Karit News
A place to read about Karit Virtual Power Plant News, learn about energy solutions, and read about energy industry news.
Speed Up EV Transition in Australia
In the Media
In this article by The Guardian, Karit’s Brett Milne comments on the slow adoption of electric vehicles in Australia and the need for more states to introduce a ban on the sale of petrol and diesel cars.
Decarbonising Heavy Industry
Pressure is mounting on carbon intensive industries as Australian businesses work towards net zero goals. This comes as no surprise as the industry sector accounts for 44 per cent of Australia’s total emissions; five supply chains contribute an estimated 25 per cent. But finger pointing is unproductive and pointless, coordinated action is what’s needed. Everyone has a role to play. At Karit, we’re helping heavy industry to plan for the energy transition and maximise investments in distributed energy resources.
A recent report shows that emissions from major heavy industry supply chains in Australia could be reduced by 92 per cent by 2050 without offsets. The report highlights the pivotal role that renewable energy technologies play in facilitating the rapid decarbonisation of these industries.
The Australian Industry Energy Transitions Initiative (ETI) recently released a blueprint for a whole of economy approach to decarbonising five of Australia’s major industrial supply chains including steel, aluminium, liquified natural gas, selected metals and chemicals. This three-year initiative was produced in collaboration with companies that represent around a fifth of Australia’s industrial emissions.
The report shows that Australia’s top emitting industries could cut direct greenhouse gas emissions by 92 per cent by 2050 if backed by coordinated action with industry, finance and government support.
As outlined in the report, to enable heavy industry to transition to net zero emissions consistent with global efforts to limit warming to 1.5ºC, Australia will need to:
- Set a strong, clear, enduring framework with a net zero emissions goal to align industry, finance and government
- Transition to the large-scale, cost-competitive, renewable energy system of the future
- Accelerate development and demonstration of the emerging technologies needed
- Drive deployment of low-carbon solutions, reduce barriers and support investment towards the transition
- Develop integrated net zero emissions industrial regions, supply chains and energy network solutions.
Renewable energy is a ‘critical enabler’
Renewable energy and technologies have a pivotal role to play in facilitating the rapid decarbonisation of heavy industry supply chains. A significant transformation of the current energy system is urgently needed.
The report identifies a ‘Coordinated action scenario’, in which 600TWh/yr of electricity could be needed by 2050. This would require a 2-fold increase in Australia’s total current electricity generation and 260GW of renewable capacity.
Source: Energy Transitions Initiative
Source: Energy Transitions Initiative
By implementing a well-planned transition to renewable energy sources, Australia can maintain a reliable energy system and retain its competitive edge globally.
Karit’s Brett Milne says that Karit is well positioned to help heavy industry meet the challenge of thriving in a decarbonised global economy.
“We’re committed to helping energy-intensive industries to build a sustainable energy future. Our extensive experience, technology and technical support gives our clients a competitive advantage.”
Energy transformation with Karit
Karit is proud to be one of the clean energy advisory and technology companies driving innovation in the energy sector.
We follow a proven process in delivering our advisory services to ensure that our clients have an energy strategy with clear actions and solutions, designed to successfully reduce their emissions, cut energy costs, and maximise investments. Our work is informed by advanced modelling tools including renewable energy forecasts, which help distributed energy asset owners to make informed decisions about energy planning, scheduling, trading and optimisation.
Our experienced team of energy professionals can help with the development of business cases, investment proposals and facilitate key stakeholder engagement. We also provide support when engaging with hardware and asset vendors to ensure the best possible solution is delivered.
Once an organisation has established its energy strategy, we offer a range of operating models to maximise the value of their investments.
Why Karit Advisory Services make sense for large industrial customers
Many large organisations operate multiple facilities located in different geographic locations. These properties are subject to a variety of tariffs and commercial arrangements from a range of Electricity Retailers and Infrastructure providers.
Karit examines the total energy (electricity) footprint of a business to develop an optimal energy transition strategy. The strategy considers the addition of renewable energy sources into their ideal operating model.
If appropriate, Karit will design a Virtual Power Plant (VPP) that provides organisations the option of connecting solar panels, other sources of renewable generation and storage systems to all, or a selection of their sites, in order to reduce energy costs and carbon footprint across their overall portfolio.
