Learning how electricity produced by renewable sources can be included in future grid designs is essential as the demand for and use of renewable energy technology in commercial and residential areas expands.
There is a world-growing demand to effectively integrate new energy technologies and systems as the industry shifts towards more reliance on non-network solutions like distributed renewable generating, energy storage, and smart grid technologies.
Power systems’ main responsibility is to ensure that there is always enough electricity to safely, dependably, and cost-effectively meet demand. Distribution networks, government sectors, and regulators have always needed to plan, setting up the system with resources that can always satisfy predicted demand and make the system resilient to withstand sudden changes in conditions.
The economic, technical, and regulatory challenges related to integrating distributed energy resources (DER) into Australia’s energy market system continue to be a major area of industry focus even as customers embrace cutting-edge DER products and service offerings like solar batteries and electric vehicles (EVs). At the policy and regulatory levels, there are several lines of work.
Distributed energy resources (DER) often refer to smaller generation units located on the consumer’s side of the meter.
Examples of distributed energy resources that can be installed include:
- rooftop solar photovoltaic units
- wind generating units
- battery storage
- batteries in electric vehicles used to export power back to the grid
- combined heat and power units, or tri-generation units that also utilise waste heat to provide cooling
- biomass generators are fuelled with waste gas or industrial and agricultural by-products.
- open and closed cycle gas turbines
- reciprocating engines (diesel, oil)
- hydro and mini-hydro schemes
- fuel cells.
Energy Matters has a nationwide network of trusted local installers ready to provide you with up to 3 Free Solar Quotes. Complete our quick quiz and begin your solar journey today!
Many of these technologies are not exclusively found “behind the meter”.
In place of centralised generation from power plants, distributed generation (also referred to as embedded generation or local generation) is employed when electricity is produced from renewable energy sources near the point of use.
DER units are classified according to their size (installed capacity).
Distributed Energy Integration Program (DEIP)
To maximise the value of customers’ distributed energy resources (DER) for all energy consumers, government organisations, market authorities, industry, and consumer associations have joined forces to form the Distributed Energy Integration Program (DEIP).
Access and Pricing
The Access and Pricing Work Package of the Distributed Energy Integration Program looked at how network regulations might change such that customers benefit most from distributed energy innovation.
The outcomes report summarises the opinions voiced during the 2019 consultations. It highlights areas of strong stakeholder alignment that regulators, market bodies, and government agencies might consider when implementing reforms to distributed energy access and pricing.
Interoperability Steering Committee (ISC)
To support the development and adoption of industry technical standards with a focus on interoperability capabilities to better enable the integration of DER into the Australian energy system, the ISC Working Group brings together a wide range of industry stakeholders and consumer group representatives.
The Working Group consisted of:
As distribution networks look for more spending room to assist DER integration infrastructure spending, DER has come under the AER’s inspection in evaluating distribution network expenditure determinations and access agreements. The AER started a consultation on the present expenditure assessment system in 2019 to ensure it still serves its intended purpose. Another essential area of concentration in assisting the growth of a more developed DER market is the ring-fencing of regulated network operations from contestable markets. The AER will become more crucial in guaranteeing accountability as distribution networks implement dynamic export operating envelopes by creating suitable procedures to determine export hosting capacity.
An essential step towards integrating Virtual Power Plant (VPP) in Australia’s energy markets has been made possible by AEMO’s VPP Demonstrations, which have started to test VPP access and sharing in wholesale value. To further evaluate the integration of the DER wholesale market, the optimisation of VPP with the inclusion of distribution network limits, and the delivery of local network services via DER, AEMO is also working to build a variety of future DER market trials. The distributed energy initiative of AEMO encompasses markets and frameworks, pilots and practices, operations, data and visibility, standards and protocols, engagement and collaboration.
- Australian Renewable Energy Agency (ARENA)
- Australian Energy Market Commission (AEMC)
- Australian Energy Council (AEC)
- Australian Energy Regulator (AER)
- Australian National University (ANU)
- Clean Energy Council (CEC)
- Energy Consumers Australia (ECA)
- Energy Networks Australia (ENA)
- Energy Security Board (ESB).
Now is the right time to switch to Melbourne solar energy. We recommend seeking at least 3 solar quotes to ensure that you are getting the best deal and selecting the right solar installer in Melbourne whom you can trust. With this, you can guarantee a solar system in Melbourne that meets your energy needs.
