WO2019227121A1

WO2019227121A1 - Electricity supply network and method of operation

Info

Publication number: WO2019227121A1
Application number: PCT/AU2019/000066
Authority: WO
Inventors: Bryn DELLAR; Dennis Claridge; Damian MOLONEY
Original assignee: Onsite Energy Solutions Technologies Pty Ltd
Priority date: 2018-05-29
Filing date: 2019-05-29
Publication date: 2019-12-05

Abstract

The present invention relates to the field of energy networks, and method of operating those networks, including supply and/or distribution of energy, and in one particular form, a network and method of electricity supply and/or distribution. The present invention provides control of energy distribution in accordance with energy consumption relative to a predetermined fixed price and fixed term agreement, with effect on the supply and/or the customer side of the network.

Description

ELECTRICITY SUPPLY NETWORK AND METHOD OF OPERATION

FIELD OF INVENTION

[0001 ] The present invention relates to the field of energy networks, and method of operating those networks, including supply and/or distribution of energy.

[0002] In one form, the invention relates to a network and method of electricity supply and/or distribution.

[0003] It will be convenient to hereinafter describe the invention in relation to a network and method of electricity supply and/or distribution, however it should be appreciated that the present invention is not limited to that use only.

BACKGROUND ART

[0004] Throughout this specification the use of the word“inventor” in singular form may be taken as reference to one (singular) inventor or more than one (plural) inventor of the present invention.

[0005] It is to be appreciated that any discussion of documents, devices, acts or knowledge in this specification is included to explain the context of the present invention. Further, the discussion throughout this specification comes about due to the realisation of the inventor and/or the identification of certain related art problems by the inventor. Moreover, any discussion of material such as documents, devices, acts or knowledge in this specification is included to explain the context of the invention in terms of the inventor’s knowledge and experience and, accordingly, any such discussion should not be taken as an admission that any of the material forms part of the prior art base or the common general knowledge in the relevant art in Australia, or elsewhere, on or before the priority date of the disclosure and claims herein.

[0006] Full Retail Contestability (FRC) has“failed” with oligopoly Generator/Retailers (Gentailers), who together retain a dominant market share, unwilling to provide 2nd and 3rd tier retailers with competitive wholesale price hedge contracts as independently documented in the following reports: a. http://enerqvconsumersaustralia.com.au/publication/state-plav-quantifvinq- competitive-outcomes-retailinq-nem/ b. https://enqaqe.vic.qov.au/review-electricitv-and-qas-retail-markets-victoria

[0007] Lack of clear carbon abatement policy (and targets) have resulted in a lack of generation investment (except for Renewable Energy target (RET) investment); further exacerbated by the closure of old coal fired power plants (e.g. Hazelwood in Gippsland, Victoria, Australia)

[0008] Network regulation is in transition as grid consumption declines, consumer prices rise and the number of Distributed Energy Resource (DER) connections grows, see for example http://www.enerqynetworks.com.au/

[0009] To improve system reliability and security the Australian Energy Market Operator (AEMO) and Australian Renewable Energy Agency (ARENA) have entered into an MOU to collaborate to Demand Response (DR) develop solutions to provide supply side support, see for example https://www.aemo.com.au/Media-Centre/AEMO-and- ARENA-demand-response-trial-to-provide-200MW-of-emerqencv-reserves-for-extreme- peaks

[0010] Gentailer oligopoly dominance has over time entrenched system price risks with the consumer. Consumers are now paying a high risk premium, passed on the buy the supply side through complex tariff mechanisms that are hard for consumers to understand and compare in the market. Consumer price rises, driven by network spending and wholesale energy increases over the past decade, have resulted in consumers spending on energy reaching relatively unsustainable levels.

[001 1 ] The inventors have realised that consumers have become“fed up” with retailers and have lost their trust in the industry’s institutions. Increased network operating risks with greater levels of DER connections, raising frequency, voltage and capacity concerns. The economic Point of Inflection (Pol) for solar storage (versus grid supplied electricity) is expected in the next 2-5 years, see for example https://www. youtube. com/watch?v=2b3ttqYDwF0 Tony Seba: Clean Disruption - Energy & Transportation

[0012] The inventors have realised that Solar Storage installers are not held accountable for the performance of the equipment they have installed. This complicates the ability to predict energy generation performance and price.

[0013] At the Pol, behind-the-meter solar storage will become cheaper than grid electricity (further eroding the Gentailers control of system generating capacity and offering opportunities for new entrants to enter the retail market on a competitive basis). The inventors have realised that onsite behind-the-meter solar storage (SS) will within 5 to 10 years be the cheapest form of energy for customers (where they have physical capacity to install). Onsite SS energy production will over the next decade become ubiquitous within the grid. Network businesses main function will be to enable the balancing of long/short positions of millions of distributed SS units

SUMMARY OF INVENTION

[0014] An object of the present invention is to provide an improved network and method of energy supply and/or distribution.

[0015] It is an object of the embodiments described herein to overcome or alleviate at least one of the above noted drawbacks of related art systems or to at least provide a useful alternative to related art systems.

[0016] In a first aspect of embodiments described herein there is provided a method of and/or apparatus for distributing energy in an energy distribution network, the network comprising an energy supply and an energy consumer, comprising determining the costs of energy being supplied to the consumer from the supply, determining the energy usage by the consumer over a predetermined time interval, actioning control of energy distribution in accordance with the determinations relative to a pre-agreed cost by, any one or any combination of: • controlling the consumption of energy being consumed

• controlling characteristics of the energy supplied.

[0017] In another aspect of embodiments described herein there is provided an energy distribution network and/or a method adapted to distribute energy between a source of energy supply and a consumer of energy, comprising a distribution network connecting energy supply and energy consumers; monitoring equipment adapted to determining the energy usage by the consumer over a predetermined time interval, distribution control equipment adapted to action control of the energy distribution in accordance with a pre- agreed cost by, any one or any combination of:

• controlling the consumption of energy being consumed

• controlling characteristics of the energy supplied.

