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					                                 The draft PLAN FOR GREATER ADELAIDE


                                          SUBMISSION COVER SHEET


 Please complete and submit this form with your submission and forward to:
Postal address:                                           Email: clblci.publicsubmissionssauciov.sa.qov.au
Submission on the draft Plan for Greater Adelaide
GPO Box 1815
ADELAIDE SA 5001

Deliver to:
Roma Mitchell House
Level 5, 136 North Tce, ADELAIDE
                                        Submissions Close 30 September 2009

Name:                                 Michael Davidson

Organisation (if appropriate):        Wessex Consult Pty Ltd

Principal contact:                    Michael Davidson

Position:                             Managing Director

Address:                              PO Box 329

Suburb/City:                          Belair SA 5052

Telephone:
                                  _
Mobile:

Email address:                        adiellailetallanglibew

All submissions will be available for inspection on level 5 RMH 136 North Tce Adelaide after the completion of consultation period
unless they are marked 'CONFIDENTIAL',

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                                                                                               Office Use Only

                                                                                               Objective ID:
29th September 2009

Submission on the draft Plan for Greater Adelaide
GPO Box 1815
ADELAIDE
SA 5001



Dear Sir/Madam
                          Submission on the draft Plan for Greater Adelaide

Please find below the submission by Michael Davidson, Managing Director of Wessex Consult Pty Ltd
on the Draft Plan for Adelaide (the Plan).

Wessex Consult is a consultancy, based in Adelaide, which provides advice to utilities, private
companies and Government primarily in the areas of demand response, energy efficiency,
sustainability, carbon emission mitigation.

This submission is intended to make a limited number of recommendations in a brief and succinct
fashion. As such it is neither detailed nor exhaustive.


Electricity Demand

I welcome the fact that the Plan promotes energy conservation and carbon emission mitigation. I
note with concern, however, that the impact and benefits of optimising peak demand and installed
capacity are not recognised in the document.

Currently distribution and transmission costs represent approximately 50% of a residential electricity
bill. The primary drivers for investment in electricity network reticulation are demand rather than
consumption based.

It is critical that in our future planning of our energy infrastructure we plan for the optimisation of
capacity as well as consumption.

The Plan targets 258,000 new homes. It is possible, using industry "rules of thumb" to make an
estimate of the likely level of investment necessary to provide electricity infrastructure for these
new premises.

Assuming:

        A marginal cost of providing electricity infrastructure at (a conservative) $6,000 per kVA
        After Diversity Maximum Demand (ADMD) of say 6.0kVA

Using the following formula we can determine a "ballpark" figure for the level of investment
required:

Reqd Investment = No. of Homes x ADMD x Marginal Cost

Reqd Investment = 258,000 x 6.0 x 6,000 = $9.288 Billion



                         Wessex Consult Pty Ltd PO Box 329 Belair South Australia 5052
                                             ABN 18 126 067 436
                                                                                       WESSEX
                                                                                         consuit



Given the prospective level of investment in electricity infrastructure required to fund the targetted
growth, and the likely impact that such an investment will have on domestic electricity bills, I would
strongly recommend that the South Australian Government consider the minimisation of electricity
demand as an objective of the 30 Year Plan.


Demand Side Measures

The plan does highlight some major electricity infrastructure projects that are presumably being
considered by Electranet and ETSA Utilities.

Whilst the provision of new capacity will, of course, be required to meet the proposed targets I
believe that providing South Australians with the opportunity to manage their demand will enable
the community to mitigate costs of infrastructure investment and thus relieve upward pressure on
electricity prices.

Quite simply, ADMD and peak demand are the primary drivers of electricity network asset cost.
Therefore, the South Australian Government should strongly consider including metrics and targets
that reference these parameters within the plan.

I also believe that specific policies relating to demand efficiency should be included alongside
policies that contemplate energy conservation and carbon emissions.

Fortunately, tools and measures that can be used to manage demand can also be used to manage
carbon emissions and energy usage. Further, because the cost of capacity is such a large proportion
of electricity cost, the benefits that can be accrued by avoiding investment are remarkably high.
Therefore, by adopting a cohesive approach to demand, consumption and carbon we will facilitate a
stronger financial case for conservation.


Policy

The electricity industry and Governmental policy makers are active in contemplating demand
efficiency. This is evidenced in current activities such as:

         National Smart Meter Programme
         Developments in Smart Grids
         Development of Standards for Smart Appliances (remotely controlled appliances)
         Appliance Energy Efficiency Programmes

However, it is important to note that the development, coordination and implementation of such
initiatives are by no means complete. Further, it is my belief that the current market mechanisms
alone cannot be relied upon to deliver timely and effective demand side response of the type or
magnitude necessary to materially optimise infrastructure investment.

There is an opportunity for the South Australian Government to take the lead in demand side
management nationally by replicating the remarkably successful approach taken to encouraging
investment in renewable energy in the State. Clearly this type of positive action has made SA the
Australian leader in wind and solar power generation.


                                                        e: -
Summary

I recommend that in the final Draft Plan for Adelaide the South Australian Government supplement
its present focus on energy conservation and carbon reduction with electricity demand efficiency. I
would also recommend that policies are developed and implemented such that stakeholders are
encouraged to adopt effective mechanisms for managing capacity and peak demand. These policies
should also be supported by clear and effective targets and metrics.


Yours sincerely




Michael 1 Davidson FAIE FAIM CPMgr MAICD
Managing Director
Wessex Consult Pty Ltd




                         Wessex Consult Pty Ltd PO Box 329 Belair South Australia 5052
                                             ABN 18 126 067 436

				
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