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Introduction : Current climate and energy policies in the context of NEM
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According to Saha, (2019) NEM stands for the national electricity market, which is the biggest interconnected system of electricity all over the world. The national electricity market (NEM) supplies its services to covering around 9 million customers and approximately 40,000 km of cables and transmission lines. This is a comprehensive market through which all the retailer and generator trade electrical energy in Australia.
Renewable energy resources are those resources that generate renewable energy, their presents can be seen only in nature. Renewable energy resources have the power to continue supplying a clean source of energy that cannot be depleted at any course. There are five type of renewable energy such as solar energy, wind energy, geothermal energy, hydropower, and bioenergy. Mostly, NEM uses heat transfer technology to generate fast and clean energy within Australia (Operator, 2018). The leading supplier of OEM HRSG is Siemens Energy Heat Transfer Technology which previously work under the brand name NEM. The HRSG solutions provide a wide range of boiler designs to meet particular requirements and focus on the lowest total installed or operational costs.
This report aims to analyze and compare Australia's current climate and energy policies with G20's from the perspective of the national electricity market (NEM). The scattered Energy Resources (DER) policies and advantages are discussed in the report while addressing its power system network with the NEM framework. The Pilot Project of NEM is also considered in this study.
Advantages addressing the connection of distributed energy resources
Distributed energy resources (DER) is clear as a supplier of small-scale electricity or demand resources which is interconnected with the electric grid (as cited by Riaz, and Mancarella, 2021). DER contains a wide range of virtual and physical assets.
Policies addressing the connection of distributed energy resources
The policies that are utilized and interconnected with the DER are discussed as follows:
Cost allocation- The future DER growth prediction and hosting capacity maps are some tools that can expect the restrictions of distribution networks and add a level of inevitability to the cost to make decisions on the potential grid upgrades.
Cybersecurity Risks- The numeral devices on the distribution network are exposed to cybersecurity risks as the deployment of DER increases. Though, guidelines and standards that are specific to DER are under development. In 2019, various DER policies and practice guidelines related to cybersecurity risk were invented.
- Storage- in DER policy is stated that storage is a unique place, in that case, it acts as a generation and load. Therefore, the interconnection procedures between states for the storage needs, define both the operation modes of energy resources.
- Interconnection maturity model- This model specifies that the interconnection approach is presented at moderate to high and also at a low level of DER presentation.
Advantages of DER:
- As the energy does not deliver at a fixed cost, the DER can help to reduce, control, and manage the energy costs.
- After evaluating the energy utilization data, DER helps to reduce the consumption throughout the points to reduce Global Adjustment costs.
- Not all companies have the same needs. The DER is accessible, providing flexibility to encounter the unique needs of any company.
According to Qing, (2019) the power industry SWOT analysis delivers the breakdown of strengths, weaknesses, opportunities, and threats that the diligence is facing. This industry involves distributors or energy suppliers of nuclear, wind, natural gas, coal, solar, and electric technologies.
Strength- This includes high-performing description that need to be characteristic of areas on which this industry has a high degree of rule. The power industry’s strengths highlighted low rates of plant accidents, energy-efficient turbine technology, currently leased drilling sites, and safe nuclear waste removal.
Weakness-The power industry’s weaknesses highlights a decreasing investment in alternative energies, decreasing number of gas stations, increasing rates of work-related employee illnesses, or increasingly costly electric grids.
Opportunity- This industry’s opportunities include the seasonal enhance in the number of days of sunlight, lifted bans on off-shore drilling, newly laid natural gas pipelines, and increased tax incentives for energy-efficient automobiles.
Threats- The threats included in the power-increased public transportation options, and industry which are increasing emissions regulations, climate change, and fewer demand for oil and gas.
Comparison between Australia and G20 climate and energy policies
Talking about the current climate of Australia in comparison to the G20 countries highlighted the point that in 2020, Australia's non-governmental organizations and collaboration between 14 think tanks were aimed to encourage climate action. Australia had a poor performance in the covid-19 pandemic in comparison to the G20 countries, as more dollars were gone in the direction of the fossil fuel industry as a part of the relief packages. The performance through 100 pointers of the finance, mitigation, andclimate adaptation, noted that the per capita greenhouse emissions of Australia had decrease. Whereas, there were ranges where the country is falling at the back of other members of G20.Australia ranked 4th among the G20 member states for economic wounded due to extreme weather events.
