The growth in Australian households installing solar PV, batteries and driving electric cars will require development of a new competitive energy market to make sure consumers maximise the value from these technologies, a new report has found.
The Distribution Market Model final report released today by the Australian Energy Market Commission (AEMC) found that these new consumer-led energy technologies will play an important role in helping to manage the electricity system in the 21st century.
The report found that not only should customers taking up new technologies be able to use or sell electricity they generate as owners of solar PV currently do, but customers should be able to shop around and contract the use of these energy technologies to the highest bidder.
Australian Energy Council Chief Executive Matthew Warren said under a distributed energy market households and businesses will be able to sell their electrons or the use of their devices like batteries to the highest bidder.
“The AEMC report outlines the importance of having open and competitive energy markets in the 21st century as energy consumers play an expanding role in supplying both energy and services to stabilise the grid,” Mr Warren said.
“Consumers will have increasing control over their energy in the 21st century. They will deliver the greatest benefit to the grid and get the best value for their investment in energy technologies if they can shop around in competitive energy markets.
“The AEMC report highlights the importance of allowing energy consumers to work with competing energy service providers. As the report says: ‘centrally coordinated orchestration of such a market is likely to result in inefficient and costly outcomes’.
“It is consistent with an assessment by KPMG undertaken for the Australian Energy Council that competitive markets will deliver the best distributed energy resources outcomes.
“It is an exciting time and Australia is a world leader in the development of these markets and services. Today’s AEMC report provides an important blueprint that should be heeded by all governments and businesses to deliver a more efficient 21st century grid and real savings for consumers.”
A copy of the KPMG report is here.
About the Australian Energy Council
The Council represents 21 major electricity and downstream natural gas businesses operating in competitive wholesale and retail energy markets. These businesses collectively generate the overwhelming majority of electricity in Australia and sell gas and electricity to over 10 million homes and businesses.
Australian retail household electricity prices in the National Electricity Market are the lowest they have been for eight years and are the 10th lowest of the 38 OECD countries, according to analysis undertaken by the Australian Energy Council.
Published in The Australian, 16 December 2021 By Sarah McNamara, Chief Executive, Australian Energy Council In mid-2020, the Australian Energy Council supported adoption of a Net Zero by 2050 target for Australia.
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