Unlocking Potential: Distributed Networks for Affordable Renewable Energy
Australia’s distributed electricity networks are raising concerns about being overlooked in the planning for the country’s shift towards green energy. They argue that these networks have the capacity to accommodate large amounts of wind, solar, and storage resources at a significantly lower cost compared to the focus on new transmission lines.
The debate around the need for new transmission infrastructure has become a contentious issue in Australia’s energy sector, sparking resistance from communities and becoming a central point in discussions around the promotion of gas and nuclear energy. The escalating costs of some projects are also prompting a reevaluation of their benefits.
The “Missing Middle” in the Green Energy Transition
Marc England, CEO of Ausgrid in New South Wales, highlights that distributed networks like his own are often referred to as the “missing middle” in the transition to green energy. He and his counterparts are establishing a “distributed ISP” to present their case to grid planners and policymakers, emphasising the untapped potential of these networks.
England, echoing sentiments from Essential Energy’s John Cleland, points out that the advantages offered by distributed networks have been historically overlooked. With the soaring costs of new high-voltage transmission lines, there is a growing argument for leveraging existing infrastructure more effectively.
One example cited is the Hunter Central Coast renewable energy zone, which stands out for not relying heavily on new transmission lines to support renewable energy projects. Ausgrid proposed hosting up to six gigawatts of new wind and solar capacity in the region but was only approved for 1 GW, which it is predominantly servicing through its current infrastructure.
England stresses the importance of exploring alternatives to the traditional high-voltage network approach, especially when the costs are significantly lower. He advocates for a more balanced consideration of distributed networks, highlighting the potential to achieve renewable energy goals more cost-effectively.
Challenges and Opportunities in Renewable Energy Zones
The renewable energy zones (REZs) in New South Wales are facing challenges, including project delays and cost overruns. Grid access has emerged as a critical issue, with a substantial amount of new capacity vying for limited spots within the designated zones.
Developers are experiencing frustration due to delays in accessing the grid, prompting some to explore alternative locations outside the REZ boundaries. This situation has prompted Ausgrid and other NSW network operators to propose their own distributed ISP as a viable solution to address these challenges.
By leveraging the existing distribution networks, these operators believe they can offer a more efficient and cost-effective approach to integrating renewable energy resources into the grid. They are advocating for a more inclusive discussion that recognises the potential of distributed networks in facilitating a smoother transition to a greener energy mix.
To learn more about Marc England’s insights on community batteries, household tariffs, EV charging, and the transition to electric homes, you can listen to the latest episode of the Energy Insiders podcast.