[0018] In yet a further aspect of embodiments described herein there is provided a method of and/or apparatus for setting an agreed price for energy in an energy distribution network providing energy supply to an energy consumer, comprising determining the costs of energy being supplied to the consumer from the supply, determining the energy usage by the consumer over a predetermined time interval, actioning control of energy distribution in accordance with the determinations relative to a pre-agreed cost by, any one or any combination of:

• controlling the consumption of energy being consumed

• controlling characteristics of the energy supplied.

[0019] Other aspects and preferred forms are disclosed in the specification and/or defined in the appended claims, forming a part of the description of the invention.

[0020] In essence, embodiments of the present invention stem from the realization that the present invention will enable an energy retailer to configure a network architecture and method of operation with the aim of establishing“fixed consumer prices” ($/month) for a specified period, that are managed over time by reference to the movements in regulatory and non-regulatory behind-the-meter consumption data. With this in mind, the method of operation of the network will enable the energy retailer to manage the margin risks of providing a fixed dollars per month consumer price. Changes in consumption will not trigger price variations or alter the term of the contract.

[0021] It is the energy retailers responsibility and therefore it's risk to ensure performance of the decentralised equipment, such as management of elements of the network in the customer site and on the supply side of the network. Preferably, management is a real-time communication and/or interaction between the customer site and the supply side of the network.

[0022] Energy may comprise any form of energy or any combination of energy and/or supply.

[0023] Control of appliance(s) and / or device(s) at a site includes control in accordance with regulations, consumer control and / or retailer, energy supplier control.

[0024] Advantages provided by the present invention comprise the following:

• Point of Inflection (Pol) for solar storage provides 2^nd and 3^rd tier retailers with an alternative behind-the-meter generation resource (not owned by oligopoly Gentailers); reducing wholesale price exposure and with an excess of onsite production, export to the grid and a distributed wholesale price hedge to cover any residual grid price exposure;

• Enables consumer electricity price to be fixed ($/month) for relatively long periods of time.

• Provides a fixed price for energy for a certain time independent of appliance consumption;

• Enables a fixed price for energy for a certain time for particular appliance(s) and/or device(s) in conjunction with a contract for energy supply; • Electricity supply will be more affordable, optimised and individualised to specific customer needs;

• Monitoring, regulation and or control of relatively high energy devices and equipment, collectively or more preferably on an individual basis, at a customer site, such as, without limitation, pool pumps, air conditioners, hot water, heaters to limit or control energy usage at times of relatively high or high price demand for energy.

• Non-regulatory site monitoring data, collected will enable: o Identification of energy efficiency project upgrades for supply and installation (including Energy Efficiency Opportunities (EEO) scheme projects, that may exist, for example, Victoria and New South Wales); o Optimal solar storage design, supply and installation; o Software development of customer designed business KPI reports, using energy monitoring data; o Management of customer’s ongoing fixed price, across sequential fixed price contract periods;

• The present invention enables a retailer to offer consumer customised, individualised and optimised electricity prices, based on consumer’s actual consumption data,

[0025] Further scope of applicability of embodiments of the present invention will become apparent from the detailed description given hereinafter. However, it should be understood that the detailed description and specific examples, while indicating preferred embodiments of the invention, are given by way of illustration only, since various changes and modifications within the spirit and scope of the disclosure herein will become apparent to those skilled in the art from this detailed description. BRIEF DESCRIPTION OF THE DRAWINGS

[0026] Further disclosure, objects, advantages and aspects of preferred and other embodiments of the present application may be better understood by those skilled in the relevant art by reference to the following description of embodiments taken in conjunction with the accompanying drawings, which are given by way of illustration only, and thus are not limitative of the disclosure herein, and in which:

FIG. 1 illustrates one embodiment of the present invention;

FIG. 2 illustrates a method according to an embodiment of the present invention;

FIG. 3 illustrates another embodiment of the present invention;

FIG. 4 illustrates another method according to an embodiment of the present invention;

FIG. 5 illustrates yet another method according to an embodiment of the present invention,

FIG. 6 illustrates a process to calculate a fixed price in accordance with an aspect of an embodiment of the present invention, and

FIG 7 illustrates a process to analyse retail margin drift in accordance with an aspect of an embodiment of the present invention.

DETAILED DESCRIPTION

[0027] For purposes of description herein, the terms “upper,” “lower,” “right,” “left,” “rear,” “front,” “vertical,” “horizontal,” “interior,” “exterior,” and derivatives thereof shall relate to the invention as oriented in FIG. 1 . However, it is to be understood that the invention may assume various alternative orientations, except where expressly specified to the contrary. It is also to be understood that the specific devices and processes illustrated in the attached drawing, and described in the following specification are simply exemplary embodiments of the inventive concepts defined in the appended claims. Hence, specific dimensions and other physical characteristics relating to the embodiments disclosed herein are not to be considered as limiting, unless the claims expressly state otherwise. Additionally, unless otherwise specified, it is to be understood that discussion of a particular feature of component extending in or along a given direction or the like does not mean that the feature or component follows a straight line or axis in such a direction or that it only extends in such direction or on such a plane without other directional components or deviations, unless otherwise specified.

[0028] The present invention will enable an energy retailer to establish a network architecture and method of operation with the aim of establishing“fixed consumer prices” ($/month), that are managed over sequential fixed term contract periods by reference to the movements in regulatory and non-regulatory behind-the-meter consumption data.

