Utility Week

8 | 10TH - 16TH JANUARY 2020 | UTILITY WEEK Utility of the Future: Regulation Analysis continued from previous page ☛ Distributed energy resources (DER), such as roo op solar, home batteries, electric vehicles and smart appli- ances will play a key role in the electricity system of tomorrow, but • nding ways to make these systems work in a grid designed for large, centralised generation is a challenge that energy experts are grappling with. Australia is leading the world on DER integration in a scramble to accommodate a massive uptake of roof- top solar, installed on around two million homes. Work is already under way to reform network charging so that customers pay not just for energy consumed but for access to the services required through the network, while being rewarded for providing services to the grid. A $12.5 million (£7 million) pot from the state-run Australian Renewable Energy Agency will fund innova- tion projects and studies designed to integrate DER into the electricity system. One project will trial so ware on the New South Wales grid that acts as a "traŠ c controller", with the ability to remotely increase or decrease output from cus- tomer-owned assets to manage grid congestion. Another will develop a prototype smart hot water system that can be aggregated into a centrally controlled Œ eet and exploit energy usage predictions and weather forecasts to opti- mise the use of excess solar power to heat water. The latest review of the regulatory framework, by the Australian Energy Market Commission, pushes for major grid reforms to integrate DER intended to avoid billions of dollars of capital investment in new capacity such as substations, poles and wires. Among other things, the report recommends that "Australians had tax breaks to install solar panels but the grid implications were not thought through so the regulator has had to be very nimble to deal with the overload." Guy Newey, strategy and performance director, Energy Systems Catapult distribution network operators and the Australian Ener gy Regulator introduce reduced network tari" s for customers who invest in solar PV with electricity storage, as an incentive to improve grid eŠ ciency. It calls for the accelerated development of techni- cal standards and information to support the integra- tion of distributed energy. These include: new regulator guidelines to evaluate revenue proposals from distribu- tion businesses for projects designed to better integrate DER; a review of competition in smart metering arrange- ments; and identifying distribution businesses' future data requirements, including additional meter data that should be collected. Guy Newey, strategy and performance director at the Energy Systems Catapult comments: "Australians had tax breaks to install solar panels but the grid implica- tions were not thought through so the regulator has had to be very nimble to deal with the overload and get the market signals right to encourage people to pro- vide grid stability. It's a leading example of regulatory innovation." Lessons from Australia: How do we integrate distributed energy resources? "Australians had tax breaks to install solar panels but the grid implications were not thought through so the regulator has had to be very nimble to deal with the overload." Guy Newey, strategy and performance director, Energy Systems Catapult

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