Australia stands at the crossroads of an energy transformation, driven by ambitious decarbonisation and renewable energy targets that are promoting the widespread rollout of clean and affordable energy.
With the Australian government targeting 82% renewable electricity by 2030, the EY Net Zero Centre’s latest report, “From Chaos to Choreography,” examines the crucial role of distributed energy resources (DER) in guiding Australia towards a net-zero future.
Distributed energy resources cover a wide range of technologies, including batteries, smart appliances, electric vehicles and rooftop solar panels.
By 2050, Australia, as a global leader in solar panel adoption, will see DER become the primary source of dispatchable capacity.
Projections indicate that by then, household-owned DER will source 50% of all dispatchable capacity.
However, realising the full potential of DER requires effective orchestration to optimise its value within the energy ecosystem.
“While Renewable Energy Zones (REZs) are promising for accelerating the transition from fossil fuels to renewables, their long development timelines highlight the necessity of exploring all available options,” said Emma Herd, EY Net Zero Centre Co-Lead and Partner at Ernst & Young, Australia.
“DER offers a ready-to-deploy solution embedded in homes and businesses nationwide, providing a pathway to expedite the energy transition.”
The Australian Energy Market Operator (AEMO) forecasts a significant increase in DER adoption by 2050, underscoring its critical role in meeting evolving energy consumption needs.
However, achieving this potential requires active consumer engagement—a challenge in an industry that struggles with low levels of trust and understanding.
“Empowering consumers to actively participate in the energy transition is essential. By simplifying choices and fostering regulatory frameworks that prioritise consumer interests, we can harness the full potential of DER orchestration,” Herd stated.
“Our research shows that 75% of consumers want to collaborate with their energy providers to find alternative energy solutions.”
Navigating the complexities of energy markets poses significant challenges, often discouraging consumer participation.
Streamlining regulations and enhancing consumer trust are crucial to unlocking the transformative potential of DER aggregation.
Recent pilot projects have provided valuable insights into the feasibility and benefits of DER orchestration, laying the groundwork for scalable implementation.
“As we pursue renewable energy targets, DER becomes a critical enabler of this transition. Effective orchestration of these resources ensures a seamless transition and maximises the benefits of renewable energy for all stakeholders.”
The upcoming National Consumer Energy Resources Roadmap presents a pivotal opportunity to outline ambitious reforms and foster nationally consistent action.
Investments in DER adoption and orchestration are essential for accelerating Australia’s progress towards a sustainable and prosperous energy future.
Amidst the challenges posed by large-scale infrastructure projects, leveraging distributed energy resources offers a transformative solution to propel Australia’s energy transition towards net zero, sharing the benefits of this transition across households.
The Australian Competition and Consumer Commission (ACCC) notes that up to 79% of residential customers could save money by changing electricity plans, further highlighting the financial benefits of embracing DER.
“We need to set the rules early before most consumer assets are commissioned. Orchestration must be understood and trusted to become second nature to customers. This will require simple, attractive, customer-centric offerings that unlock the value of DER for everyone. The time to act is now, as Australia positions itself as a global leader in renewable energy innovation,” Herd concluded.
“From Chaos to Choreography” is the first in a three-part Energy Infrastructure Executive Briefing Series, “Stepping Up to Drive the Step Change,” developed by the EY Net Zero Centre.