[0029] In one embodiment, the present invention provides monitoring, regulation and or control of relatively high energy devices and equipment, collectively or more preferably on an individual basis, at a customer site, such as pool pumps, air conditioners, hot water, heaters to limit or control energy usage at times of relatively high or high price demand for energy. It is also envisaged that the contract term and/or price may be provided for each or specific individual devices or equipment, in additional to or as a part of an overall energy contract to a customer. For example, a specific contract may be provided for energy for a customer pool pump as a part of or in additional to the customer energy contract. Monitoring, control and/or regulation of energy to that pool pump can then be at the discretion of or variation by the energy supplier in order to provide the customers energy contract term and/ or fixed price.

[0030] A consumer, without limitation, may comprise any one or any combination of:

• a customer or customers at a physical location, an energy meter, an energy consumer having multiple locations and/or meters [0031 ] With this in mind, Figure 1 illustrates an embodiment of the present invention which may enable the fixed price (dollars/month) to the consumer. The consumer site optimisation model A as embodied is based on a combination of a number of features.

[0032] Demand Response (1 ) provides options for the site to reduce its energy consumption. Within the Demand Response (1 ), are discretionary options (1 .1 ) that are at the discretion of the site operator/consumer. Examples of discretionary options are: Maintenance (1 .1 .1 ) indicates maintenance able to be performed on appliances to reduce site consumption. Price (1 .2.1 ) provides price signal to the site operator (e.g. Retailer) to initiate or prompt change in operator discretionary consumer controls. Non-discretionary (1 .2) provides non- discretionary options that have been pre-agreed and contractually committed to by the site operator and consumer.

[0033] Past Consumer Behaviour (2) enables the site operator to modify their behaviour in the use of the site to reduce the energy consumption. Site Based Management System (3.1 , 3.2 and 3.3) reflects equipment which is located at the site. Its primary function is to manage Appliances, De-centralised generation assets and initiate instructions from the Network Management System to secure network service outcomes.

[0034] Appliances (4) is equipment located on site which consumes energy. Fixed (4.1 ) appliances is a subset of equipment that would be sold with the site e.g. heating and cooling equipment. Plug-in appliances (4.2) are a subset of equipment which is not considered to be part of the site assets e.g. plug-in appliances, like toasters, heaters, TVs, general plug-in devices and equipment.

[0035] Tier 1 Meter (5) is an energy measurement device that meets a certain standard. Typically devices measure a range of electrical characteristics at a circuit level and transmit to a cloud-based data management service.

[0036] Consumer Price (6) reflects the cost the site operator, Retailer and consumer incurs for the supply of energy. Of this Price (6), there is a Fixed Price (6.1 ) which is calculated in part through the use of the site monitoring (Tier 1 meters(5)) and National Metering Identifier (NMI) meter data (10). Fixed contract term (6.2) is based on energy retailers assessment of the margin risks of fixing the consumers price (dollars/month) for longer periods.

[0037] Optimisation Projects (7) is a set of activities with the goal to reduce the need to consume energy from the Grid (Centralised Generation Assets). Optimisation (7) includes Building Shell (7.1 ) which is a subset of activity which relates to the thermodynamic properties of the building Shell. Improving the shell will reduce the energy required to maintain a certain temperature range (both heating and cooling). Appliances (7.2) are a subset of activity relating to energy efficiency of the equipment purchased for the site. De- centralised Generation (7.3) is a subset of activity relating to the design of the site based generation systems (e.g. Photovoltaic solar (PV) panels and batteries) required to reduce the energy consumption from the grid towards zero.

[0038] Economics (8) reflects a set of costs for the supply of centralised and de- centralised energy. The De-centralised (8.1 ) costs are to supply site located PV and batteries. Centralised (8.2) costs are to provide non-site located energy generation (provided in the form of Generation, Transmission, and Distribution costs).

[0039] Generation Assets (9) is equipment required in the provision of energy to the site. This includes Centralised (9.1 ) being non-site specific generation equipment and De- centralised (9.2) being site specific generation equipment (PV and batteries).

[0040] The NMI Meter (10) provides energy monitoring recognised by the Centralised energy management and monitoring system provider (e.g. AEMO) for the purposes of consumption and financial reconciliation with the Centralised Generation asset providers.

[0041 ] Network services (1 1 ) are a range of Centralised network services requested of the site operator to maintain the overall integrity and performance of the centralised energy network assets. These include Capacity (1 1 .1 ) being a request for a reduction in de- centralised energy consumption which will trigger an onsite demand response activity, Frequency Control Ancillary Service (FCAS) (1 1 .2) being a request for change in site frequency characteristics presented to the Centralised network assets and Voltage (1 1 .3) being a request for change in site voltage characteristics presented to the Centralised network assets. [0042] Network Management System (12) is equipment for the distribution of Network Services control signals to a local site. This can also extend to applying controls via the NMI Meter.

[0043] Predicted future Appliance Profile (13) provides an input of the risk of consumer changes in appliances at the site. For example, new or upgraded devices or equipment.

[0044] Predicted Consumer Behaviour (14) provides a measure of the risk of the possibility of the change of behaviour in terms of energy usage by the consumer at the site.

[0045] Referring to FIG. 2, a preferred method is illustrated which reflects an electricity supply method which enables a fixed price to be provided to the consumer site. The method initially comprises Gathering Data (2.1 ) which gathers site data required to build the optimisation models, for example the model illustrated in FIG. 1 . The gathering of data (2.1 ) includes Centralised Import (2.1 .1 ) - sourcing of NMI data (import and export). Sourcing of associated process for the supply of energy from Centralised Generation assets. In addition to data capture we also preferably require model of equipment and degradation of performance over time. De-centralised performance (2.1 .2) is the sourcing of data from De-centralised Generation assets (use of Tier 1 meters). Appliance performance (2.1 .3) is the sourcing of data from appliances (use of Tier 1 meters), sourcing of manufacturer equipment performance data, and/or sourcing of manufacturer and installer costs. Consumer behaviour (2.1 .4) is establish data collection regime to determine consumer behaviour and opportunities to change this behaviour. Predicted future Appliance Profile (2.1 .5) provides an input of the risk of consumer changes in appliances at the site. For example, new or upgraded devices or equipment. Predicted Consumer Behaviour (2.1.6) provides a measure of the risk of the possibility of the change of behaviour in terms of energy usage by the consumer at the site.

