The Australian Renewable Energy Agency (ARENA) announced that Australian retailers and electricity networks would have new chances to work together in the future of renewable energy to assist consumers in maximising the value of their energy resources.
The ARENA will provide SA Power, alongside AGL and Simply Energy, with $1.02 million in funding to develop and test the capability of retailer solar management offers to work in tandem with networks’ flexible connection offers to provide customers with Consumer Energy Resources with a seamless experience.
While rooftop solar is South Australia’s biggest generator, ARENA said most systems are not responsive to market signals. Simply Energy and AGL hope to change that with unique offerings that compensate customers for allowing their solar to respond to wholesale energy market pricing.
The $2.1 million project’s initial focus will be on assisting in designing the interaction between these new client offers and SA Power Networks’ Flexible Export connections for rooftop solar, which will be gradually pushed out as a standard service offering beginning in July 2023. Mixing flexible export connections with new retail market offers aims to maximise consumer participation while ensuring power flows do not exceed the network’s technical restrictions. This approach could be extended to support other “behind-the-meter” devices, such as batteries and potentially electric vehicles.
According to ARENA, if the solutions developed are successful, they could be implemented in other states in the National Electricity Market, possibly unlocking wholesale market and network benefits.
Demand and generation flexibility provides opportunities to reduce energy costs, lessen peak and minimum demand, and shift energy loads to times when renewable energy is abundant. It can be used in real-time to respond to market signals, generation shortages, or network constraints.
ARENA CEO Darren Miller stated that efficient rooftop solar management could be a long-term solution to the increasing amount of renewable energy entering the market.
“SA Power Networks’ project represents a small, but focused trial that will help inform the design of future mechanisms for the orchestration of rooftop solar PV as well as other customer-owned energy assets,” Miller said.
Miller added that this would demonstrate how Australia’s expanding solar PV capacity may be managed in a way that provides state-wide advantages by involving retail consumers from AGL Energy and Simply Energy.
“SA Power Networks has been working across the energy sector with inverter manufacturers, solar companies, energy retailers and regulators to develop a smart way (Flexible Exports) to allow even more solar on our network so that everyone can benefit from the availability of cheaper daytime energy. In the longer run, we are enthusiastic about how customers can benefit from actively participating in the energy market and assist in managing the peaks and troughs of demand. This trial is a crucial step in understanding how we can take that next step,” SA Power Networks EGM Strategy & Transformation Mark Vincent said.
AGL Chief Customer Officer Jo Egan stated that the company’s participation in the solar project would allow it to investigate how customers could be rewarded for allowing access to their solar system, allowing it to respond to market conditions with the highest shares of rooftop solar generation.
“AGL is excited to be designing future mechanisms for the orchestration of rooftop solar PV as well as other behind the meter assets. AGL believes flexible export limits for distributed energy resources will be one way to manage constraints and optimise available capacity. This will ultimately give customers new incentives and access to solutions that continue to decarbonise how we live,” Egan said.
Simply Energy Solutions General Manager Ryan Wavish stated: “Simply Energy is excited to explore this opportunity to enable home solar systems to become responsive to market signals. This innovation will enable solar customers to get even more value from their systems, while supporting the increased uptake of renewables and network efficiencies that benefit all customers.
Wavish added that the project adds to Simply Energy’s diverse portfolio of projects involving client participation in the energy transition via household solar and battery systems, electric vehicles, controlled hot water systems, and community batteries.
