Pricing and Integration of Distributed Energy Resources
- $207k Funded by ARENA
- $569k Total project cost
Summary
The project examines a way to value & provide pricing and integration for distributed energy resources services within network and customer sites. This includes direct customer DER, aggregation of DER, wholesale market integration of DER, and the use of DER for ancillary services and reserves.
How the project works
In this consultative project, Oakley Greenwood will develop initial approaches and assessments, then seek feedback and comments from project participants, industry experts and other parties. The input of these organisations will be coordinated by Oakley Greenwood through a series of working sessions. Webinars with a wider set of interested parties and special briefings for market bodies will also be held as part of the project to both gather views from and inform stakeholders.
Learn more
Report: Pricing and Integration of DER Webinar Summary
On 15 October 2019, Oakley Greenwood presented a knowledge sharing webinar on their ‘Pricing and Integration of Distributed Energy Resources’ study.
Report: Pricing and Integration of Distributed Energy Resources
The report examines a way to value & provide pricing and integration for distributed energy resources services within network and customer sites.
Media Release: Distributed Energy Projects Awarded Nearly $10 Million
ARENA awarded $9.6 million in funding to 12 projects and studies to further integrate DER into the electricity system.
Area of innovation
The project will use sound economic principles for the integration of DER into the supply chain and associated markets. Stakeholder input will be used to develop cost-reflective and economically efficient price signals for the services that DER can provide to each part of the electricity value chain.
Basing the price to be paid for the various services DER can provide on the impact of each of the costs incurred by the electricity supply, will help ensure the deployment and operation of DER contributes to the electricity system as a whole, enabling aggregate consumer demand for electricity at the lowest cost, and without cross-subsidies.
Benefit
The pricing and integration study will provide a set of approaches that can be applied to maximise the economically efficient deployment and use of DER by providing cost effective price signals at all levels of the supply chain.
The use of such price signals will ensure:
- customers have the information and incentives needed to choose whether they use, do not use, generate and/or store energy based on the financial outcomes they receive
- industry and third parties have clear opportunities to identify approaches for contracting customers and aggregating DER.
ARENAWIRE Blogs
Plotting next steps in distributed energy transformation
As Australians embrace rooftop solar at world-leading rates, work is underway to create a modern, fairer electricity system for the future.
$9.6 million to support distributed energy revolution
To support the transition to an electricity network that is increasingly powered by small-scale energy assets, ARENA has announced $9.6 million funding for 12 new projects and studies.
What are distributed energy resources and how do they work?
According to the twentieth century model of energy distribution, large power plants fuelled by coal, hydro or gas, generated electricity that was distributed via a centralised grid.
