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Ausgrid to buy solar power from Syd businesses.

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Electricity network operator Ausgrid has reacted to ballooning infrastructure maintenance and repair costs by investing in a pilot trial for solar power. They’re offering to buy solar from local Sydney businesses in a trial area to see how renewables can help move a company, which has been called “possibly the least efficient network in Australia” (via Hugh Grant (no, not that one!) from the Australian Energy Regulator) into the future.

Ausgrid’s Solar Trial

Ausgrid Solar
Ausgrid’s $2m Solar Pitch (source: ausgrid.com.au)

Ausgrid, Australia’s biggest network operator, was privatized and sold to two Australian super fund managers late last year. Technically the deal was a 99-year lease of their assets, while the New South Wales government holds 49.6% and a consortium of IFM Investors and AustralianSuper holds the other 50.4% interest.

With electricity networks now utilising PV solar to cut costs and future-proof their businesses, it’s clear the cat is well out of the bag in terms of Australia’s energy future. 

Via a $2 million trial investment, Ausgrid is offering $250 per kilowatt for companies in certain Sydney suburbs (Auburn, Erskineville, Alexandria, Redfern, Randwick, Waterloo and Kingsford Smith, according to RenewEconomy) to install solar panels on the top of warehouses and industrial facilities.

A tender document noted: “We consider solar power systems and energy efficiency retrofit activities would offer permanent demand reductions over the typical network need period once installed.”

They hope to reduce grid demand and subsequently lessen the amount required to fix existing infrastructure – and if this pilot is successful Ausgrid could potentially roll the offering across their entire network, which spans Sydney metro, the Central Coast, and the Hunter Valley.

The future for Ausgrid and Solar Power

Now that they’re starting to realise the inexorable march towards renewable energy means adapt or perish, there are myriad pathways Ausgrid could take from here.

Assuming their trial project is successful, they could roll the entire 1.6 million customers into a bunch of microgrids, implement local energy trading, and they could also consider looking at further decentralising their grid – they could offer incentives for energy storage, not just solar panels. 

Whatever ends up happening, Australia’s solar power future is clearly starting to shine brightly when companies like Ausgrid start to turn to renewables to save money! 

 

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Power Price Rises in NSW as Regulator Loses Case

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There’s never been a better time to start investigating solar energy in New South Wales – this week a federal court has blocked regulatory efforts to curb power price rises in NSW. Residential bills are set to soar even higher in the face of already over-inflated prices.

Power Price Rises in NSW

The Australian Energy Regulator (AER) argued in court that the NSW electricity distribution businesses (pole and wire companies like Ausgrid and Endeavour Energy) were inefficient (the cost of transporting electricity from station to house consists of approximately 40% of your bill). This 40% made up the majority of the AER’s ongoing (since 2015) complaints to the Australian Competition Tribunal and subsequently the Federal Court on appeal.

Power Price Rises in NSW - Paula Conboy
AER Chair Paula Conboy

According to the Australian Financial Review, the loss of this court case means that average households will face an increase of around $100 per year. Ausgrid have advised that average household electricity prices will raise by 1.5% or $11 a year for the next six years. Evidently the actual figure remains to be seen.

Since the 99-year lease for 50.4% of Ausgrid (the electricity infrastructure company which owns, maintains and operates the electrical distribution networks for 1.6m NSW residents) was sold to IFM Investors and AustralianSuper in October 2016, concern about already high energy prices has been growing. This court decision will result in a windfall of billions of dollars for the new investors of Aussgrid and Endeavour Energy. Other companies set to benefit include Jemena (who own ActewAGL) and will set a dangerous precedent for the rest of Australia.

Ramifications for other states

Craig Memery, policy officer with the Public Interest Advocacy Centre was quoted as saying “Not only will NSW households pay more following this decision; the precedent set will affect future decisions by the regulator, impacting households across the country.” However NSW energy minister Don Harwin said the government has ‘guarantees’ in place that mean consumers will pay less to the distributors in 2019 than they did in 2014.

Paula Conboy, chair of the AER, said the decision was “disappointing for NSW and ACT electricity and gas customers overall. Our 2015 decisions set lower revenues than proposed by the network businesses in NSW and ACT, partly because we concluded that costs above efficient levels should be funded by the network owners, not customers.”

Once again we’ll just have to see what this means for the rest of Australia but it’s hard to view it as anything but a growing problem for Australians who are on track to consume almost 200 Terawatt hours in 2017.

 Time to invest in solar?

Despite the outcome of this case prompting Energy Minister Josh Frydenberg to reaffirm his call for a reform of the national electricity market rules (in order to stop companies gaming the price setting system), we don’t have much faith in the government to stop the ridiculous levels power prices have reached. With the cost of solar + storage at an all time low and dropping consistently, it’s definitely reaching a point where you can add value to your residence and decrease energy costs in the medium-long term by investing in solar power. Power price rises in NSW are going to continue at the same rate – take a look at our solar battery comparison chart to learn more about your options and wrest control away from the unmitigated, uncontrolled greed of the power companies and continued incompetence of the government and judicial system.

 

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