[0046] Build Optimisation Model (2.2) is the process of creating and maintaining a set of algorithms designed to enable the energy retailer to manage the fixed price margin risks over time and to deliver on different outcomes as per the description below. Site Productivity (2.2.1 ) models and monitors the overall performance of the site based upon a set of performance metrics e.g. minimise energy required to deliver required consumer services. Optimisation Projects (2.2.2) identifies a range of site-specific projects that would reduce overall energy consumption and reduce centralised energy consumption. Demand Response Projects (2.2.3) identifies a range of activities that could reduce site consumption. Network Response Activities (2.2.4) identifies a range of activities including responses to voltage, frequency and capacity requests.

[0047] Implementation (2.3) reflects a set of activities required to integrate the optimisation models into the local site. Energy Efficiency (2.3.1 ) is a sub-set of activity required to increase energy efficiency. Demand Response (2.3.2) is a sub-set of activity required to enable demand response activity at the local site. De-centralised Generation (2.3.3) is a sub-set of activity required to install decentralised generation assets at the local site. Consumer Price (2.3.4) is the application of a fixed price cost reflective tariff optimised for the local site.

[0048] Evaluation (2.4) is part of the process to determine whether what has been modelled and implemented is delivering on the expected outcomes. Price Alignment

(2.4.1 ) - determine price alignment using energy consumption data. Energy consumption

(2.4.2) - include actual NMI and Tier 1 monitoring equipment data into Model and compare against predictions. Carbon Abatement (2.4.3) - identify carbon use and compare against predictions. Substantially this is built from the energy consumption data.

[0049] Referring to FIG. 3, it is necessary to calculate an initial fixed price for energy consumption. FIG. 3 illustrates a network configuration and method for an initial fixed price for consumers.

[0050] A thermal and appliance assessment is done (1 ). This identifies economically attractive thermal shell energy efficiency possibilities (e.g. appliance efficiency, behavioural improvements, insulation, weather sealing, etc). It is hoped some energy efficiency can offset generation needs.

[0051 ] At the consumer site, a National Metering Identifier (NMI) regulatory meter (2) facilitates import and export of National Electricity Market (NEM) settlement. [0052] Also at the consumer site, there is a behind-the-meter solar photovoltaic (PV) panels with an inverter (3). There may also be other forms of renewable energy generator or sources, such as wind or other forms of energy. This generates onsite‘clean’ electricity at fixed/known cost for instantaneous onsite use, export to the grid or islanding. It is noted that where: a. The consumer generates equal or more energy via solar energy than is consumed on site (quantity), price is zero where consumer owns solar PV; b. The consumer generates more energy via solar energy than is consumed on site, the excess can be exported (quantity and price) and this can be measured by NMI with Australian Energy Market Operator (AEMO) settlement; and c. The consumer generates less energy via solar energy than is consumed on site, additional energy will need to be imported (quantity and price) and this can be measured by NMI with AEMO settlement.

[0053] At the consumer site, there is battery storage with inverter (4). This stores onsite generation and grid imports (using import value optimisation algorithm) for later onsite use and/or export (using export value optimisation algorithm). Algorithms include forward forecasting of wholesale prices. It is noted that where: a. The consumer generates equal or more energy via solar energy than is consumed on site (quantity), price is zero where consumer owns solar PV; b. The consumer generates more energy via solar energy than is consumed on site, the excess can be exported (quantity and price) measured by NMI with AEMO settlement; and c. The consumer generates less energy via solar energy than is consumed on site, additional energy will need to be imported (quantity and price) measured by NMI with AEMO settlement. Fixed price is further optimised via options to shift energy use using storage. [0054] Furthermore, at the consumer site, there are solar PV panels with battery storage and hybrid inverter (5). These generate onsite clean electricity at fixed/known cost for onsite use, export to the grid or islanding and stores onsite generation and grid imports (using import value optimisation algorithm) for later onsite use and/or export (using export value optimisation algorithm). It is noted that where: a. The consumer generates equal or more energy via solar energy than is consumed on site (quantity), price is zero where consumer owns solar PV; b. The consumer generates more energy via solar energy than is consumed on site, the excess can be exported to the grid (quantity and price) measured by NMI with AEMO settlement; and c. The consumer generates less energy via solar energy than is consumed on site, additional energy will need to be imported (quantity and price) measured by NMI with AEMO settlement. d. Fixed price is further optimised via options to shift energy use using storage.

[0055] Behind-the-meter non-regulatory appliance metering infrastructure (6) is also located at the consumer site. The non-regulatory site monitoring data collected will enable: a) Identification of energy efficiency project upgrades for supply and installation (including Energy Efficiency Opportunities (EEO) scheme projects, for example, Victoria and NSW); b) Optimised solar storage design, supply and installation; c) Software development of customer designed business KPI reports, using energy monitoring data; and d) Management of customer’s ongoing usage to provide fixed price, with no variation to price in contract term, to reflect customer load profile. [0056] It has been found that appliance meter data collected prior to initial price formation may result in lower price through onsite use of automated demand response, capacity control and sales to network, voltage control and sales to network, frequency control and sales to network and power factor control and sales to network.

[0057] Behind-the-meter voltage control device(s) (7) serves to reduce grid voltage behind-the-meter to a selected voltage (e.g. to 220 volts in Australia) and enables the future sale of voltage management services to network business, and potential future retail revenue stream from network businesses. Behind-the-meter voltage reductions (versus grid) will reduce the number of kWh consumed onsite, reducing the volume of imported electricity that is subject to wholesale price exposure. Network charges - Transmission Use of System (TUOS) and Distribution Use of System (DUOS) variable charges may be reduced. For the energy retailer, there is revenue collections systems for network service revenue. The retailer has other Costs also, such as transmission and distribution losses which may be reduced.

