` Electricity distributors can drive lower-cost transition Sponsored by Ausgrid Jun 28, 2024 – 8.52am https://www.afr.com/policy/energy-and-climate/distributors-can-drive-lower-cost-transition-20240620-p5jndk
This article explores innovative strategies and sustainable solutions for meeting the nation’s growing energy demands. Electricity distributors can help deliver a lower cost, more socially equitable transition. At Ausgrid we operate a shared electricity network that powers the homes and businesses of more than 4 million Australians living and working in an area that covers over 22,000 square kilometres from Sydney to the Upper Hunter. [Photo caption: Ausgrid CEO Marc England: now is the time to have a proper debate on the role well-regulated distributors can play in the energy transition beyond maintaining poles and wires.] The traditional view of electricity distributors is that they are there to maintain the poles and wires. That is Ausgrid’s job, but we also recognise our role should evolve with the changing nature of the energy mix and the journey towards net zero. To date, too much emphasis in the national narrative is centred on either end of the energy system: large-scale renewable generation with associated high-voltage transmission or consumer energy resources located behind-the-meter. Long distance high-voltage transmission is necessary but it’s proving expensive and slow to deliver because - rightly - companies need to earn the social licence from the communities that will host the infrastructure. While solar panels, batteries and electric vehicle chargers in homes and businesses come with equity questions like: should all consumers pay to accommodate those who can afford new technologies in their home? The conversation needs to shift to what role the infrastructure linking the two, the electricity networks, can play in solving these challenges. Beneath our noses sits a huge opportunity to help deliver the nation’s transition goals at a lower cost with less reliance on high-voltage transmission if we enhance the role of distributors. It’s important to note, our role has already changed somewhat. It used to be about delivering electricity to your door and that electricity generation was turned up and down at the power station to match demand. Today, electricity flows in both directions as the network absorbs rooftop solar and there is no switch to control the sun or the wind. Where once there was a one-way street, now we have heavy traffic in both directions. It is through the lens of this reality the debate should be had. Let me give you two examples where a shift in thinking about the distributors’ role can deliver a cheaper, faster and fairer transition. Firstly, batteries act as a sponge during the day absorbing solar generation and then feed that back to the network during peak times putting downward pressure on prices. Batteries can be installed on land close to substations, keeping them out of sight and bringing connection costs down. The benefits that could be realised can be seen in what we call community batteries. Ausgrid estimates if only half the storage capacity envisaged to go into homes over the next 25 years at the consumers’ expense were to be delivered by community batteries it would save NSW $25 billion. Community batteries also share the benefits of solar with those renting, in apartments or who can’t afford personal batteries. Allowing Ausgrid to connect community batteries into the grid at scale with, where needed, the appropriate level of community consultation, would not only facilitate the journey to net zero but also create a more stable network offering cost-of-living benefits. Secondly, the availability of electric vehicle charging is often pointed to as a barrier to EV adoption. At present, there are less than 150 kerbside charging points in our network – which makes it hard for owners without off-street parking to charge. A regulated business like Ausgrid can install chargers at scale ahead of the demand curve and must ensure they are maintained, much like streetlights. Both examples ensure greater access for more people to the benefits of the energy transition, a faster deployment of renewables and a less detrimental impact on communities than current pathways. To achieve this, distributors need to have a regulatory system that facilitates solutions plus governmental support to drive the scale required to bring down costs and speed up delivery. If we break the shackles of old-fashioned thinking about the role of distributors, there are tremendous opportunities to drive a lower cost transition. One final thought, in every urban setting there are rooftops, like those on warehouses, that have the potential to house solar panels. Marry those to a community battery and you can unlock a substantial electricity supply for the local community. What if electricity distributors were given the OK to develop these solutions? This would also mean urban areas can share more of the transition heavy lifting with those in the country. Now is the time to have a proper debate on the role well-regulated distributors can play in the energy transition beyond maintaining poles and wires. Marc England is CEO of Ausgrid. -- _______________________________________________ Link mailing list [email protected] https://mailman.anu.edu.au/mailman/listinfo/link
