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What is an 'embedded
network'?
Electricity legislation provides for certain parties that may be
involved with certain “mini electricity networks” to become
exempt retailers and distributors for that “mini electricity
network”.
An embedded network is formalised arrangement providing
consumers within the embedded network to purchase cheaper (bulk)
electricity, and to provide an income stream for the site
owners or managers.
Who can establish an embedded
network?
Examples of customers who may benefit
by establishing an embedded network include:
• Retirement Villages
• Shopping Centres
• Educational Facilities
• Apartment Buildings
• Housing Estates
• Industrial and Commercial Estates
and Complexes
What are the
benefits?
There may be considerable benefits to owners, managers and
tenants of sites such as the ones listed above in the form of
cheaper electricity, easier management of electricity
situations, greater flexibility in electricity relationships
and opportunities to further reduce costs by introducing energy
saving measures.
Embedded Networks also minimise the impact of any future
electricity price increases.
Why consider an Embedded
Network?
Embedded networks are implemented to provide cheaper
electricity for consumers plus an annual cash surplus to
the network operator.
Embedded network at YMCA College Square complex,
Melbourne
How does an
Embedded Network operate?
Figure 3 [ NEMMCO, February 2004] below shows metering points in
a high rise embedded network.
Put simply, the bulk purchases are made at the Connection Point
with individual sales recorded at the other Metering Points.
It is an important principle that any users within the
embedded network are able to choose to purchase from the embedded
network or any other Retailer.
Embedded Networks in
Australia
Embedded Networks are relatively new to the market in some
Australian states with the legislative framework only
developed within the last few years.
The Embedded Networks concept is simple and
sound. A proven process developed over many years
internationally and utilises existing technologies.
Embedded networks can be established for
electricity, gas and water supply.
Costs
Establishment costs include professional services, regulatory
compliance, site metering and (if needed) electricity services.
The costs are paid out of the operating profit with projects
typically designed to be cash flow positive on the first day of
operation.
How can ENES
help?
The benefits of embarking on such a proposal can be significant
however there are many facets to the success of the project that
should be carefully managed if the benefits are to be realised and
optimised.
That is where the involvement of ENES can be
invaluable.
Our experience and knowledge has been gained from involvement
with numerous and diverse embedded network projects and we can
assist in all facets from initial viability studies through to
successful operation of the embedded network.
© 2005 Trans Tasman Energy
Group Pty Ltd. ABN 48 723 286 975.
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