As Australia continues to grow its share of renewable electricity generation, ARENA is looking at innovative ways to maintain system security and reliability. Flexible demand is an exciting solution that can make greater use of low cost variable renewable energy, while supporting Australia’s power system. This explainer provides insight into ARENA’s flexible demand portfolio.
Australia’s transition to renewable and distributed energy will fundamentally change how our electricity systems and markets operate.
Rooftop solar and home storage has enabled Australian households and businesses to generate more energy and consume less electricity from the grid. This is driving down minimum demand and presenting challenges for the Australian Energy Market Operator (AEMO). In its 2021 Electricity Statement of Opportunities,1 AEMO predicts that mainland regions in the National Electricity Market (NEM) and Wholesale Electricity Market (WEM) will experience daytime minimum operational demand that exceeds minimum voltage thresholds within the next five years, which presents system security risks.