export to retailer? Export to small generation aggregator? Export to neighbour? Strata corporation to building occupants? See particularly retailing exemption R8 sales to customers with a grid connection. NETWORK TARIFF REFORM Move to cost-reflective pricing. Move away from usage based pricing. Greater TOU emphasis will give value for storage. Peak demand charging also gives storage an avoided network charge value. THE TESLA POWERWALL WHO OWNS THE BATTERY? Where » » » » » the battery is: Inside a motor vehicle; Plugged into a power socket; Screwed onto the wall; Wired into the building network; Integrated into the building walls? What if the property is tenanted, mortgaged or sold? RE-POSSESSING A BATTERY Can you re-enter premises to remove your battery (and meter)? If you are given a licence to enter by the original customer, does that bind their landlord, mortgagee, successor in title? Does ownership of a battery "run with the land"? Do we need statutory rights of re-entry for batteries and meters? www.claytonutz.com
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