The challenge of adapting centralised electricity systems: peak demand and maladaptation in South East Queensland, Australia

Abstract

South East Queensland's (SEQ's) centralised electricity system is under great pressure to adapt. Climate change is converging with socio-economic, demographic and technological changes to create a 'perfect storm' for the region's electricity system. Distribution networks are particularly affected, with these factors contributing to tremendous peak demand growth, about double the rate of growth in average demand in recent years. This paper reviews how Australia's electricity system is adapting to multiple drivers of peak electricity demand. We use sociotechnical transitions theory to understand the temporal interconnected social and technical dimensions of adaptation in this setting. Specifically, we present an historical narrative of the emergence of centralisation in Australia and outline the peak demand problem in SEQ and review adaptation options from the international literature. We also analyse the interactions between key social groups and their adaptation responses over the past decade. Our analysis shows that adaptation has become a contested process between supply-chain actors and end-users, each with different economic objectives, adaptation needs and capacities. The resulting adaptation dynamic that is emerging shows worrying signs of maladaptation. Implications for market governance and urban policy and research are discussed.

Risks and tensions in water industry innovation: understanding adoption of decentralised water systems from a socio-technical transitions perspective

“…The notion of transitions aligns with the process theory approach to causation because human agency, social systems and technological development are seen as co-evolving through interactions between actors and events over time. It has become clear from this literature that systemic change is complex and often characterised by power struggles between actors, and unintended consequences arising from the complex interplay of actors and exogenous factors (Brown et al, 2000;Quezada et al, 2014;Smith et al, 2005). For example, Quezada et al (2014) recently demonstrated tension between endusers and supply chain actors in Australia's electricity regime, emerging from the interplay of climate change, societal attitudes toward environmental issues, technological innovation, neo-liberal economic reform and clean energy policies (and politics).…”

“…It has become clear from this literature that systemic change is complex and often characterised by power struggles between actors, and unintended consequences arising from the complex interplay of actors and exogenous factors (Brown et al, 2000;Quezada et al, 2014;Smith et al, 2005). For example, Quezada et al (2014) recently demonstrated tension between endusers and supply chain actors in Australia's electricity regime, emerging from the interplay of climate change, societal attitudes toward environmental issues, technological innovation, neo-liberal economic reform and clean energy policies (and politics). They identified evidence for transition in electricity supply from centralisation in a growing market context to partial decentralisation in a declining market, with significant risks of stranded assets for utilities and social inequity among end-users.…”

Bringing it all together: researcher dialogue to improve synthesis in regional climate adaptation in South-East Queensland, Australia

“…These functional interdependencies, as Young (2002) suggests, also create political ones where improved horizontal cooperation amongst utilities, developers and regional planning authorities will be necessary to implement such a strategy. Even though incentives to manage interactions between water and energy are weak (see Quezada et al 2013), planning to avoid future joint losses in both sectors may eventually force cooperation (Young 2002). Interestingly, discussions amongst researchers at the workshops across all three suites of adaptation options presented in this paper suggest a refocus on new, intermediate levels of organisation (as illustrated in Fig.…”

“…This will add to regional energy demands. However, energy utilities and governments are concurrently proposing adaptations to reduce peak energy demand (see Quezada et al 2013). Unplanned energy failures in heat wave conditions are a major health risk in the region, and peak demand has grown twice as quickly as average energy demand growth in recent years .…”

“…between household and grid) will require novel forms of cooperation between utilities, governments and major developers (see Quezada et al 2013). However, in this regard, current actions by governments or utilities to incentivise energy or water savings at household scale are of limited efficacy.…”