The Karit platform has the capability to support site specific configurations of renewable energy solutions, optimising the energy efficiency at the site. In addition, any excess generation can potentially be used to offset the cost of energy at other locations.
Implementation of distributed energy technologies can result in significant savings for an organisation and provide enhanced environmental credentials.
Looking for a renewable energy partner?
If you would like to find out more about how we can help you to develop your energy strategy and maximise your renewable energy investments using renewable energy forecasting and technology please get in touch. We’re here to help. Contact Karit and speak to one of our energy experts today.
Why Australia’s Energy Market is in Crisis
The Australian energy market is broken and the structure of the market enables market manipulation which means the energy consumer is screwed.
Within the market there are four key participants – Generators, Networks, Retailers and Customers. The market rules have enabled the creation of large vertically integrated generation organisations that hedge their investment by owning large customer books. This operating model effectively offsets any risk these organisations have from market volatility (that we are currently witnessing). The market has also removed all price risk from the network businesses by implementing structures that almost guarantee them an income regardless of what happens in the rest of the industry.
Interestingly in recent weeks there has been no buzz about large retailers facing doomsday outcomes from the volatile market. While dozens of small retailers, who are fully exposed to the wholesale energy market are heading towards administration. Amazingly in an attempt to stave off financial collapse many of these small retailers are actively contacting their customers encouraging them to churn to one of the large retailers. Many will argue that these small retailers should have put strategies in place to offset their risk, however the large retailer owned generators are the ones who make the necessary financial products available in the market and have significant influence over the price of these market instruments.
Meanwhile customers who have invested in solar PV and batteries are largely gamed by the market which sets a feed in price for the energy (currently market offers typically sit in a range of $40-$80 a megawatt hour) that is not adequately linked to the wholesale market price. With the wholesale market operating well above the fixed price feed in level in recent months consumers have been forgoing up to $150 a megawatt hour. So while competing generators access incredible $/mWh prices these investors are frozen out of the market.
And let’s not forget our network friends, who instead of working out ways to make smart investments to enable more renewables into the low voltage parts of our grid, are dreaming up ways to limit the economic return of distributed energy generation by introducing complex mechanisms like Dynamic Operating Envelopes and other capacity limiting mechanisms restricting the amount of renewables.
The solution
To move towards a net zero future we need to electrify everything, whilst also transitioning away from hydrocarbon based power generation. This means that we will need to deliver renewable generation capacity somewhere between 200% and 500% of current generation capacity depending on which model and which commentator is making the claim. Regardless of the scale of the renewable build out, it will certainly be a generation and storage fleet of much greater capacity than that operating in Australia today.
As we create our future energy infrastructure we have the opportunity to change the market model and establish more effective boundaries for market participants so that the risk and reward is more evenly shared and innovation of technologies and business models are encouraged and able to flourish. We should not assume that the market structure that exists today will be relevant in the net zero energy market of the future. We need a 50 year view of that market so as we adapt the market transitions with technology and the new business models that arise.
How Virtual Power Plants Use AI for Smarter Energy Forecasting & Management
Australia’s energy landscape is rapidly changing. In fact, we now have more solar per capita than anywhere else in the world. With the uptake of solar, battery storage and other distributed energy assets increasing there is a need to do things differently. Virtual Power Plants are one of the key technologies in the new energy paradigm.
Intelligent virtual power plants such as Karit’s are transforming renewable energy forecasting, management and optimisation with machine learning. In this article, we’ll define machine learning and renewable energy forecasting, show you a few examples of how we use it in our Karit Virtual Power Plant platform, and explain how your business can benefit.
More than 3 million rooftop solar systems are now installed on homes and businesses across Australia. According to GlobalData, solar installations are expected to grow four-fold by 2030 and reach a capacity of 80.22GW.
This influx of solar, along with batteries and other distributed energy assets, has meant that we need to take a fresh approach to how energy is managed. The old system that was built for one-way energy flows and centralised generation is no longer sustainable, can’t cope with two-way energy flows and won’t meet changing societal expectations. Technological advancements in cloud-based software, internet of things (IoT) applications, artificial intelligence and virtual power plants are enabling this change.
When you connect to a virtual power plant you can boost the effectiveness of your solar and other distributed energy assets. Virtual power plants that use artificial intelligence come into their own as they deliver the greatest benefits for communities, businesses, and energy retailers alike.
