Oztek

Cost Reduction through Solar and Bio-Diesel
The Challenge
The Impact
The Solution

The Challenge

Through our highly consultative and detailed analysis of Oztek Holdings operations, Acacia Energy identified the key opportunities to deploy a renewable energy solution that would reduce electricity charges for Oztek Holdings as well as generate new revenue streams for Oztek Holdings that deliver faster payback of the initial investment and ongoing electricity cost offsets.

Our analysis identified that Oztek Holdings’ high electricity charges could be substantially reduced by:

  1. Deploying a behind the meter solar system to displace grid-sourced electricity,
  2. Deploying a bio-diesel generator to mitigate critical peak demand, and
  3. Selling the output from the embedded generator into the NEM wholesale market
  4. Aggregating the demand reduction available from the embedded generator to support Slow FCAS participation.

The Solution

Using 12 months of interval meter data and electricity market data, Acacia Energy developed a detailed model of Oztek Holdings’ electricity costs.  The model demonstrated the savings available to Oztek Holdings from a variety of difference renewable energy solutions, allowing Oztek Holdings to make an informed decision on the renewable energy solution best suited to their operational and commercial needs.  The solution included:

  • A 450kW ground mount solar system comprising Yinglee solar panels, Solar Edge Solar Edge energy optimisers and inverters;
  • A JCB 545 kVA backup generator fitted with Commapp controllers and configured as an embedded generator; and
  • A new 630 AMP Main Switchboard with protection and control equipment that allows grid-synchronised genset operations.

Acacia Energy also introduced Oztek Holdings to a third-party, independent financier who provided the capital required for the project.

Oztek were already contracted for their electricity retail supply so elected to engage Acacia Energy’s Generation Services to derive ongoing value from the investment in the renewable energy solution for 7 seven years from commissioning.

Under the Generation Services agreement Acacia Energy will use its cloud based OBE software to autonomously monitor and control the renewable energy solution to achieve the lowest cost of energy in every (5 minute) trading interval in the National Electricity Market.  This optimisation takes into consideration the cost of purchasing energy from the grid, the cost of critical peak demand, the energy available from the solar array, the revenue that can be achieved by running the generator and from providing FCAS services.   The combination of grid energy displacement and new revenue streams delivers a total electricity cost reduction of 75%.

The Impact

Acacia Energy’s renewable solution has impacted Oztek Holdings business processes in a number of key ways.

  • Oztek Holdings electricity spend over 10 years will reduce by 2 million dollars
  • The revenue streams created by Acacia Energy running Oztek’s biofuel generator will reduce their capital investment payback period to 3.3 years
  • Continue to provide new revenue streams after initial payback period that will continue to offset electricity spend