Empowering tomorrow's energy by redefining network utilisation

The UTS Institute for Sustainable Futures (ISF) have secured a significant grant from Energy Consumers Australia (ECA) to spearhead a pioneering research project aimed at revolutionising 'network utilisation' metrics.

The funding will enable the development and testing of innovative measures that are aligned with current needs, making them fit for purpose in today's rapidly evolving energy landscape, in the interests of all customers.

The core focus of this project is to enhance network productivity. This is crucial for reducing the overall cost of energy, especially as customers increasingly adopt solar and move towards electrifying their homes and vehicles. 

“We’re thrilled to be partnering with ISF on this important piece of research. Consumers are currently paying more than they need for their electricity because networks are underutilised. By updating how we measure network utilisation, this can deliver better outcomes for consumers and help ensure a least-cost energy transition,” said Alexandra Bishop, Associate Director, Grants Program, ECA.

Network utilisation is a key historical metric used to gauge over- or under-investment in the network. However, with the uptake of consumer energy resources, the existing metric is no longer fit for purpose.

It does not account for the value that customers receive from two-way flows on the network, and masks localised network constraints that are becoming more prevalent during the energy transition. 

By updating how we measure network utilisation, this can deliver better outcomes for consumers and help ensure a least-cost energy transition.

– Alexandra Bishop, Associate Director, Grants Program, ECA

Better measures of network utilisation can address these issues to inform network planning, highlight stranded asset risks, and incentivise the adoption of non-network solutions, such as flexible demand. 

“With technologies like electric vehicles coming online as a flexible load or grid resource, this presents a huge opportunity to reduce average energy costs; but only if we update how we measure the use of our poles and wires,” said Dr Edward Langham, ISF Research Director.

Policy dialogue

A significant aspect of this project is initiating and shaping a policy dialogue centred around the networks' role in efficiently managing two-way energy flows. This conversation is vital for all stakeholders, particularly consumers, as it directly impacts their interests and the broader shift towards sustainable energy practices.

The project will kick-start promptly, and engage an industry reference group, including the Australian Energy Regulator, the Australian Energy Markets Commission, consumer and public interest advocates, network businesses, and EV and solar companies, to develop consensus on new metrics. As the project progresses, it is expected to provide valuable insights that will contribute to a more efficient, resilient, and consumer-friendly energy network.