Essentially, a virtual power plant (VPP) is a network of decentralised and distributed energy assets that are managed and optimised by a central control platform. It means that energy assets, like solar, batteries and electric vehicles, can be orchestrated across different locations and work together like a power plant.
The global VPP market is growing significantly year on year which is great news for the rapid decarbonisation of our planet. However, it’s important to note that not all VPPs are created equal. Some VPPs simply use an IoT communications device to control inverters and batteries to manage peak demand. That’s it. On the other end of the spectrum, more sophisticated VPPs use software informed by machine learning to carry out forecasts and efficiently manage and optimise the VPP in real-time.
What is Machine Learning?
A subset of artificial intelligence (AI), machine learning allows a computer system or machine to learn from past data so that they deliver accurate results.
So, how does a VPP use machine learning? To illustrate the point, let’s take a look inside the control room, the brain as you will, of our Karit Virtual Power Plant.
Our Karit VPP is a cloud based command and control platform that connects with specifically designed energy management devices, we call Karit Cakes. These devices collect energy and asset data and enable commands to be sent between the distributed energy assets and the control centre platform.
The VPP’s control centre platform is integrated with real-time weather and energy market data. This provides a framework for the intelligent management of energy flows and VPP performance.
Our Karit VPP uses sophisticated data modelling and machine learning to interpret grid, demand, market, weather and asset performance data to drive automated responses to changes in the operating environment of the customer.
So what is the benefit of machine learning?
When VPPs use machine learning in the renewable energy forecasting process it leads to more accurate, efficient and timely predictions and responsiveness. This ultimately helps you to achieve your goals: whether you’re looking to reduce costs, manage demand, make money and/or demonstrate your environmental responsibility.
Before we look at how VPPs use renewable energy forecasting, let’s take a moment to explain the concept.
What is Renewable Energy Forecasting?
Renewable energy forecasting is a calculation or prediction of the amount of renewable energy that will be generated and consumed in the foreseeable future. This forecast is based on weather and performance monitors, market predictions and other predetermined factors.
The great thing about machine learning is that it means that forecasting can be completed in a matter of seconds rather than days. It also gives VPPs the ability to respond in real-time to electricity supply and demand needs as well as being able to optimise energy use, assets and storage.
Renewable energy forecasts are used to help distributed energy asset owners to make informed decisions about energy planning, scheduling, trading and optimisation.
How do Virtual Power Plants Use AI in Forecasting?
With recent advancements in machine learning, software systems can learn patterns from historical data and produce accurate forecasting numbers for the future.
At Karit, we have leading data scientists and analysts delving deep into the insights, building, testing and refining the forecasting models.
Phuong Tang – Data Scientist, Karit
There are a number of different forecasts that we generate and use including generation, demand, market and optimisation forecasts.
Generation forecasts
Accurate renewable energy generation forecasts help to improve the planning and operation of solar PV systems, which leads to economic advantages for energy retailers and businesses.
Forecasting can be undertaken with different time horizons: short, medium and long term.
For example, we focus on short-term forecasting which involves forecasting from a few minutes to a few days ahead when the weather forecast is most accurate. The weather is an important factor in energy forecasts, as weather changes significantly impact the renewable power generated. For instance, the solar radiation, the position of the cloud, the array azimuth — that’s the angle your solar panels are facing — as well as array tilt, play a big part in the fluctuations of the solar generation. These considerations are included in our forecast models.
We’ve tested lots of different sources of weather data to give you the best results. Our Karit VPP platform has continuous access to the world’s highest resolution weather, ocean, environment, and climate data. So you get the best predictions possible.
Demand forecasting
Power demand forecasts provide the key information needed to make decisions about electricity planning and trading. These forecasts are essential to the energy industry and must be accurate.
At Karit, we’ve undertaken extensive research to analyse historical energy consumption data from individual households as well as commercial buildings. This has helped us to explore and find the most important variables that contribute to the energy consumption forecast accuracy.
We rely on two types of demand forecasting. Mid-term forecasting (one month ahead) is used in planning the monthly demand charge, while short-term forecasting (2 days ahead) is mostly used for scheduling and controlling execution for peak shaving, helping to level out demand. Given that there are different market types, for example 30-minute and 5-minute markets, we adjust the forecast intervals to meet the market needs.
