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Project overview
  • Lead Organisation

    Australian Energy Market Operator Limited (AEMO)

    Location

    Melbourne, Victoria

    ARENA Program

    Advancing Renewables Program

  • Start Date

    August 2020

    Status

    Current

  • Project Partners
    Ausnet Electricity Services, Mondo Power

Summary

Project EDGE (Energy Demand and Generation Exchange) is a multi- year project to demonstrate an off-market, proof-of-concept Distributed Energy Resource (DER) Marketplace that efficiently operates DER to provide both wholesale and local network services within the constraints of a specific area of the power distribution grid.

Need

Australian households are installing DER at record rates. The Australian Energy Market Operator’s (AEMO) 2020 Integrated System Plan forecasts that by 2040 rooftop solar will represent approximately 13 to 22 percent of total annual energy consumption in the NEM. The increase in DER and large-scale variable renewable generation has displaced the thermal generators that have historically provided system security services such as inertia, frequency control, system strength, and voltage control. In addition, voltage stability issues in the electricity distribution grid could slow the uptake of solar when consumer demand for solar is higher than ever. Changes are required to address potential system security risks and to integrate DER efficiently.

Action

AEMO, AusNet Services and Mondo are partnering to demonstrate how a ‘two-sided market’ and power system could work. The three- year trial will create a prototype market for DER to be dispatched and traded as part of the NEM. Registered market participants, using customers’ DER, will submit bids to the market platform, and in turn will make these bids visible to distribution networks to increase the reliability and resilience of the whole system.

The project will include a mix of residential and commercial and industrial customers within the north eastern region of Victoria.

Outcome

The key outcomes of the project are:

  1. Demonstrate a functioning Marketplace where
    – customer-owned DER are integrated into the electricity distribution network operating envelopes
    – the operation of the DER provides required services that are incentivised by market outcomes
  2. Improve understanding of the future roles and responsibilities of Distribution System Operator functions and Distribution Market Operator operations within the NEM
  3. Improve understanding of customer insights of how a distribution services marketplace can deliver increased value to customers
  4. Improve understanding of the overall costs and benefits of different DER Marketplace models to inform process, technology and regulatory changes which are in long term consumer interests.

Additional impact

The project includes a number of knowledge sharing activities to ensure all learnings are shared with the wider industry and consumers. Additionally, a consumer insights study will provide significant understanding in how different models may directly benefit consumers both financially as well as providing more effective energy options.

Last updated
19 January 2021
Last updated 19 January 2021

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