Home solar, batteries, EVs could unlock savings of $19 billion by 2040

Unlocking $19 Billion in Savings: The Power Trio of Home Solar, Batteries, and EVs by 2040

Smart Appliances and Renewable Energy Could Boost Economy by $19 Billion by 2040

According to energy, sustainability, and climate change expert Gabrielle Kuiper, the widespread adoption of smart appliances, rooftop solar, and electric cars with two-way charging could lead to an economic boost of at least $19 billion by 2040. Kuiper emphasizes the importance of treating these consumer or distributed energy resources (DER) as seriously as large-scale generation and transmission when it comes to investment, planning, and regulation.

A meta-analysis of nine studies has shown that flexibility will be crucial in maximizing the value of electrification and reducing the costs of transitioning to clean energy sources. Kuiper suggests that consumers should be rewarded for adjusting their energy consumption patterns to support the grid. By doing so, Australia could save $19 billion in network and generation costs by 2040, including $11 billion on new transmission infrastructure and $10 billion in reduced generator profits.

Kuiper highlights the versatility of heat pumps, hot water systems, home battery systems, and electric cars, referring to them as the “Swiss army knife” of the electricity system. These resources have the potential to support the entire grid. However, Kuiper warns that the longer Australia delays implementing reforms to support DER integration, the fewer benefits will be realized. Urgent action is needed to make the necessary technical, regulatory, and market reforms to fully integrate these assets into the national electricity market.

DER can provide generation, storage, and flexible demand, and when coordinated effectively, can also offer network services, emergency power supplies, and ancillary services to support the electricity system as a whole. Energy ministers are expected to discuss a consumer energy resources road map at their meeting in Canberra on March 1, indicating a growing recognition of the importance of DER integration.

Dr. Kuiper emphasizes the need for bold action to integrate DER into the electricity system in order to secure Australia’s future economic prosperity, reduce electricity and transport costs, and eliminate dependency on gas prices.


Source: AAP

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