Major electricity retailers join Ausgrid flexible resources pricing trial

An electricity pricing model trial that dynamically generates costs through a virtual power plant to unlock benefits for and from consumer energy resources has been expanded beyond its initial 200 participants.

September 11, 2024 Ev Foley

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Sydney-headquartered electricity retailers Shinehub and Origin Energy, and Melbourne-based retailer Energy Australia have joined distributor Ausgrid’s pricing model trial called Project Edith, with founding partner and software company Reposit Power.

Project Edith dynamically generates the cost of using the network at particular times and locations, to unlock value both for and from consumer energy resources (CER) such as home batteries while supporting network stability and electricity demand.

Outputs of current network pricing compared to dynamic network pricing.
*Image: Ausgrid and Reposit Power*

Ausgrid Market Development and Strategy Group Executive Tim Jarratt said by introducing prices that can change in near real-time based on network conditions, customers with flexible resources such as home batteries can be compensated for supporting the grid during times of constraint.

“The nature of the network has fundamentally changed. It used to deliver electricity in one direction, from the power station to your door but today, there are increased electricity flows in both directions as the network absorbs rooftop solar,” Jarratt said.

“It is vital network companies like Ausgrid evolve to meet the changing needs and opportunities of the transition and find ways to help accommodate as much residential rooftop solar on the grid as possible.”

Jarratt said variable generation like wind or solar needs firming up and that can in part be provided by the aggregation of customer-owned flexible devices into virtual power plants.

Ausgrid Distribution System Operator Services’ Alida Jansen van Vuuren said Project Edith was designed to test and showcase dynamic network pricing as a viable solution for integrating flexible energy resources onto a distribution network while unlocking greater customer value.

“Project Edith is about redefining how we think about how customers are using their grid connections. We know increasingly customers are taking up new energy tech and participating in new constructs like virtual power plants,” Jansen van Vuuren said.

“This technology means customers can use the grid more efficiently, but only if they are appropriately incentivised to do so, and that’s where Edith comes in with dynamic, cost reflective pricing and rewards. The more people using the network efficiently drives the cost down for everyone.”

Ausgrid’s submission to the Australian Energy Market Operator’s Integrated System Plan highlighted modelling by economists HoustonKemp which calculated wholesale electricity market benefits of Project Edith to between $54 million (USD 35 million) and $398 million over 20 years.

For customers with an electric vehicle and battery, this is about $160 per customer per year, a benefit that would grow if the concept spread to other networks.

Comparison of static export limits versus dynamic operating envelopes.
*Image: Ausgrid and Reposit Power*

Shinehub Chief Executive Officer Jin Woo Kim said the initiative represents a significant step towards fairer pricing and a more stable energy network.

“We’re excited to see how our innovative software and technology can create unique tariffs for the Australian electricity market, empowering our customers with solar and battery solutions to actively participate in the energy market, driving both cost savings and sustainability,” Mr Kim said.

Project Edith is named after Edith Clarke, a pioneer of electrical power system analysis, considered the ‘Mother of Invention’ at GE alongside Thomas Edison and Nikola Tesla.

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