[0058] The behind-the-meter frequency control device(s) (8) allows onsite frequency control and adjustment and potential future retail revenue stream from network businesses. Behind-the-meter frequency modifications/adjustments assist with grid stabilisation voltage reductions (versus grid). (FCAS) is a NEM-specific name applied to a group of services that help maintain Australian power system at 50Hz. Contingency (or system stabilisation as they are known elsewhere) services are locally enabled at the plant equipment level and will respond to the frequency without a central command or instruction. The FCAS Contingency services are broken down into raise and lower components across a fast (6 second), slow (60 second) and Delayed (5 minute) time frame - 6 distinct service requirements and market prices for each region. The effect is that this will enable reduction of the number of kWh consumed onsite, reducing the volume of imported electricity that is subject to wholesale price; for more details http://www.wattclaritv.com.au/2017/03/lets-talk-about-fcas/.

[0059] Behind-the-meter power factor control device(s) (9) seeks to improve power factor behind-the-meter (e.g. up to 1 ). This may result in energy savings (KVAh not kWh). Distribution code requires that consumers keep onsite power factor above 0.8. Energy behind-the-meter power factor correction will reduce the number of kVAh (not kWh) consumed onsite. Network charges - TUOS and DUOS variable charges would be protected from the introduction of "kVA network billing" if onsite power factor is corrected to 1 .

[0060] Behind-the-meter kW/KVA capacity limiter device(s) (10) seeks to reduce kW/KVA grid draw and enables the future sale of capacity management services to network business. This results in energy savings (kWh/KVAh) and represents a potential future revenue stream from network businesses and AEMO. Behind-the-meter kW/KVA capacity limiter devices protect against network demand charge resets and reduces the number of kWh consumed onsite, reducing the volume of imported electricity that is subject to wholesale price exposure. Network charges - TUOS and DUOS variable charges and transmission can be reduced. Retailer - revenue collections systems for network service revenue. Retailer Other Costs - transmission and distribution losses can be reduced.

[0061 ] Behind-the-meter automated demand response control device(s) (1 1 ) enables a retailer to automatically control appliances (remotely or onsite) to reduce energy consumption in accordance with pre-set agreed contracted operating rules. Sell demand response services to AEMO and/or network businesses. Behind-the-meter automated demand response (local or remote) may reduce the number of kWh consumed onsite, reducing the volume of imported electricity that is subject to wholesale price exposure. Network charges - TUOS and DUOS variable charges will be reduced. Retailer - revenue collections systems for sales of demand response services to AEMO and network businesses. Retailer Other Costs - reduced transmission and distribution losses.

[0062] Behind-the-meter export price control device(s) with predictive wholesale price algorithm (12) seeks to maximise export revenue (KWh/KVA multiplied by wholesale spot price). This assists retail costs/energy trading and hedging and export revenue optimisation (maximise).

[0063] Behind-the-meter import price control device(s) with predictive wholesale price algorithm (13) seeks to minimise import cost to retailer/consumer (KWh/KVA multiplied by wholesale spot price). [0064] Wholesale price hedge calculation server/software (14) calculates grid export and grid import load profiles. Device 14 calculates net grid load profile to be hedged with futures contracts (i.e. base load swap, peak swap, off-peak swap, and/or cap plus working capital volatility charge), and/or direct generator hedge contract. Hedge contract cover is for period of fixed price consumer contract tenure (1 to 20 year period). Retail costs - energy trading and hedging costs.

[0065] Network price hedge calculation server/software (15) calculates grid export and grid import load profiles. Device 15 calculates net grid load profile to be hedged with by a 3rd party counterparty contract whereby floating network tariff risks are swapped for fixed ($ per month) network tariff. Hedge contract cover is for period of fixed price consumer contract tenure (1 to 20 year period). Retail costs - energy trading and hedging costs.

[0066] Environmental certificate price server/software (16) calculates grid export and grid import load profiles. Device 16 calculates net grid load profile to be hedged with by a 3rd party counterparty contract whereby floating environmental certificate price exposures (including Small-scale Renewable Energy certificates (STCs), Victorian energy efficiency certificates (VEECs), Energy Saving Certificates (ESCs) and large-scale generation certificates (LGCs)) are swapped for future fixed certificate contracts. Hedge certificate contract cover is for a period of fixed price consumer contract tenure (1 to 20 year period).

[0067] Carbon abatement and consumer footprint calculation server/software (17) calculates Scope 1 and Scope 2 carbon emissions and consumer footprint resulting: http://www.icomplisustainabilitv.com/index.php/ask-the-expert/qhq-manaqement/item/63- what-are-the-differences-between-scope-1 -2-and-3-qreenhouse-qas-emissions/63-what- are-the-differences-between-scope-1 -2-and-3-qreenhouse-qas-emissions. For retail costs determination, energy trading and hedging costs would be relevant in the event that, for instance, a cap and trade price on carbon was reintroduced in the stationary energy sector of the economy.

[0068] Algorithm/server (18) monitors any load variation and energy retailer margin drift, for Fixed price ($/month) for a specific site. [0069] Referring again to FIG. 3, it is necessary to now calculate an ongoing price management for energy consumption. FIG. 3 illustrates a network configuration and method for an ongoing price management for consumers.

[0070] The NMI regulatory meter (2) facilitates import and export NEM settlement.

[0071 ] Behind-the-meter non-regulatory appliance metering infrastructure (6) is for non-regulatory site monitoring data, and when collected will enable detailed measurement of changes to consumer's onsite consumption. This information forms part of the basis for price variation ($ per month) when fixed prices are reset at the beginning of a contract term. Changes in consumption pattern may be reconciled to the regulatory NMI meter. Change in consumption may be due to change in onsite appliance profile and /or change in consumer behaviour / practices.

