Business Energy Assessment Energy Cost Saving Options David Thompson Senior Project Officer

1. Business Energy Assessment Energy Cost Saving Options David Thompson Senior Project Officer Regional Development Australia – Northern Inland

2. Our Region $10.3 Billion of Economic Value 20,000 businesses $410M+ expenditure on gas & electricity

3. Business Energy Costs

4. Business Electricity User Type Large (contestable) >100,000 kWh/yr Small <100,000 kWh/yr Time of Use Meter Standard Meter Standard Meter Time of Use Meter Standard Flat-rate Plan Standard Flat-rate Plan Negotiated Contract Flat Rate Plan Standard Time of Use Plan Standard Flat-rate Plan Negotiated Contract Time of Use Plan Negotiated Contract Flat- Rate Plan Standard Time of Use Plan Standard Flat-rate Plan

5. Flat Rate vs Time of Use Plan Decision – when do you use most electricity? Daily rate = 115 - 154.91 c/day Flat-rate Rate kWh rate = 22.18 - 29.78 c Daily rate = 614 - 625 c/day kWh rate peak = 30.32 c Time of Use kWh rate shoulder = 30.32 c kWh rate off peak = 16.89 c

6. Peak Demand Charges Charges for large users based on the maximum instantaneous load they put on the grid in any month These can be the largest cost on your electricity bill kVA

7. Eliminating Peak Demand Charges • How? • Change business practices • Invest in renewables • Invest in energy efficiency • Invest in power factor correction unit(s) • Get below 100,000kWh pa from the grid

8. Gas Costs Most areas: LPG only Tempered LPG pipeline 4.95c/MJ Simulated natural gas pipeline 2.6c/MJ 9.8c/MJ 1.6 – 3.5c/MJ Natural gas pipeline 1.4c/MJ Unlike electricity, less choice

9. Large ‘On-Grid’ Renewable Energy • Green Power • Typically adds around 6c/kWh to per kWh cost • Powershop – can pre-purchase energy • Diamond Energy – specialise in renewable electricity, business use >$30,000/year in electricity

10. Large ‘On-Grid’ Renewable Energy Large scale Renewable certificates = 7c/kWh Coal-fired baseline

11. Small ‘Behind Meter’ Renewable Energy Solar Paybacks

12. Small ‘Behind Meter’ Renewable Energy Solar Install Costs

13. Are the Solar Panels Good or Bad? Vmpp x Impp Internal resistance = Voc x Isc < 0.6 = Bad 0.6-0.8 = Good >0.8 = Rolls Royce

14. Small ‘Behind Meter’ Renewable Energy Biofuel Costs

15. Small ‘Behind Meter’ Renewable Energy Wind Install Costs • Small-Med Scale Wind • Can’t yet compete with solar on install costs and reliability • More complexity in terms of getting the site right

16. Reducing Energy Costs

17. Funding Your Renewable/Energy Efficiency Project Finance Government Grants & Support Income Stream Equity or Venture Capital Partners

18. Key Messages • 2-15% of operating costs • Simple low cost investments can reduce cost of more complex investments • More options with electricity than gas • Tackle peak demand charges if >100MWh per year • Small scale (behind meter) - Solar is proven, Wind is not • Solar – large variation in quality. Simple calc. to show quality • Large Scale (in front of meter) – many renewables now reaching economic parity with coal, but often requires renewable energy credits • Battery Storage – soon economically viable

19. www.rdani.org.au Reports can be found at: www.rdani.org.au/projects/northern-inland-business-energy-assessment.php