Power flowing between smarter homes, cars, and businesses under a new national plan could slash bills and reduce the need for network upgrades or new power plants.
Controlling two-way power flows from rooftop solar and battery systems and the nation’s growing fleet of electric vehicles is at the heart of a consumer-owned energy road map agreed by energy and climate change ministers on July 19.
Ministers also endorsed a work plan to improve the energy efficiency of appliances and homes, potentially extending the benefits of the energy transition to renters and those unable to afford new cars.
The package of reforms would help address longstanding problems in the energy market that affect many consumers, particularly those in vulnerable circumstances or financial distress, according to Energy Consumers Australia.
“We hope all of these changes will be implemented as a priority to help Australians reduce their bills at a time when more and more people are struggling,” chief executive Brendan French said.
Consumer energy resources to be controlled under the plan include rooftop solar, batteries, electric vehicle chargers, and controlled loads such as water heaters and air conditioners, supported by a smart meter rollout.
Without the changes, and with the system already experiencing periods of high demand, system operators fear the extra load from EV charging in the evenings or an excess of solar generation during the day could increase the costs of maintaining a safe, reliable system.
But opposition energy spokesman Ted O'Brien said the federal government had failed the “final test” to get more gas into the system and stop blackouts as soon as summer.
“(Energy Minister Chris) Bowen rejected my call to prioritise gas at today’s energy meeting and to add the important fuel to the government’s poorly designed Capacity Investment Scheme,” he said on July 19.
Under the scheme to encourage new generation and energy storage, but not gas plants or nuclear, almost half of the total 32 gigawatts of capacity will be tendered in 2024 and projects that can generate by 2028 are top of the pile.
“It’s no wonder more than 600 Australian households are entering into hardship arrangements with their electricity retailer every single week,” Mr. O'Brien said.
The ministerial council’s communique welcomed a ban on energy retailers automatically switching customers onto more expensive “time of use tariffs” when a smart meter is installed.
But more work is needed to unlock significant value for home owners already stung by years of reductions in the tariffs they earn from solar assets on their rooftops.
Grassroots organisation Rewiring Australia’s executive director Dan Cass said the electrification of households and cars could deliver hundreds of billions in savings to consumers over the next 20 years if it was fair and transparent.
“The question for energy ministers is whether the massive electrification dividend will flow to consumers or be captured by incumbent energy companies who want to centralise, gold-plate and delay,” Mr. Cass said.
A newly formed alliance of farmers, electricians, and climate groups said urgent investment in new grid infrastructure and upgrades to existing powerlines were needed, as critics decry the impact of new transmission on agricultural land and landscapes.
The Transmission Alliance said governments and industry need to do a better job at talking to regional communities most affected as coal plants shut down, and properly reward farmers hosting energy assets.
“To combat climate change Australia needs big new renewable energy projects and transmission lines that connect solar and wind farms to the grid,” Australian Conservation Foundation CEO Kelly O'Shanassy said.
But every project must be assessed for its environmental impact, she said.
