ENA pushes for local grid to play bigger role in energy transition

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A new report from industry body Energy Networks Australia (ENA) identifies that the existing electricity distribution infrastructure can play a bigger role in achieving decarbonisation targets while avoiding unnecessary capital expenditure in the transition to clean energy.

The Time is Now report highlights the untapped opportunities within distribution networks, identifying significant latent capacity and under-utilised resources including controllable loads, interruptible supply, energy storage and commercial and industrial rooftop solar.

Modelled by United States-headquartered consultancy firm L.E.K. Consulting, the report shows there are opportunities that can be unlocked and enabled now to deliver a faster and more cost-effective path to a net-zero energy system in Australia.

“There is clear evidence that there is untapped potential in the distribution networks” L.E.K. Partner Jeff Forrest said. “To date, however, energy resources connected to electricity distribution networks have often been ascribed a static role in energy transition plans, but there is latent capacity in the distribution grid and the supporting industries to play a more significant role.”

The modelling shows that the right policy and regulatory settings could unlock at least 5 GW of additional rooftop solar, 7 GW of additional ‘community generation’ and 5 GW of additional distribution-connected battery storage, alongside enabling at least 4 million electric vehicles (EVs) on the road by the end of the decade.

The report forecasts that increasing rooftop solar and linking it with available grid capacity, integrating batteries locally and rolling out kerbside EV charging on existing power poles will avoid $7 billion in overall system costs by the end of the decade. Australia will also be better positioned to achieve its 82% renewables target by 2030.

ENA Chief Executive Officer Dom van den Berg said that it is time to stop thinking about distribution networks as just ‘poles and wires.’

“Australia is already working hard to deliver large-scale renewable generation projects and transmission infrastructure, and we must not lose focus on that. But we can introduce complementary measures at a local level to keep momentum,” she said.

“We must get smarter with how we use existing infrastructure, how we maximise rooftop solar, how and where we store and manage it locally, and how we get more EV chargers in more places.”

“There is a clear opportunity to get the local grid doing more of the heavy lifting in the energy transition and achieve greater savings for customers by 2030, but that window of opportunity is closing.”

Among the recommendations outlined in the report is to allow distribution networks to establish and operate local energy hubs by linking locally generated solar with unused capacity in the grid.

The report also calls for a class waiver to allow distributors to share battery capacity with third parties, and incentives for commercial operators to install more solar on existing rooftops for sharing with local communities.

It also calls for EV chargers to be classified as a distribution service allowing distributors to install and maintain local charging infrastructure and for energy resources to be connected to the grid in a coordinated and flexible way.

Van den Berg said the report calls for changes that are entirely doable and can be delivered today through the right policy decisions, and fit-for-purpose regulatory settings.

“This is about supporting customer choices and enabling a local grid that better serves them,” she said.

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