[0072] Where price is monitored, margin variation algorithm/server (19) is to establish, monitor profitability per site over time. Device 19 measures energy retailer margin drift per site and customer. Aligns to contract terms and agreed process for resetting a future contract price for the customer.

[0073] Site engagement algorithm/server (19) to propose course of action with the customer. Engagement server (19) is driven in part by consumption variation. There is no price reset during the term of the customer contract.

[0074] Thermal and appliance assessment server/software (1 ) is used if new upgrade projects are implemented post initial price determination. This identifies economically attractive thermal shell energy efficiency projects (e.g. appliance efficiency, behavioural improvements, insulation, weather sealing, etc.)

[0075] Behind-the-meter solar PV panels with inverter (3) is used if the consumer is responsible for a change in the performance of the renewable energy system which generates onsite clean electricity at fixed/known cost for instantaneous onsite use, export to the grid or islanding. [0076] Battery storage with inverter (4) is used if the consumer is responsible for a change in the performance of the renewable energy system and stores onsite generation and grid imports (using import value optimisation) for later onsite use and/or export (using export value optimisation). Optimisation includes forward forecasting of wholesale prices.

[0077] Solar PV panels with battery storage and hybrid inverter ( 5) is used if the consumer is responsible for a change in the performance of the renewable energy system and generates onsite clean electricity at fixed/known cost for instantaneous onsite use, export or islanding and stores onsite generation and grid imports (using import value optimisation) for later onsite use and/or export (using export value optimisation).

[0078] Behind-the-meter voltage control device(s) (7) is used if the consumer is responsible for a change in performance of a device and serves to reduce grid voltage behind-the-meter (e.g. to 220 volts) and enables the future sale of voltage management services to network business. Results in energy savings (kWh) and potential future retail revenue stream from network businesses.

[0079] Behind-the-meter frequency control device(s) (8) is used if the consumer is responsible for a change in performance of a device and allows onsite frequency control and adjustment and potential future retail revenue stream from network businesses.

[0080] Behind-the-meter power factor control device(s) (9) is used if the consumer is responsible for a change in performance of a device and improves power factor behind- the-meter (e.g. up to 1 ). This results in energy savings (KVAh not kWh). Note: Distribution code in Australia requires that consumers keep onsite power factor above 0.8.

[0081 ] Behind-the-meter kW/KVA capacity limiter device(s) (10) is used if the consumer is responsible for a change in performance of a device and serves to reduce kW/KVA grid draw and enables the future sale of capacity management services to network business. Results in energy savings (kWh/KVAh) and represents a potential future revenue stream from network businesses and AEMO.

[0082] Behind-the-meter automated demand response control device(s) (1 1 ) is used if the consumer is responsible for a change in performance of a device and enables a retailer to automatically control appliances (remotely or onsite) to reduce energy consumption in accordance with pre-set agreed contracted operating rules and/or sell demand response services to AEMO and/or network businesses.

[0083] Behind-the-meter export price control device(s) with predictive wholesale price algorithm (12) is used if the consumer is responsible for a change in performance of a device and maximises export revenue (KWh/KVA multiplied by wholesale spot price).

[0084] Behind-the-meter import price control device(s) with predictive wholesale price algorithm (13) is used if the consumer is responsible for a change in performance of a device and minimises import cost to retailer/consumer (KWh/KVA multiplied by wholesale spot price).

[0085] Carbon abatement and consumer footprint calculation server/software (17) is used if the consumer is responsible for a change in performance of a emissions performance and calculates Scope 1 and Scope 2 carbon emissions and consumer footprint resulting: http://www.iconnplisustainabilitv.com/index.php/ask-the-expert/qhq- manaqement/item/63-what-are-the-differences-between-scope-1 -2-and-3-qreenhouse- qas-emissions/63-what-are-the-differences-between-scope-1-2-and-3-qreenhouse-qas- emissions .

[0086] FIG. 4 illustrates a method of determining an initial fixed price for a customer, using the network of the present invention. In order to obtain a fixed price 4.1 , a customer optimisation 4.2 and also a retail optimisation 4.3 must be undertaken for each customer site. It is to be noted that other numerals in FIG. 4 correspond to the same numerals in FIG 3.

[0087] A customer optimisation 4.2 includes performing an energy assessment, determining a load profile, seeking or suggesting energy optimisation and capturing billing information - all being based at the particular site to which energy is supplied (customers site). The energy supply optimisation may include, without limitation, any one or any combination of: installing solar photovoltaic panels export of customer stored or customer generated energy to the grid from the customer site battery storage other forms of on-site generation and storage voltage control device frequency control device

Kw/kVA capacity limiter device demand response control device alerts to site operator to instigate optimisation initiatives.

[0088] A retail optimisation 4.3 includes any one or any combination of: market price monitoring market price prediction export of customer stored or customer generated energy to the grid from the customer site network price hedging wholesale price hedging environmental certificates price hedging carbon abatement and carbon footprint impacts [0089] With the two optimisations 4.2 and 4.3, a fixed price ($/month) can be determined based on ((import energy cost - export energy revenue) ^* risk premium for future uncertainty) + retail cost to serve + retail profit margin

[0090] FIG. 5 illustrates a method of determining an ongoing monitoring 5.2 of the customer site usage and retail margin movement intra fixed term contract against the contracted fixed price 5.1 . It is envisaged that knowing the fixed price 5.1 , the monitoring involves monitoring changes, including any one or any combination of:

• device upgrades

• change in performance of onsite customer equipment

• market price changes

• carbon abatement or footprint changes

• load variation

• non-regulatory appliance metering

• changes in behaviour

[0091] FIG. 6 illustrates a process to calculate a fixed price in accordance with an aspect of an embodiment of the present invention. The process illustrated in Figure 6 provides an expected energy calculation based on potentially reducing actual grid consumption at the site with microgrid modelling, which encompasses a storage system and anticipated site export, together with a forecast import and/or export from the overall energy network. The price model then converts this energy calculation into a fixed price for the consumer.

