CitiPower's Eco-Power and the market:
Comment from the Alternative Technology Association.

The Alternative Technology Association's exported energy from 
the Breamlea wind generator is a significant input to the pilot 
stage of CitiPower's soon-to-be-announced Eco-Power product. 
Recent communication from the Dept of Agriculture, Minerals & 
Energy Victoria indicates that PowerCor will not be entitled to 
levy "wheeling charges" for energy traded between Breamlea and 
CitiPower. The physical electrical energy from Breamlea is in fact 
saving PowerCor each half hour an amount equal to the 
prevailing SMP times the Breamlea energy exported during that 
half hour (plus the cost of their transmission losses: 4.76%).

The ATA is currently measuring and recording its energy output 
half hourly and has in place the data analysis tools which allow it 
to accurately quantify  (with the help of VPX SMP data) the 
savings PowerCor is making as a result of the Breamlea wind 
generator energy export.

For a wind energy producer of this size, and for the sums of 
money involved, this may be seen as a petty and irritating 
exercise. However the ATA members involved are committing 
considerable voluntary time and effort NOT to squeeze a few 
extra dollars of income for a financially strapped community 
group, but to put in place, in collaboration with interested 
industry participants the groundwork for the development of a 
significant windpower industry as a part of the Victorian energy 
mix.

Our position therefore is that any DistCo with embedded wind 
power (of any size) should acknowledge the real benefits of such 
wind energy. In our case this would mean PowerCor paying for 
what they are currently getting for free. The appropriate amount is 
in our opinion the market value -viz. the sum of all the half hourly 
amounts as calculated above, paid at appropriate intervals (say 
monthly or quarterly). We understand that if the Office of the 
Regulator-General and the policy makers in Minerals & Energy 
Victoria confirm this as the truly equitable approach, then 
CitiPower would pay the ATA the full amount of 8 cents/kWh for 
Breamlea energy, and invoice PowerCor for the market value of 
that energy.


			     M Gunter         16/9/1995
			     Breamlea Operations Group
			     Alternative Technology Association