Australian network reforms prioritise consumer energy assets

The Australian Energy Market Commission (AEMC) has announced a vital reform in network planning to make it easier for households and businesses to utilise their customer energy resources (CER), such as household batteries and EVs, to lower energy bills and feed energy back into the grid.

CER refers to smaller-scale energy resources owned by customers, which can produce, store, or vary how they use energy. Newer forms of CER include clean tech assets such as solar panels, batteries and EVs, as well as more traditional assets such as hot water heaters and pool pumps.

As part of a broad set of reforms, the AEMC announced a priority for customers to make better use of these CERs and contribute to grid stability.

In a release, AEMC chair Anna Collyer said investing in these resources empowers consumers to generate, consume, store and trade energy according to their preferences.

“By using these assets in a smart way, customers can lower their energy bills, and should they choose, share the power they generate or vary their consumption in such a way that it supports the overall grid,” said Collyer.

Have you read:
Australia’s AEMC recommends new obligations for 2030 smart meter rollout
Australia updates market rules to reduce power outage potential

A draft determination paper by the AEMC outlines positions on how to unlock the benefits of CER, with new arrangements made for:

• ‘Flexible’ trading by enabling all customers to have CER separately metered and therefore identified and managed separately from other ‘passive’ consumer loads such as lights and fridges.
• Large customers choose multiple energy service providers for their premises.
• An in-built measurement capability in technology such as streetlights and EV chargers to be used instead of additional meters, which allow for the measurement and management of energy use at lower cost.

The AEMC states the reforms as part of their work to create greater visibility of price-responsive resources, such as household batteries, making it easier for customers to participate in the power market, while helping AEMO and networks to operate the system more efficiently.

Added Collyer: “The key to a successful transition is integrating these resources effectively into the National Electricity Market. Our only choice is to be well prepared.

“If we do not properly integrate CER into market processes, we face materially higher generation, network and intervention costs. Consumers have a critical role in the transition – but to do so – they need sound policy decisions from us all.”

Further network reforms discussed in Canberra

Days following the announcement from the AEMC, The Energy and Climate Change Ministerial Council (ECMC) met in Canberra, Australia, and committed to undertaking reforms on network planning through a National Consumer Energy Resources Roadmap.

The roadmap will deliver reforms on new consumer protections, network reforms to allow consumers to export more solar power to the grid, as well as nationally consistent standards in key areas, including vehicle to grid (V2G) technologies.

By doing so, states the Council in a communique, downward pressure will be placed on overall system costs and consumer bills, while contributing to emissions reductions and broadening access to CER.

According to the communique, reforms in each of these areas are already underway, such as those being coordinated by the AEMC, including streamlining connection processes, making Service and Installation Rules nationally consistent, and establishing standards and a regulatory framework for CER.

In response to the statements, Energy Consumers Australia CEO Brendan French commented in a release:

“Energy Consumers Australia welcomes today’s announcement that governments will develop a consumer-focused reform package to present at the next energy ministers meeting in July.

“There are just too many barriers that prevent people getting better energy deals, particularly people in financial stress or experiencing disadvantage. Pricing structures are too complex and it is difficult for consumers to understand the terms they see on their bills.

“Our research has found that 32% of homeowners and 44% of renters say they are unsure which tariff structure they are on. Many people simply cannot participate in a market as arcane as this one.

“We also support the government’s commitment to undertaking reforms through a National Consumer Energy Resources Roadmap. There are many instances now where people and communities are not only consumers, but suppliers of energy and they should be fairly rewarded for the generation, storage and services they provide to the system.”