Network companies seek non-network solutions to peak demand problems

Victorian electricity distribution companies have made an unprecedented appeal to third-party companies to come up with smarter, cleaner and cheaper ways than more poles and wires to alleviate network capacity constraints and boost reliability during peak demand periods.

CitiPower, Powercor and United Energy on Thursday announced the launch of a full tender seeking solutions for more than 240 sites across their combined grids, including batteries and demand management programs.

The unusual call for help from outside the network tent comes as the DNSPs ramp up efforts to meet changing customer needs and support power reliability for the coming summer, including the incorporation of distributed energy resources and “flexibility” markets.

CitiPower and Powercor Head of Network Planning Andrew Dinning said it was the first time all the three networks had opened their low voltage network up to third parties, with the usual approach being to invest in upgrades or new infrastructure to manage changes in demand.

“As a distribution system operator, we want to access existing capability and create new markets to help us manage peak demand in the most cost-effective way for our customers.

“We’re expecting this tender to spark innovative ideas from market participants on both the supply and demand side.”

The companies said that the sort of non-network solutions they were seeking could include embedded generation, such as grid-connected or behind-the-meter battery storage, or other demand management solutions and resources.

The networks said the projects would predominantly support residential customers and would need to be operating by November this year. Detailed data and locations of the selected sites have been released to the market, here for United Energy, and here for CitiPower/Powercor.

“This is an important step in developing the capability for publishing data on network capacity and constraints that can enable a whole range of new, creative energy solutions for customers as the energy market transforms,” Dinning said.

The tender closes at 4pm, Monday, 30 May 2022.