[0092] FIG. 7 illustrates a process to analyse retail margin drift in accordance with an aspect of an embodiment of the present invention. The process illustrated in Figure 7 is to track the actual energy usage (KWh comparison) at a selected site, and compare that actual usage to the contracted forecasted energy usage. Any difference between the amount of forecasted energy as well as the forecasted price of energy and actual energy usage and offsets, such as export price of energy from the site, is provided by the price comparison and reported to the energy retailer.

[0093] The various devices being components of the network according to the present invention are currently available devices, known to those skilled in the art. The present invention involves a unique combination of various devices.

[0094] While this invention has been described in connection with specific embodiments thereof, it will be understood that it is capable of further modification(s). This application is intended to cover any variations uses or adaptations of the invention following in general, the principles of the invention and including such departures from the present disclosure as come within known or customary practice within the art to which the invention pertains and as may be applied to the essential features hereinbefore set forth.

[0095] As the present invention may be embodied in several forms without departing from the spirit of the essential characteristics of the invention, it should be understood that the above described embodiments are not to limit the present invention unless otherwise specified, but rather should be construed broadly within the spirit and scope of the invention as defined in the appended claims. The described embodiments are to be considered in all respects as illustrative only and not restrictive.

[0096] Various modifications and equivalent arrangements are intended to be included within the spirit and scope of the invention and appended claims. Therefore, the specific embodiments are to be understood to be illustrative of the many ways in which the principles of the present invention may be practiced. In the following claims, means-plus- function clauses are intended to cover structures as performing the defined function and not only structural equivalents, but also equivalent structures. For example, although a nail and a screw may not be structural equivalents in that a nail employs a cylindrical surface to secure wooden parts together, whereas a screw employs a helical surface to secure wooden parts together, in the environment of fastening wooden parts, a nail and a screw are equivalent structures. [0097] It should also be noted that where a flowchart is used herein to demonstrate various aspects of the invention, it should not be construed to limit the present invention to any particular logic flow or logic implementation. The described logic may be partitioned into different logic blocks (e.g., programs, modules, functions, or subroutines) without changing the overall results or otherwise departing from the true scope of the invention. Often, logic elements may be added, modified, omitted, performed in a different order, or implemented using different logic constructs (e.g., logic gates, looping primitives, conditional logic, and other logic constructs) without changing the overall results or otherwise departing from the true scope of the invention.

[0098] Various embodiments of the invention may be embodied in many different forms, including computer program logic for use with a processor (e.g., a microprocessor, microcontroller, digital signal processor, or general purpose computer and for that matter, any commercial processor may be used to implement the embodiments of the invention either as a single processor, serial or parallel set of processors in the system and, as such, examples of commercial processors include, but are not limited to Merced™, Pentium™, Pentium II™, Xeon™, Celeron™, Pentium Pro™, Efficeon™, Athlon™, AMD™ and the like), programmable logic for use with a programmable logic device (e.g., a Field Programmable Gate Array (FPGA) or other PLD), discrete components, integrated circuitry (e.g., an Application Specific Integrated Circuit (ASIC)), or any other means including any combination thereof. In an exemplary embodiment of the present invention, predominantly all of the communication between users and the server is implemented as a set of computer program instructions that is converted into a computer executable form, stored as such in a computer readable medium, and executed by a microprocessor under the control of an operating system.

[0099] Computer program logic implementing all or part of the functionality where described herein may be embodied in various forms, including a source code form, a computer executable form, and various intermediate forms (e.g., forms generated by an assembler, compiler, linker, or locator). Source code may include a series of computer program instructions implemented in any of various programming languages (e.g., an object code, an assembly language, or a high-level language such as Fortran, C, C++, JAVA, or FITML. Moreover, there are hundreds of available computer languages that may be used to implement embodiments of the invention, among the more common being Ada; Algol; APL; awk; Basic; C; C++; Conol; Delphi; Eiffel; Euphoria; Forth; Fortran; HTML; Icon; Java; Javascript; Lisp; Logo; Mathematica; MatLab; Miranda; Modula-2; Oberon; Pascal; Perl; PL/I; Prolog; Python; Rexx; SAS; Scheme; sed; Simula; Smalltalk; Snobol; SQL; Visual Basic; Visual C++; Linux and XML.) for use with various operating systems or operating environments. The source code may define and use various data structures and communication messages. The source code may be in a computer executable form (e.g., via an interpreter), or the source code may be converted (e.g., via a translator, assembler, or compiler) into a computer executable form.

[0100] The computer program may be fixed in any form (e.g., source code form, computer executable form, or an intermediate form) either permanently or transitorily in a tangible storage medium, such as a semiconductor memory device (e.g, a RAM, ROM, PROM, EEPROM, or Flash-Programmable RAM), a magnetic memory device (e.g., a diskette or fixed disk), an optical memory device (e.g., a CD-ROM or DVD-ROM), a PC card (e.g., PCMCIA card), or other memory device. The computer program may be fixed in any form in a signal that is transmittable to a computer using any of various communication technologies, including, but in no way limited to, analog technologies, digital technologies, optical technologies, wireless technologies (e.g., Bluetooth), networking technologies, and inter-networking technologies. The computer program may be distributed in any form as a removable storage medium with accompanying printed or electronic documentation (e.g., shrink wrapped software), preloaded with a computer system (e.g., on system ROM or fixed disk), or distributed from a server or electronic bulletin board over the communication system (e.g., the Internet or World Wide Web).

