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Distributed energy

Pricing and Integration of Distributed Energy Resources Study

  • $207k

    ARENA Funding

  • $460k

    Total Project Value

  • Project basics

    ARENA Program

    Advancing renewables

    Lead Organisation

    Oakley Greenwood Pty Ltd

    Start Date

    Dec 2018

    Project Partners

    Australian Energy Council Limited, Australian Energy Market Operation Limited, Energy Consumers Australia Limited, Total Environment Centre Inc, Enel X (formally EnerNOC), OC Energy, GreenSync

    Location

    Melbourne

    Status

    Current

Project Basics

ARENA Program

Advancing renewables

Lead Organisation

Oakley Greenwood Pty Ltd

Start Date

Dec 2018

Project Partners

Australian Energy Council Limited, Australian Energy Market Operation Limited, Energy Consumers Australia Limited, Total Environment Centre Inc, Enel X (formally EnerNOC), OC Energy, GreenSync

Location

Melbourne

Status

Current

Summary

The project will examine the optimal way to value and provide price signals for the services that distributed energy resources (DER) can provide within the network and at 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.

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 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.

Contact information

Lance Hoch

lhoch@oakleygreenwood.com.au