Want to hear how ARENA has been working to change how households consume and produce electricity as a part of the clean energy transition? Read below to learn more.
Since 2012, the Australian Renewable Energy Agency (ARENA) has sought new technology to change how Australian households consume and manage energy.
In the last six years, ARENA funds have been used in 49 projects to understand and implement specific technology to transform how homes use and consume electricity. The mission is to use these technologies to bring stability to the grid, reduce emissions and pave the way to a cleaner future for Australian consumers.
Under ARENA’s Strategic Priorities, it’s known as Flexible Demand, Demand Response or Distributed Energy Resources (DER).
The technology ARENA looks to establish could reduce emissions for Australia and produce savings for consumers’ electricity bills.
Electrify 2515
In November 2024, lead organisation Brighte along with project partners Rewiring Australia and Endeavour Energy, released the first lessons learnt report of the five expected for Electrify 2515.
ARENA provided $5.41 million for the project back in August 2024 and it was launched in October of the same year.
Basically, the goal of the project is to supply 500 households in the 2515 postcode in Northern Illawarra, New South Wales (NSW) with efficient electric appliances, rooftop solar, household batteries and a Home Energy Management System (HEMS). No gas stoves. No gas heaters—it’s all electric.
But perhaps the most important part of this is the HEMS device.
Think of HEMS as a traffic light for all the appliances in the home. A signal is sent from the grid to the HEMS device. The device then tells the appliances in the house to go, stop or slow down in electrical consumption or supply. This management by the HEMS device can help stabilise the grid during times of peak or low demand.
The grid, more formally known as the National Electricity Market (NEM), is the infrastructure in place that supplies power to Australia.
Signals sent to the HEMS device will allow households to control energy consumption and production. The data can then be evaluated to see its impact.
Community engagement from the project saw more than 600 locals attend the October launch. There were also more than 250 application submissions to take part in the project.
Since, the project has learned:
- Community engagement and local messaging builds trust and enthusiasm
- Households need better access to trusted information and decision support
- Strata renters and landlord applications for the program are low. Targeting message is planned.
- Smart energy device functionality and integration with other appliances varies between brands.
- Installers are currently unfamiliar with how to install HEMS technology
What does this all mean?
As a consumer you might be scratching your head and asking, what does this all mean? How does it affect me and what’s the big deal?
The boiled down answer is quite simple:
lower costs for households as the grid transitions to a low emissions system, and;
to maintain stability of the grid.
As Australia moves away from power plants and the burning of fossil fuels, renewable energy sources will take over. The electricity generated will come from solar, wind and other clean energy processes. The change presents a significant opportunity to maximise the full utilisation of the grid and prepare it for a fully renewable future.
The sun doesn’t always shine. Wind doesn’t always blow; it’s just a fact of nature. This means renewable electricity production can be intermittent, and we need to manage the variability.
One of the best solutions to tackle this challenge is Flexible Demand technology in homes.
In fact, the technology, if done right, could save consumers $18 billion by the avoidance of high-priced power use at the end of the day, paying coal plants to stay open and the added infrastructural costs to meet peak demand.
More importantly there will also be less outages.
If there is too much demand on the grid from households, businesses and industry, instability and outages can occur. If there is too much supply from rooftop solar, solar farms, wind and other sources, instability and outages can occur. The balance of supply and demand is key for the grid.
ARENA continues its demand response/flexible demand journey
Everyday ARENA looks for innovative and solution focused projects under its flex demand portfolio. Each project must benefit Australian communities as we progress toward net zero.
Projects ARENA supports, must align with its Strategic Priorities, deliver insight and knowledge and meet stringent assessment and board approval processes.
ARENA has invested $144 million over the past six years under its Flexible Demand portfolio bringing value to Australians through electrification and smart energy improvements.
The agency continues to look for opportunities to utilise the work it has done in this space. ARENA wants to spread the technology across the country.
More information about the types of projects ARENA funds and how to apply for funding can be found on the ARENA website.