Market forecasting
You can improve your earning potential with market forecasting. The most common revenue for a VPP is to sell your power by discharging batteries at times of high demand when the price is high and renewable energy forecasting helps us to predict when the peak happens.
Optimisation forecasts
When you optimise the use and cost of energy it can lead to significant economic gains, not to mention a better outcome for the planet. We use machine learning to generate forecasts that are used to optimise a combination of energy sources, loads and storage devices to help you achieve the greatest economic benefit for you. This takes into consideration electrical load, solar generation, electricity wholesale market price, battery optimisation and capacity forecasts.
As we’ve mentioned, not all VPPs are created equal. It’s important to note that they don’t all incorporate AI-informed forecasts and modelling.
If you’re searching for a VPP partner it’s important to consider what your goals are and whether or not they offer real time data, performance monitors, market predictions and support.
Benefits for Karit Customers
By connecting to a VPP informed by machine learning, Karit customers can access more accurate renewable energy forecasts and enjoy the following benefits:
- Reduce your business operating costs
- Improve your energy efficiency
- Increase your earnings
- Improve demand management
- Optimise your distributed energy assets
You can also access our insights in a user-friendly dashboard so you have all the information you need at your fingertips to take control of your energy management. You can set parameters, triggers and respond to market conditions. Rest assured that you’ll also have the support of our experienced team to help you.
AI will be increasingly relied upon as the world transitions to renewable energy with more and more dispersed energy assets and decentralised grids.
VPPs that are supported by energy management software that uses machine learning for forecasts, like Karit’s VPP platform, will deliver significant opportunities and benefits for communities, Councils and businesses.
Looking for a VPP partner?
Wondering how your business can benefit from the smarts behind our leading energy management platform? If you would like to find out more about how we can help you to maximise your renewable energy investments using renewable energy forecasting please get in touch. We’re here to help. Contact Karit and speak to one of our experts today.
Top Benefits of Investing in Solar Power for Business
Whether you’re driven by your bottom line, climate action, your customers’ values, or a combination of these, solar can help you to gain a competitive edge. This article explores the key benefits of investing in solar and why it’s an important consideration for your business this year.
Why is solar power good for business?
Solar is a sound investment and delivers significant economic benefits such as lower energy costs, a greener business footprint, greater independence from volatile energy markets, and contributes to the overall decarbonisation of our energy system. It’s also a great way to put underutilised assets like commercial rooftops and car park awnings to work. Solar can boost your green cred, which in turn is proven to positively impact brand reputation as well as customer and staff acquisition and retention.
Solar delivers on a business’ triple bottom line performance. Yes, solar power is proven to be good for profits, people and the planet.
Benefits of solar power for business
Choose solar and enjoy the following benefits:
- Reduce your business operating costs
- Reduce your carbon emissions
- Improve your green credentials
- Future-proof your business
1. Reduce your business operating costs
Solar makes financial sense. For most businesses, large or small, electricity is a significant component of total operating costs. You can lower your energy costs by generating and using your own electricity during daylight hours. This is suitable for the majority of businesses that can align daytime operations with solar generation.
If you’re a small business owner, the concept of using solar energy for your business may appear to be a risky or an expensive proposition. However the fact is, if your business can afford to pay its electricity bills, it can afford the cost of commercial solar power.
You’ll find that you can recoup your costs over time. In fact, in nearly all cases an investment in solar energy will generate quick payback and long-term savings. Businesses that are heavy users of grid power will benefit most from solar panels.
You might also be eligible for solar rebates. Australia’s federal and state governments continue to offer substantial financial incentives which will help to offset the cost of your business’ energy transition.
2. Reduce your carbon emissions
As identified by the The Intergovernmental Panel on Climate Change, deep emissions cuts are needed in order to avert climate change catastrophe.
When you move away from fossil fuels to solar you’ll reduce your carbon emissions.
You’ll be helping the planet and future generations by adopting solar energy.
In Australia, the electricity sector is the largest contributor to the country’s carbon footprint. For example, on the Gold Coast, where Karit’s Australian headquarters is based, the electricity consumption of our Commercial and Industrial sector accounts for 45% of the city’s carbon footprint. Your business has an opportunity to be a catalyst for change simply by going solar.
3. Improve your green credentials
When you invest in solar you can improve your green credentials, the benefits of which can be far-reaching.
