Page 48 - Energize January 2022

VIEWS AND OPINION

Zero electricity bill: What’s the catch?

What follows self-generation and storage: Abstraction from the grid

by Fereidoon P. Sioshansi, PhD, Menlo Energy Economics

or some time, futurists – people produce and store energy. Distribution
who reside outside the proverbial utilities, energy retailers, energy service
Fbox and do not have to necessarily companies (ESCOs) as well as smart
justify their pronouncements – have been aggregators and intermediaries are
talking about a future where electricity – now looking into business models to
at least the portion of the costs attributed take advantage of these emerging
to generation – will be free. Back in 1954, opportunities.
the then-chairman of the Atomic Energy As described in an article published
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Commission, Lewis Strauss, used the on 28 September 2021 , an example of
phrase “too cheap to meter” in a speech such future possibilities is being tested
that turned out to be a phenomenally in a smart solar and battery storage
optimistic prediction about the future of demonstration project getting underway
nuclear power. in New South Wales (NSW), Australia with
For a number of reasons, nuclear Ausgrid, a regulated distribution company,
power has not turned out to be too cheap collaborating with Reposit Power, a
to meter. In fact, presently it is among the technology provider.
most expensive ways to generate power. The project aims to allow residential Fereidoon P. Sioshansi
Many argue that Mr. Strauss’ prediction solar to continue to thrive, while avoiding
could have turned into reality had it not congestion on the distribution lines at Spaccavento (slightly edited), “Once
been for the fact that the option was times of peak excess generation. This is (the) system is installed, the household
squandered – it is a long story. no longer an academic concern especially is effectively ‘abstracted from the
Fast forward to more recent in places such as South Australia, where electricity system’ in the sense that the
predictions and one can point to the on a recent Sunday afternoon rooftop customer uses the power it needs, when
fact that virtually all renewable energy solar provided 84% of the demand on it needs it, without giving a thought to
resources – setting aside the significant the network. The project will attempt cost or management (of energy) – that
capital costs – are zero marginal cost since to create and manage a two-sided responsibility is handed over to Reposit
there is no fuel to burn. In fact, when market, where services are bought from and Ausgrid.”
renewable generation exceeds demand distributed energy resources (DERs) on “The grand bargain is you buy solar
– which frequently happens when there the customer-side of the meter such and battery, you put our controller on it
is too much solar and/or wind – prices as rooftop solar, storage devices and and you give us total control.”
can go negative. It is not uncommon electric vehicles (EVs) while delivering “In return for that, we give you zero
for grid operators to curtail renewable reliable service to all customers including electricity bills, guaranteed, which means
generation, a technical term for dumping those without solar, batteries or EVs. The Reposit is taking the risk associated
the excess supply. experiment will expand Ausgrid’s current with the quality of the equipment, the
That, however, is not the end of the 400 households with solar and battery quality of the installation, the quality of
story of free electricity. As more consumers storage to 1000 participants. the trading behaviour… [And] if we get it
self-generate by installing rooftop solar To encourage new participation, wrong, we wear it.”
PV panels, there are times when there is volunteers will be offered a free product For the scheme to work, it is crucial
excess distributed generation feeding into (no electricity bill) initially for five years that Ausgrid deliver its part of the bargain
the distribution network – usually at the to customers investing in at least 6,6 kW – giving Reposit “a safe operating band,
same time that utility-scale solar power of solar plus a minimum of 11,8 kWh of through which we can export and import
plants are also flooding the network from battery storage, plus a control device to from the network” for all the participants.
the upstream side. be monitored and managed by Reposit. Meanwhile, the Reposit controller
As the cost of distributed storage The initial investment is estimated device installed at every house makes
continues to fall, many of the so-called around AUD$18,000 (US$13 000), not an decisions on when to import electricity
prosumers will find it cost-effective to unreasonable amount for five years of zero from the grid, when to use or store
invest in storage, therefore becoming electric bills. rooftop generated solar power, or when
prosumagers – i.e., consumers who According to Reposit CEO Dean to export solar power, while also making

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