Action needed now on distributedenergy use

WELLINGTON: Maximising use of solar power, batteries and other forms of distributed energy could save the country about $500 million longterm, the Electricity Authority has been told.

Giving owners of those technologies equal access to distribution and transmission networks would speed their takeup and enable their output to be sold to other users or be used in coordinated services by network companies, the industry’s Innovation and Participation Advisory

Group says.

A market for such distributed energy resources (DER) will be needed, and network companies will need to set minimum technical standards for those wanting to provide coordinated services.

But the group says action is needed now to maximise the benefit to consumers and minimise the cost of implementing the ‘‘radical’’ changes required.

The industry, the Electricity Authority and the Commerce Commission will need to act now to reduce barriers to equal access, it says.

‘‘Delaying action will create significant costs to consumers, particularly from uncoordinated or constrained investment in DER,’’ the IPAG says in its report.

‘‘We expect the rate of DER investment will be orders of magnitude greater than traditional electricity infrastructure investment — acting with urgency to remove barriers to equal access will increase the benefits and avoid the costs.

‘‘Failure to take action is likely to lead to increased costs to consumers from either lower service quality or increased networkprovision costs in future.’’

Solar power, batteries and electric vehicles are seen as keys to helping the country meet emissionreduction targets while potentially lowering the cost of energy longterm. But they also have the potential to distort power flows or overload some lines, and make power systems less reliable.

IPAG says the new technologies must be coordinated and predictable but the potential benefits are large.

If network companies use only their own demand response and DER, they could achieve gains of $100 million to $150 million at the distribution level, and another $50$400 million if they are used in other markets.

But if all procurers can access those services from any owner, the potential distribution gains climb to $150 million to $300 million and the benefits from other services jump to $400 million to $750 million.

IPAG says creating a market for those services will generate revenue streams and accelerate investment in panels, batteries and automated management systems. But using them to help manage local grids will also require more and better data about the needs of the lowvoltage power network.

IPAG prefers distributors develop processes themselves but noted that, historically, industryled processes ‘‘have not been fast’’.

It has recommended the Electricity Authority publish a plan by June for developing an equalaccess programme. — BusinessDesk

❛ Failure to take action is likely to lead to increased costs to consumers from either lower service quality or increased

networkprovision costs in future