Advisian Sustainability

Challenge
26 September 2016

www.advisian.com
1. Introduction
This document introduces the case for the ECS case challenge and has been prepared by Advisian. The
purpose of this competition is to provide students with an opportunity to collaborate in teams and apply
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their engineering studies to a real world problem. Teams will have until 11 am 1 October 2016 to
prepare a 10 minute presentation followed by a 10 minute Q&A session. All teams will be invited to
submit proposals for shortlisting by ECS and CEVSOC. Shortlisted teams will present to a panel of Advisian
staff on 4 October 2016.

The prize for the winning team will be the opportunity to present to and discuss their ideas with the wider
Advisian Sydney business including industry experts.

Teams will be judged on presentation skills and the content of their presentations.

The rest of the document describes the context and sets the problem. Teams are encouraged to refer to
the sources mentioned throughout this document and expected to undertake their own further research.

2. The New Energy Future

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There is change on the energy horizon driven by the convergence of technologies . A new energy future is
emerging which will have profound implications for businesses, because:

Businesses rely on easy and affordable access to energy resources;

Fossil fuels are inefficient but convenient; and

Energy is part of a complex ecosystem of businesses and regulatory environments.

1.1 PV Panels and Energy Storage

This change started with the photovoltaic (PV) panel. A PV panel provides a modular, simple and scalable
electricity source that gives households a measure of energy independence. Consequently, in the last 5
years or so, PV panels on Australian rooftops have become a common feature of our suburbs, so much so
that Australia has the highest per capita take-up in the world. Figure 1 illustrates the forecast growth in
Megawatts generated by rooftop PV panels by state in Australia.

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The New Energy Future the global transition, Advisian, 2016

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Figure 1 - State forecasts for Australian rooftop solar PV take-up, 2005 - 2034

One issue with PV generated electricity is the cost, which is higher than traditional energy sources,
although prices are decreasing. However, these prices include the cost of electricity transportation from
large generators to energy users and provided by electrical networks. With PV panels providing energy
generation at the location where energy is consumed, the role of electrical networks is set to evolve.

Another issue with standalone PV panels is the intermittency of the energy production, most notably at
night, compounded by the need to consume electricity almost at the time of its generation (energy
arbitrage). Energy storage could be the answer. If energy generation could be stored at times of
generation excess and consumed at times of shortfall, then energy arbitrage will become less
constraining. Energy storage cost has been the principal barrier to the implementation of these
technologies. The CSIRO and AEMC have forecast the pricing trajectory of batteries in relation to forecast
by other agencies (Figure 2).

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Calculating the Vale of Small-scale Generation to Networks, Ernst & Young, July 2015

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Figure 2 - CSIRO and AEMC projections of lithium-ion battery prices per kWh, 2018-2035

1.2 Electric Vehicles

At the heart of electric vehicles is a battery. The change from internal combustion vehicles to electric
vehicles will obviously affect vehicle fleets. It will also affect power generation and storage because cars
will become moveable batteries, with the ability to transport energy from one location to another. Vehicle
range and purchase price are the two main obstacles to the electric vehicle uptake. Tony Seba of Stanford
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University is predicting purchase price-parity of electric vehicles with traditional vehicles by 2019 . Should
this be the case, it is quite possible that electric vehicles will overtake internal combustion vehicles as the
design of choice by consumers.

1.3 The Energy Internet

Essential to the coming together of PV, energy storage and electric vehicles is the energy internet. The
energy internet will enable the communication and sharing of energy data between the sink and source of
electricity. Businesses will be able to analyse data that will inform capital and operational decisions.
Ultimately, the energy internet will allow for more optimised energy use and production.

All of these technologies are coming together at a time of global pressure to reduce carbon emissions. In
December 2015, the Conference of Parties 21 (COP 21) in Paris agreed to 0 net emissions by 2050. The
factors driving the new energy future will most likely contribute to achieving these targets.

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Future Energy Storage Trends An Assessment of the Economic Viability, Potential Uptake and Impacts
of Electrical Energy Storage on the NEM 2015-2035, CSIRO/AEMC, September 2015
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See http://tonyseba.com

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3. The Second Sydney Airport
The Australian federal government has committed to a second Sydney airport to be constructed on the
Badgerys Creek site in Western Sydney (Figure 3).

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Figure 3 - Badgerys Creek Airport location

The purpose of the airport is to:

Meet increasing demand for aviation services in the Sydney region, which existing airports cannot
accommodate; and

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Be a source for investment and jobs growth in Western Sydney .

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Western Sydney is a key component of Sydneys future , with a forecast 2% annual population growth for
the next 15 years. Areas such as the South West Priority Growth Area, Western Sydney Employment Area
and Western Sydney Priority Growth Area have been identified by the NSW Department of Planning &
Environment to influence the development of Western Sydney. The Badgerys Creek site is surrounded by
these Growth Areas and will both contribute to their growth and service these areas.

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Western Sydney Airport Draft Airport Plan, Department of Infrastructure and Regional Development,
2015
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Western Sydney Airport Environmental Impact Statement Volume 1, Department of Infrastructure
and Regional Development, 2015
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A Plan for Growing Sydney, Department of Planning & Environment, 2014

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The federal Department of Infrastructure and Regional Development (DIRD) is responsible for the delivery
of the Badgerys Creek Airport. The airport is still in planning stages with the draft Environmental Impact
Statement (EIS) and draft Airport Plan released in late 2015, which document plans for the Badgerys Creek
airport.

Development of the Badgerys Creek Airport will be staged. The first stage will feature a single runway,
terminal and relevant facilities to accommodate passengers and freight. It is expected that Stage 1 will be
operational by mid 2020s. The airport is expected to grow over time with a second runway constructed
around 2050. Stage 1 is expected to have the capacity to service 10 million passengers annually or 63,000
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flights . Forecast utility requirements for Stage 1 are listed in Table 1.
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Table 1 - Forecast utility requirements

Utility Quantity per day

Potable Water 1.6 ML per day

Non-potable and recycled water 1.8 ML per day

Wastewater 2.5ML per day

Electricity 16 MVA (maximum demand)

Gas 57,000 GJ per year

General waste 11,210 tonnes per year

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Western Sydney Airport Environmental Impact Statement Volume 1, Department of Infrastructure
and Regional Development, 2015
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Western Sydney Airport Environmental Impact Statement Volume 1, Department of Infrastructure
and Regional Development, 2015

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4. The case
A greenfield development of the size and standing of the Badgerys Creek Airport offers the opportunity
for actions that will contribute to meeting Australias contribution to the COP 21 agreements. By 2050
when the 0 net emissions targets are to be achieved, technologies such as electric vehicles, PV panels,
energy storage, the energy internet, along with others, will have matured. The planning and design of the
airport should consider these technologies, and others, in order to harness them.

How does the new energy future affect the planning, design and operation of the Badgerys Creek Airport?

In responding to this question, teams should research the interactions between the technologies
presented in this document, and others they consider suitable, with the proposed Badgerys Creek Airport.

Teams will be assessed against the following the following criteria:

the clarity of their assumptions and any sensitivity analysis undertaken;

consideration of implementation time and cost;

consideration of external factors such as government legislation and plans and other businesses;

the balance between blue sky thinking and viability of the options presented; and

the quality of their presentations.

Teams may choose to explore a single option in depth or a holistic solution.

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