Project EDGE has showcased how virtual power plants (VPP) can provide electricity and services to local networks, market participants, and wholesale energy markets, unlocking greater value for all consumers, according to the Australian Energy Market Operator (AEMO).
Project EDGE is a collaboration between AEMO, Ausnet Services, and Mondo, with support from the Australian Renewable Energy Agency (ARENA). The project aims to demonstrate the efficient and scalable trade of electricity services from distributed energy resources (DER), including rooftop solar, batteries, and controllable energy devices. The trial includes Rheem, Discover Energy, and AGL as additional participants.
Over 320 residential and commercial/industrial customers participated in an 11-month trial, providing 3.5 megawatts of flexible capacity from over 400 DER devices coordinated by three different VPPs, operating according to customer preferences and sharing benefits directly.
The three-year project involved extensive technical research, market trials, and consumer consultation to develop distributed energy resources for improved electricity reliability, security, and affordability.
“AEMO is a strong advocate for enabling small-scale energy resources to participate in energy markets and reward consumers for the flexibility services they provide,” AEMO Executive General Manager System Design Violette Mouchaileh said.
Mouchaileh stated that Project EDGE proposes a method for coordinating distributed energy resources market participation to enhance electricity reliability, grid security, and affordability.
“Importantly, the findings of the three-year project will be available for industry and policy makers to consider as we transition to net zero while building power systems that benefits all consumers,” she added.
The project successfully coordinated DER operations, demonstrating technical feasibility for accelerating net-zero transition while maintaining energy security and reliability. It also demonstrated VPPs’ ability to serve local networks and AEMO wholesale markets.
“We’re excited by the positive findings from Project EDGE. ARENA is always looking for new ways to evolve the electricity grid and maximise the value of DER to the benefit of consumers and the grid,” ARENA CEO Darren Miller said.
According to Miller, the study emphasises the importance of creating a consumer asset marketplace in Australia’s energy future.
AusNet General Manager Network Strategy & Planning Rod Jones commented, “The EDGE trial has given us the opportunity to see the potential of Consumer Energy Resources (CER) to unlock more value for our customers and strengthen our future energy network to accommodate more renewable energy.”
“One of the aims of Project EDGE was to demonstrate the full potential of solar and storage assets installed at customer premises,” Mondo General Manager for Distributed Energy Dhammika Adihetty explained.
“This initiative has enabled us to demonstrate how businesses and individuals can reduce energy costs by joining a Virtual Power Plant while also playing a role in transforming the energy sector,” he said.
Deloitte Access Economics’ Independent Cost Benefit Analysis reveals that increased coordination of active DER in the NEM could lead to a cost savings of $5.15 – $6.04 billion over 20 years for all electricity consumers and $3 billion in societal emissions reductions.
Consumer research indicates half of respondents are interested in joining a VPP, with nearly 25% being highly interested and only 3% having negative opinions about VPPs.
This suggests that as DER increases and more consumers gain access to clear information about the possible benefits of joining VPPs, positive opinions towards VPPs may convert into interest in joining VPPs.
