ESB Report Highlights Accountability Gaps in Rooftop Solar Integration by Network Companies
The Energy Security Board (ESB) has issued a final report urging coordinated leadership and action on the integration of consumer energy resources, such as rooftop solar, home batteries, and electric vehicles. This call comes as the ESB faces dissolution following a decision by state and federal energy ministers. The 84-page report, released by the federal government, highlights the increasing consumer demand for rooftop solar, the surpassing of electric vehicle uptake forecasts, and the growing trend of electrification. It emphasizes that policy governing consumer energy resources is at a critical stage and requires progress from a demonstration phase to a reform design and implementation phase.
The report outlines six key priorities, with the top priority being the definition of the role of distribution network service providers (DNSPs) in a high consumer energy resources (CER) environment. This includes identifying the capabilities and interfaces between DNSPs and other industry participants, such as the Australian Energy Market Operator (AEMO). The report acknowledges that the current regulatory and investment frameworks limit the capabilities and accountability of distribution networks in integrating CER. It calls for a clear framework to shape how networks forecast, plan, and operate in a high CER environment.
Other priorities highlighted in the report include establishing a common data architecture for CER operation, developing a future-fit technical governance and compliance framework, ensuring consumer protections and education, and implementing robust backstop capabilities in each jurisdiction to enhance operational security.
Rewiring Australia, an organization focused on integrating rooftop solar into the grid, welcomes the report’s emphasis on the role of DNSPs but believes that the recommendations fall short of the necessary governance and competition reset. They argue that the electricity market needs a policy redesign to accommodate the availability of low-cost solar and to reduce bills and emissions. Rewiring Australia calls for greater support for households to invest in solar panels, batteries, and electric appliances, as well as the removal of barriers preventing their installation.
The ESB’s report highlights the need for coordinated efforts and leadership from governments, market bodies, and jurisdictions to ensure the successful integration of consumer energy resources. It emphasizes the importance of addressing regulatory limitations and establishing clear frameworks to enable the secure and reliable supply of electricity to all consumers.
