While the energy transition discussion often focuses on the utility scale transition through mega projects, the spotlight is growing on the critical role of a lower cost, lower risk approach which puts buildings and the building sector front and centre.
Most recently, the nation’s energy and climate change ministers agreed to develop a National Consumer Energy Resources (CER) Roadmap – Powering Decarbonised Homes and Communities.
In August this year the Electricity Supply & Reliability Check Up for the NSW government recommended it should prioritise a strategy to harness continued uptake of rooftop solar, greater use of batteries and smaller supplementations of the existing transmission and distribution grid – otherwise referred to as Consumer Energy Resources.
An exciting opportunity
Spinifex is an opinion column open to all our readers. We require 700+ words on issues related to sustainability especially in the built environment and in business. Contact us to submit your column or for a more detailed brief.
This approach represents an exciting opportunity for the building and construction sector to use its skills, services, and assets.
Our industry, across all tiers, will increasingly be required to enable this ongoing customer led transition.
Related investments in the existing grid such as community batteries will add to the pool of opportunities. Where once the distribution companies held out against the two-way flows of electricity and advent of “prosumers” – those of us that generate more than we need – governments and electricity industry captains now have a sense of the opportunity that comes with being at the heart of this transition, and they need our help.
More importantly, they need our help NOW. The time isn’t coming, it’s here.
In truth, while mega utility projects like Snowy 2.0 capture the headlines, the transition at the customer or distributed level through rooftop solar PVs, batteries and EVs has been building momentum.
AEMO predicts that from now until 2050 rooftop solar will grow fivefold, and while one in four NSW households currently have solar, by the end of the period it forecasts that 66 per cent of households will have solar.
Of course, the Commonwealth’s expansion of the Capacity Investment Scheme is significant and large generation, storage and transmission projects have a critical role, but as the Check Up noted, 2030 is not far away and large-scale projects are “subject to significant engineering and cost risks”.
Consumers are an untapped source of opportunity
By contrast, the Check Up describes consumer energy resources as an area of untapped opportunity that will continue its growth trajectory in coming years, encouraged by high grid prices.
Importantly, creating urbanised energy generation and storage solutions is aligned to electricity customer behaviour of increasingly turning to solar and batteries to obtain lower cost electricity.
Much of this is what is called “behind the meter”, meaning it is largely self-used and not exported to the grid. For consumers this is a rational choice. The ACCC monitoring of electricity markets consistently shows lower bills for households with solar.
Property owners are finding that free charging
points are an expectation of tenants and shoppers,
company vehicles and even employees
Businesses with rooftop solar get the benefits
Businesses with roof space in industrial and retail environments are increasingly following suit. If electricity use is mainly during the day and coincides with solar generation, the business case for on-site generation is particularly strong. With a likely increase in electricity demand coming from electric vehicles, property owners are finding that free charging points are an expectation of tenants and shoppers, company vehicles and even employees.
While few of us expect grid electricity prices to come down in coming years, the ongoing high uptake of solar and batteries should see the capital costs of these technologies continue to decline. With that will also come higher uptake of enabling technologies like smart meters, smart devices that help with efficiency.
The Check Up even floated the idea of “urban Renewable Energy Zones”.
The building and construction industry will be at the heart of the success of this second approach to energy transition that will touch ALL of the built environment value chain, from property owners, investors, developers, designers, facility managers and of course the builders our much-needed contractors.
It is now time to get on board and be part of the transition that doesn’t wait.
Cameron O’Reilly led the Marsden Jacob team that recently undertook the NSW Electricity Supply and Reliability Check Up. Maria Atkinson AM has decades leading sustainability initiatives in the real estate and construction sectors.
– With Sarah Turner