[0101 ] Hardware logic (including programmable logic for use with a programmable logic device) implementing all or part of the functionality where described herein may be designed using traditional manual methods, or may be designed, captured, simulated, or documented electronically using various tools, such as Computer Aided Design (CAD), a hardware description language (e.g., VHDL or AHDL), or a PLD programming language (e.g., PALASM, ABEL, or CUPL). Hardware logic may also be incorporated into display screens for implementing embodiments of the invention and which may be segmented display screens, analogue display screens, digital display screens, CRTs, LED screens, Plasma screens, liquid crystal diode screen, and the like. [0102] Programmable logic may be fixed either permanently or transitorily in a tangible storage medium, such as a semiconductor memory device (e.g., a RAM, ROM, PROM, EEPROM, or Flash-Programmable RAM), a magnetic memory device (e.g., a diskette or fixed disk), an optical memory device (e.g., a CD-ROM or DVD-ROM), or other memory device. The programmable logic may be fixed in a signal that is transmittable to a computer using any of various communication technologies, including, but in no way limited to, analog technologies, digital technologies, optical technologies, wireless technologies (e.g., Bluetooth), networking technologies, and internetworking technologies. The programmable logic may be distributed as a removable storage medium with accompanying printed or electronic documentation (e.g., shrink wrapped software), preloaded with a computer system (e.g., on system ROM or fixed disk), or distributed from a server or electronic bulletin board over the communication system (e.g., the Internet or World Wide Web).

[0103] “Comprises/comprising” and“includes/including” when used in this specification is taken to specify the presence of stated features, integers, steps or components but does not preclude the presence or addition of one or more other features, integers, steps, components or groups thereof. Thus, unless the context clearly requires otherwise, throughout the description and the claims, the words‘comprise’,‘comprising’,‘includes’, ‘including’ and the like are to be construed in an inclusive sense as opposed to an exclusive or exhaustive sense; that is to say, in the sense of“including, but not limited to”.

Claims

1. Method of distributing energy in an energy distribution network, the network comprising an energy supply and an energy consumer, the method comprising: determining the costs of energy being supplied to the consumer from the supply, determining the energy usage by the consumer over a predetermined time interval, actioning control of energy distribution in accordance with the determinations relative to a pre-agreed cost by, any one or any combination of:

• controlling the consumption of energy being consumed

• controlling characteristics of the energy supplied.

2. A method as claimed in claim 1 , wherein the control of the energy supplied, comprises any one or any combination of:

• Power factor

• Frequency

• Voltage

• Capacity

• Supply from Battery storage

• Supply from Solar panel supply

• Supply from Wind turbine supply, and/or

Supply from Other form of energy supply (e.g. Hydrogen fuel cells) • Export energy from the customer site to the grid

• Control of individual devices or equipment at customer site

• Supply of energy at an alternative, spot or market price.

3. A method as claimed in claim 1 or 2, wherein control of the consumption of energy further comprises, any one or any combination of:

• Identification of energy upgrades

• Optimised energy storage

• Optimised energy supply

• Variation of operation of energy consumption devices and / or services.

• Control of consumer behaviour through agreement of fixed contract terms

4. A method as claimed in claim 3, wherein the variation of operation is at one or more consumer sites.

5. A method as claimed in claim 2, wherein the energy supplied is provided from one or more consumer sites or independent generation sites.

6. A method as claimed in claim 1 , wherein the determining the energy usage is provided by non-regulatory appliance meter (so called tier 1 meter) which gathers predetermined data.

7. A method as claimed in any one of claims 1 to 6, wherein the consumer is:

A customer at a physical location

An energy meter • An energy consumer having multiple locations and/or meters.

8. An energy distribution network adapted to distribute energy between a source of energy supply and a consumer of energy, the network comprising: a distribution network connecting energy supply and energy consumers monitoring equipment adapted to determining the energy usage by the consumer over a predetermined time interval, distribution control equipment adapted to action control of the energy distribution in accordance with a pre-agreed cost by, any one or any combination of:

• controlling the consumption of energy being consumed

• controlling characteristics of the energy supplied.

9. A network as claimed in claim 8, wherein the control of the energy distributed, comprises any one or any combination of:

• Power factor

• Frequency

• Voltage

• Capacity

• Supply from Battery storage

• Supply from Solar panel supply

• Supply from Wind turbine supply, and / or • Supply from Other form of energy supply (e.g. hydrogen fuel cells)

• Export energy from the customer site to the grid

• Control of individual devices or equipment at customer site

• Supply of energy at an alternative, spot or market price.

10. A network as claimed in claim 8 or 9, wherein control of the consumption of energy further comprises, any one or any combination of:

• Identification of energy upgrades

• Optimised energy storage

• Optimised energy supply

• Variation of operation of energy consumption devices and/or services.

• Control of consumer behaviour through agreement of fixed contract terms

11. An energy distribution network adapted to distribute energy between a source of energy supply and a consumer of energy operated in accordance with the method as claimed in any one of claims 1 to 7.

12. A method of setting an agreed fixed price for energy in an energy distribution network providing energy supply to an energy consumer, the method comprising: determining the costs of energy being supplied to the consumer from the supply, determining the energy usage by the consumer over a predetermined time interval, actioning control of energy distribution in accordance with the determinations relative to a pre-agreed cost by, any one or any combination of: • controlling the consumption of energy being consumed

• controlling characteristics of the energy supplied.

13. Apparatus adapted to control distribution of energy in an energy distribution network, said apparatus comprising: processor means adapted to operate in accordance with a predetermined instruction set, said apparatus, in conjunction with said instruction set, being adapted to perform the method as claimed in any one of claims 1 to 7.

14. An application stored on a non-transitory medium adapted to enable control distribution of energy in an energy distribution network, said application comprising a predetermined instruction set adapted to enable a method according to any one of claims 1 to 7.