IEEFA – Growing the sharing energy economy, Oct 23

The article highlights the need for Australia to increase its renewable generation in order to meet its emissions reduction targets. Currently, the country is falling behind in its progress towards reaching 82% renewable generation by 2030. This is primarily due to the slow pace of electricity infrastructure development and a lack of new large-scale renewables investment. In contrast, rooftop solar generation has been growing significantly, reaching a record high of 46.7% in the National Electricity Market (NEM). Australian households have already spent $25 billion on rooftop solar and other Distributed Energy Resources (DER). Not only does rooftop solar reduce bills for consumers, but it also lowers wholesale electricity prices. DER, such as storage and demand responsive appliances, have multiple benefits for the energy system, including providing electricity and services to the grid in times of need and reducing reliance on costly electricity networks. However, the full potential of DER has yet to be unlocked due to technical, regulatory, and market design limitations. The desirable end state is a sharing energy economy where DER can communicate and trade energy services with one another and the wider grid. To achieve this, there needs to be more flexible demand, increased storage options, and greater participation in Virtual Power Plants (VPPs) for DER owners.