$4.4 million to support smart power management and cut energy costs

The Albanese Government is backing energy distributors in Victoria to deploy innovative technologies to better manage electricity demand, help stabilise the grid and lower power bills.

Through the Australian Renewable Energy Agency, the government is delivering over $4.48 million in grants to United Energy and Birdwood Business Energy to conduct voluntary flexible demand trials in Victoria.

As power generation from variable energy sources like wind and solar grows, it is more important than ever to match demand to supply. Flexible demand eases pressure on the grid during peak periods, reducing peak demand and energy costs.

United Energy will receive $3.54 million for its $8 million Flexible Services Trial project, which will use smart technology to efficiently manage hot water load, rooftop solar exports and customer devices.

Birdwood will receive $942,944 to develop a $2.58 million Load Flexibility Report Card Platform, which will provide businesses with data to support decision-making on flexible demand activities.

Assistant Minister for Climate Change and Energy Jenny McAllister welcomed the trials as a smart step forward in a rapidly changing energy landscape.

“This investment is one more demonstration of the government’s commitment to back energy sector innovation to put downward pressure on energy prices,” Assistant Minister McAllister said.

“The Albanese Government’s recent National Energy Performance Strategy detailed opportunities and savings that demand flexibility could deliver, including up to $18 billion by 2040 in savings to Australian consumers. That’s why grants like these are vital to unlock savings and grid opportunities.

“The energy in our grid is increasingly renewable. By investing in smart tech for flexible demand, we’re making sure the grid is stable and meets the needs of consumers and market.”

The trial by United Energy, in partnership with CitiPower and Powercor, presents an opportunity for Victoria to fast-track the scaling up of opt-in flexible management of hot water and other consumer devices.

Birdwood’s project, to be supported by solar installers and energy efficiency experts, is expected to reduce the cost of identifying demand flexibility for commercial energy users by more than 50%.