With consultations continuing on the Federal Government’s proposed Solar Sharer Scheme, EA Technology says the proposed offer reflects how Australia’s electricity system is changing and managing energy flows increasingly needs to be focused on local network conditions.
The Solar Sharer Scheme is designed to encourage households to use electricity during the period of the day where there is an abundance in rooftop solar generation, helping to reduce the need for curtailment and to lower system costs. EA Technology supports the offer but its effectiveness will depend on how well consumer incentives reflect conditions on the low-voltage (LV) network where rooftop solar and flexible demand are connected, and whether pricing signals avoid the unintended cross-subsidy of electricity costs across the network.
One of the challenges that needs to be overcome as the electricity system is being redesigned is the need to recognise the constraints the grid is facing in the LV network and the importance of incentivising energy consumers across the system to use excess solar when it is available. The Cheaper Home Batteries Program is yet another example where it recognises the need to install more home batteries to soak up excess solar produced by residential rooftop solar systems as a solution instead of upgrading the network.
Dr. Yogendra Vashishtha, Head of Future Networks at EA Technology Australia said, “Voltage fluctuations, congestion and export headroom vary between individual feeders, and these differences are largely invisible in today’s market signals. Similar to the Cheaper Home Batteries Program, the Solar Sharer Scheme encourages consumers to shift their demand. By using solar energy during peak generation periods, we can reduce the need for blunt constraints such as export limits or curtailing rooftop solar, and better manage localised generation on the network.”
Australia needs to encourage more renewable energy to be produced, consumed and to manage network challenges effectively at the same time. The complexity of these challenges have been raised in the Solar Sharer Scheme consultation paper including the need for cost-reflective pricing, export tariffs and flexible exports.
Yogendra said, “The Solar Sharer Scheme will be the most effective when it is supported by better insights into LV network conditions, allowing networks and regulators to distinguish between areas that genuinely need to be constrained and those that can safely absorb more renewable energy.”
“From a network perspective, export tariffs and flexible exports are really driven by locations, not just time. For the scheme to be successful, The test for the scheme is that it should not contribute towards network investments to manage excess solar on that feeder. Knowing what the network’s condition is essential if Australia would like to implement the Solar Sharer Scheme more effectively and efficiently.”
About EA Technology
Founded in 1966, EA Technology is a global leader in technology for asset management and monitoring solutions for electrical networks and assets. Headquartered in the UK, they provide innovative products, software and services to electricity generation, transmission, and distribution companies, as well as major power plant owners. EA Technology is backed by Summa Equity AB. Founded in 2016, Summa is an impact investor focusing on four thematic areas: Circularity, Sustainable Food, Energy Transition, and Tech-Enabled Resilience. The purpose of Summa is to invest in solving our global challenges.
EA Technology is committed to building safer, stronger, and smarter energy networks, supporting the transition to low-cost, resilient, and decarbonised energy systems. With expertise in preventing outages, optimising network operations, and extending asset life, EA Technology helps its clients make smarter investment decisions and future-proof their energy infrastructure.
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