ARENA commissioned NERA Economic Consulting and Energy Synapse to model the potential value of flexible demand in the electricity transition. This study provides important information about how increased demand-side participation across major sectors of the Australian economy can contribute to the energy transition.
Report extract
The Australian Renewable Energy Agency (ARENA) engaged NERA Economic Consulting and Energy Synapse to model the potential value of flexible demand in the electricity transition.
The Study provides important information about:
- how increased demand-side participation across major sectors of the Australian economy can contribute to the energy transition
- the potential contribution from different sources of demand-side flexibility and their role in offsetting the need for new-build large-scale generation assets
- the potential savings that could be achieved by enabling greater load flexibility through Australia’s energy transition.
Insights from the Study can inform:
- long term system planning for resource adequacy
- long term transmission planning
- the cost-benefit analysis of potential market reforms that seek to enable greater demand side participation
- the relative priority that should be given to researching and demonstrating new technologies and commercial approaches to enable greater load flexibility.
The scope for this study was jointly developed by ARENA, the Australian Energy Market Commission, the Australian Energy Market Operator, the Australian Energy Regulator and the Energy Security Board, with the intention of informing the development of a long-term vision for the enablement of demand side participation across major sectors of the Australian economy.