Australia's major electricity is handled by the national electricity market (NEM). In the past few years, NEM jolted by electricity crisis events and unexpected announcements in the country. All the businesses in the nation felt the pain of electricity prices increasing from 2017 and had a recent respite of price reductions over the last year. While countries in G20 committed to supporting different energy types by at least USD 1.10 trillion. This commitment is done through amended or new policies, according to publicly available information or other official government sources.
A framework of DER into the power system network
The power system network refers to the network of millions of electronic components that are working in synchrony. The main parameter of the power system is frequency, current, power, and voltage. According to Olivella-Rosell and Villafáfila-Robles, (2018) the collective importance of the DER and its related "system integration" problems is between the most significant drivers of power system transformation (PST) globally, and various levels of the DER penetration need diverse approaches to offer required power system flexibility. Power system challenges related to the DER can be addressed over technological options and adjustments to the operational observations. Though, the core purpose of technical procedures is to address hosting issues, reliability and balances, as some of them can also rise the cost-effectiveness of the power system operation.
Feasibility, potentials, and promises through example of the pilot project of NEM
The pilot project is a term that defines the patterns of electricity consumption to generate feasibility in the NEM. As a part of the pilot project, the electricity consumption changes pattern is a Sunshine Tariff that was applied from 1 April to 30th September 2016. Throughout this period, consumers who signed up for the program were paying 5p per unit of energy from 10 am to 4 pm and 18p for the rest of the day. After this, Smart meters had installed in all the properties to take part in an initiative to observe patterns of consumption. These pilot projects of the national electricity market result in mutually beneficial knowledge sharing(as cited by Azaioud, Knockaert, Vandevelde, and Desmet, 2021). The projects also allow Energinet to investigate and identify potential in conveniences or barriers in the remaining framework and rules. NEM adopt this project to provide Energinet with a valuable vision of the new developments in the energy sector of the country. As a result, the collaboration partners and Energinet can work together to generate a future energy system that is 100 percent green that ensures the maintenance of the supply of security in a manner that is more efficient for society as a whole. In general, the pilot projects focus on the potential for flexibility in an existing electrical system and the market as well as the stages mandatory for the demand side responses to come into play at a proper level.
From the above-mentioned report, it is concluded that the habit of securing energy is most important in human life otherwise it brings a high cost of electricity for an individual. The national electricity market (NEM) regulatory body who is liable to supply electricity to the major parts of the countries provides useful and beneficial guidelines and policies on electricity services. NEM conducts various renewable energy resource operations to provide a healthy supply to the customers as well as to generate electricity safely. It is also concluded that Distributed energy resources are also an interconnected small-scale grid of electricity. Based on the above report it is also considered that Australia has good climate and energy policies in comparison with the G20 countries. In summary, the SWOT analysis of NEM explores the various opportunities for the national electricity market in various countries of the world. The pilot project of NEM gives the feasibility, and potential of the national electricity market in the energy industry.
Azaioud, H., Knockaert, J., Vandevelde, L., &Desmet, J. (2021). RE/SOURCED PILOT PROJECT: DESIGN AND POWER FLOWANALYSIS OF A LVDC BACKBONE WITH HYBRID ENERGY SYSTEM.
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Olivella-Rosell, P., Bullich-Massagué, E., Aragüés-Peñalba, M., Sumper, A., Ottesen, S. Ø., Vidal-Clos, J. A., &Villafáfila-Robles, R. (2018). Optimization problem for meeting distribution system operator requests in local flexibility markets with distributed energy resources. Applied energy, 210, 881-895.
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Riaz, S., &Mancarella, P. (2021). Modelling and characterisation of flexibility from distributed energy resources. IEEE Transactions on Power Systems, 37(1), 38-50.