Australia leads the world in rooftop solar, but not all Australians are realising its full benefits, due to current energy market design.
With the right policy and market settings in place, our new report, commissioned with Rennie Advisory, shows how effectively integrating Consumer Energy Resources (CER), like rooftop solar, into the energy market, can lower electricity prices and improve reliability for all consumers – even people who don’t own CER.
Demand response, or managing when people use electricity, also has an important role to play in driving down prices.
Read the summary report (PDF, 326.01KB)
About the report
Our new report, commissioned with Rennie Advisory, shows how international solutions can lower electricity prices and energy system costs, through better integrating Consumer Energy Resources (CER), like household solar and batteries, and demand response into our National Electricity Market (NEM).
It recommends:
- CER coordinating body – Assign formal responsibility for setting vision, strategy and overall coordination of CER’s role in the NEM to a dedicated and enduring national body
- CER targets – Set clear targets for CER adoption and coordination into NEM planning documents
- Targeted NEM reform – Lower barriers for CER participation in the NEM through focused reform to existing NEM processes
This research included a review of jurisdictions outside the NEM to identify market settings and models that would allow CER to provide grid services. It also included engagement with DNSPs, AEMC, AEMO, industry bodies, aggregators, and independent industry experts.
About the National Electricity Market (NEM) Review
Targeted reforms may be particularly relevant to the scope of the National Electricity Market (NEM) Review, and include recommendations such as:
- Lowering participation thresholds for aggregations of CER to 100kW
- Enabling multi-node aggregation for CER
- Modernising metering and telemetry rules and standards
- Enhancing the dispatch methodology in the NEM as required to achieve optimised system and resource allocation outcomes that incorporate CER
We can have it both ways: the current NEM Review presents a unique opportunity to provide both better consumer value and enhanced system benefits, through better CER integration. By looking to examples of this in practice, and drawing on sectoral expertise, we can make sure all consumers get a fair deal.