Strong green credentials will help you to demonstrate that your business is committed to the environment. You might also choose to apply for third-party certification programs and awards to provide independent verification of your green status. Green credentials can boost your brand reputation.
According to research by the Australia Institute, 75% of Australians are concerned about climate change. People who are interested in the environment will look at your sustainability credentials when making decisions. This can be an important consideration when you are looking to recruit and retain staff and position your business as an employer of choice.
Green credentials can also have a positive impact on customer acquisition and loyalty. Consumers who care about climate action will prioritise your business over others who don’t use renewable energy in their operations.
You’ll find that more and more businesses and governments are adopting sustainable procurement practices which place greater weight on green credentials. Consequently an investment in solar can help you to gain a competitive advantage when you tender for business.
4. Future-proof your business
You can gain energy independence and future proof your business when you invest in solar. It’s a reliable and sustainable source of renewable energy.
Solar power will protect your business against the rise and volatility of grid electricity prices or changing utility rates.
If you already use another renewable source, diversifying into solar will help in times when the other source isn’t generating enough power. For example, many New Zealand based businesses that rely on hydro can use solar when hydro inflows are low.
Once installed, solar panels will provide electricity quietly, cleanly and affordably for 25 to 40 years.
Building owners also benefit as solar systems add to the resale value of assets and allow them to access new sources of income by on-selling the energy to their tenants. Solar will also help owners to attract and retain tenants.
Tenants can benefit from solar too
It’s important to note that even if you don’t own your own premises you can access the benefits of solar too. The caveat of course is that you will need to convince your landlord to invest in solar or move to premises where you can access solar. It’s a win-win for tenants and property owners.
Boost your solar investment and gain greater control
You can boost the effectiveness of your solar by connecting to a Karit Virtual Power Plant (VPP).
A Karit VPP allows you to bring all your distributed energy assets together with other organisations into a single system. When connected to a Karit VPP businesses and communities can store, share and sell the solar power that they’ve generated.
When you connect to a Karit VPP you will gain greater control over your energy management and costs. Karit’s technology can help with the assessment of the performance of solar panels too.
Is solar power right for your business?
Still wondering if solar is right for your business or how to get started? Solar delivers multiple benefits that are worth exploring. Investing in solar will lower your operating costs, reduce your business’ carbon footprint, and future-proof your business. Now that’s good for business.
Of course, it’s important that you make an informed choice. We can help you to make the right decisions about solar and your future energy management needs.
Contact Karit and speak to one of our experts today.
Karit’s Clean Energy Technology Catalyst For Change
Just days before COP26, Australia’s federal Government has finally released a plan to reach net zero emissions by 2050. With a focus on technology, the plan identifies ‘ultra-low cost’ solar and energy storage as key components in reducing emissions.
Karit is proud to be one of the clean energy technology companies driving innovation in the energy sector and would like to see a full grid strategy to transition to 100 per cent renewables by 2030.
Karit’s Bruce Emson said that Karit was born out of frustration with the current energy system and a desire to do better, ultimately making affordable clean energy accessible for everyone world-wide.
“Virtual power plants are one of the technological advancements that are essential to the rapid decarbonisation of the grid,” Emson said.
“We’ve developed a smart energy management platform that gives businesses and households the ability to share the clean energy that they’ve generated and stored with other premises.
“Karit’s Virtual Power Plant creates a circular economy for sunlight, where other people can benefit – even after the sun goes down.
“We have the technology, insights and experience to help businesses and communities generate, store, share, and sell renewable energy effectively and efficiently.
“Our special sauce is our people and technology. We have the brightest minds developing our software and hardware, analysing energy consumption data and modelling scenarios, so that we can deliver the best solution for our customers.
“Our team includes experts in energy, science, engineering, maths, technology and customer experience. I’m grateful for their dedication and innovative thinking.
“We’re here to facilitate change in the way energy is managed. But in order to bring about this rapid change in the energy sector we need a full grid transition strategy – not just a piece-meal approach. This plan needs to be developed in collaboration with the whole energy industry.”
ENDS
Media enquiries:
Georgie O’Connor – georgie [at] karit.com.au
All words in quotes attributable to Bruce Emson, CO-FOUNDER & EXECUTIVE DIRECTOR Karit
