Integration of consumer energy resources (CER) and flexible demand

The ESB is currently seeking stakeholder feedback on the rationale and options for capturing ‘standing data’ for new EVSE installations as presented within the Consultation Paper. See 'Electric Vehicle Supply Equipment Standing Data Consultation Paper' below for full details. 

By 2030, AEMO expects around 50 per cent of consumers, including large businesses, to use some form of consumer energy resources to participate in the demand side of the national electricity market. There are enormous opportunities arising from the way Australians have embraced solar on their rooftops, smart appliances and, increasingly, batteries and electric vehicles.

Investments in rooftop solar, batteries and smart appliances can not only lower consumers’ bills but also provide them with new levels of control over their energy use. For households this flexibility can mean improved convenience and comfort, while for businesses more flexibility can mean greater productivity or a way to electrify their processes. Moreover, these benefits can help lower system costs for all consumers – not only those with rooftop solar.

However, most solar PV on rooftops today is ‘passive’, meaning it cannot change its output up or down in response to signals. This makes it harder for AEMO to balance supply and demand minute by minute as it operates the system and maintains a secure and stable grid, and also means customers cannot easily provide and be rewarded for flexibility for turning output up or down.

The Post-2025 reforms seek to unlock the full potential of consumer energy through arrangements that reward customers with flexible demand for responding to market conditions. Increasing information and signals to the market will help us to get more value for customers from consumer energy resources and keep the system safe and stable so everyone can use energy the way they want to. Importantly, the Post 2025 reforms include measures to address some immediate technical challenges to keep the system secure as we transition to this flexible, rewards-based future.

The detailed technical, regulatory activities that will be delivered are set out in the CER Implementation Plan. 

The Plan aims to:

• Reward consumers for their flexible demand and generation, provide options for how they want to engage with the energy market, and provide a fit-for-purpose consumer protections framework.
• Support energy market innovation, allow for the integration of new business models and provide a more efficient supply and demand balance.
• Allow networks to accommodate the continued uptake of CER and two-way flows and enable them to manage the network’s security in a cost-effective way.
• Provide the system operator with the visibility and tools it needs to continue to operate a safe, secure and reliable system.

It is critical that the reforms deliver products, services and systems that work for customers, and respond to their evolving needs and expectations in a fast-moving market. That is why the Plan is supported by the Customer Insights Collaboration, which will work with stakeholders to generate customer insights to guide the reform activities.

The ESB published the following items on 17 December 2021.

A Scope of Works for delivery of reform activities in the CER Implementation Plan over Horizon One (2022). This is intended to:

• Provide stakeholders with more clarity about the approach that we intend to use to give effect to National Cabinet's decision to deliver the DER Implementation Plan,
• Provide clarity on the lead agency for each of the reform activities over Horizon One (2022) and what are key milestones or next steps for each activity.

You can also download the following related documents:

• Attachment A - three-year horizon of DER Implementation Plan
• Attachment B - customer insights collaboration
• Attachment C - activities for Horizon One

To support customers to easily switch between CER service providers, and to get the most value from their CER assets, a degree of 'interoperability' will be needed between CER devices and supporting systems and process interfaces.

• The ESB carried out a consultation seeking stakeholder views on an assessment framework to inform consideration of the trade-offs involved in applying relevant technical standards relating to inverter based CER devices. 
• The assessment framework has been prepared by FTI Consulting and was published as an accompanying document to the ESB consultation.
• Submissions received to the consultation can be found here.
• ESB Workshop - 17 Feb - Draft Interoperability Policy Assessment Framework
• DEIP ISC Presentation for ESB - February 2022

Interoperability Policy – Directions Paper

The ESB published a directions paper on 13 October 2022, seeking stakeholder feedback on interdependencies between the suggested approachesproposed within it.

• Interoperability – Directions Paper
• Stakeholder webinar - Slide Pack

Submissions

The ESB received 23 submissions in response to the Interoperability Policy Directions Paper, including two personal submissions and one informal or confidential submission. All public submissions are now available online.

Electric vehicle (EV) charging is set to transform our electricity systems. There is broad consensus that EV integration presents both major opportunities and challenges for the electricity grid. Currently, networks and the Australian Energy Market Operator (AEMO) do not have access to reliable data on the size, location, and characteristics of electric vehicle supply equipment (EVSE) to enable them to determine and manage these opportunities and challenges effectively.

EV uptake is expected to accelerate rapidly. There is an opportunity for Australia to put in place appropriate systems to ensure system planners and operators, or other parties, have the information they need to manage this transition effectively.

The ESB is seeking stakeholder feedback on the rationale and options for capturing ‘standing data’ for new EVSE installations presented within the consultation paper.

• Electric Vehicle Supply Equipment Standing Data - Consultation Paper
• Electric Vehicle Supply Equipment Standing Data – Webinar slides

Submissions on the paper close 10 February 2023, and can be submitted via email to info@esb.org.au

As part of the CER Implementation Plan, the Energy Security Board (ESB) has been tasked with developing policy advice regarding what technical foundations are necessary to support the effective integration of smart charging for EVs into the National Electricity Market (NEM).

The ESB published an Issues Paper in July 2022 seeking stakeholder views on a range of issues relating to the development of effective arrangements for EV smart charging in both domestic and public settings.

• Electric Vehicle Smart Charging – Issues Paper
• Electric Vehicle Smart Charging Issues Paper – stakeholder webinar slides - 2 Aug 2022

Submissions

The ESB received 36 stakeholder submissions in response to its Electric Vehicle Smart Charging Issues Paper, including 6 informal or confidential submissions. All public submissions are available below:

• ESB’s Electric Vehicle Smart Charging Response to Consultation paper

The ESB in collaboration with market bodies is hosting quarterly check-ins with stakeholders to enable a high-level discussion about the delivery of the CER Implementation Plan. The quarterly check-ins build on the engagement and consultation underway for each reform activity.

• Q1 2022 – Presentation (31 Mar 2022)
• Q2 2022 - Presentation (28 Jul 2022)

The ESB has set out a range of reform initiatives as part of its integrated CER Implementation Plan.These include: