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Powering ahead on smart grids

Chris JenkinsDigital editor, business

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Moves to bring Australia's power distribution networks into the 21st century are gathering pace, with utilities in Queensland and South Australia outlining plans to spend close to $400 million over the next five years on "smart grid" systems. The plans from Queensland's Energex and Ergon, as well as South Australia's ETSA, were revealed in submissions to industry overseer the Australian Energy Regulator last week. Determinations made by the AER will run from 2010 to 2015. For the Queensland utilities, the smart grid and demand management spending plans come against a background of rapidly escalating consumption of power, fuelled by a voracious appetite for air-conditioners. Energex chief executive Terry Effeney said peak electricity demand in south-east Queensland would grow by 71 per cent in the next decade. But much of the extra capacity to cater for that demand would be required only a few days a year, he said. Energex proposed spending $127 million on demand management initiatives and smart grid technologies over the five years. In addition, the utility outlined plans to update old telecoms and SCADA (supervisory control and data acquisition) equipment in a program valued at $135 million. "The creation of a high-speed, two-way communications channel is the first step in developing an ICT-enabled participative and connective network," the group argues in its submission. Ergon, meanwhile, has proposed spending $25 million on the first stage of its new communications network, to be known as UbiNet. The utility has also proposed expanding the number of substations covered by its SCADA network. "Our strategy to address peak demand by leveraging climate change is supported by the development of a smart network, with significantly expanded functionality," Ergon says. Meanwhile, ETSA proposed spending $43 million on smart grid systems. Potential measures include a new network control centre, network monitoring systems and communications systems.
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Chris Jenkins is BusinessDay's digital editor, based in our Sydney newsroom. Connect with Chris on Twitter.

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    Original URL: https://www.afr.com/markets/commodities/powering-ahead-on-smart-grids-20090721-jn150