500 South Australian households are set to go energy-smart

500 South Australian households are set to go energy-smart in a new project announced by the Australian Renewable Energy Agency (ARENA) and electricity distributor SA Power Networks.

ARENA will kick in $6.2 million to SA Power Networks' $13.8 million 'Energy Masters' project, which will see consumer energy resources and smart energy appliances installed in 500 homes.

Participating households will receive subsidies to purchase a range of electric appliances including smart split-system air-conditioners, heat pump hot water, and smart EV chargers, along with a home energy management system (HEMS) to help them optimise their home energy use.

The aim of the project is to demonstrate the collective ability of multiple households to adjust their energy use in response to factors such as energy market signals or grid conditions.

The energy consumption of the participating households will be coordinated so they can make better use of the availability of renewable energy and alleviate strain on the electricity grid during periods of peak demand.

The Government of South Australia will work with SA Power Networks to recruit households for the project, and will also provide higher subsidies to enable low-income and households undergoing energy hardship to participate in the trial.

South Australia has been at the forefront of renewable energy adoption, with a significant proportion of its energy now coming from wind and solar sources. This high penetration of renewables provides an optimal environment for testing initiatives like the 'Energy Masters' project, which aims to maximize the use of renewable energy.

ARENA CEO Darren Miller says the project will demonstrate the value of ‘aggregated flexible demand’ in an energy market that is saturated with renewable energy.

“South Australia has led the world in terms of variable renewable energy penetration, so it’s a perfect setting to trial how flexible energy use can complement a high share of renewable generation,” Miller says.

By testing energy use in multiple homes in a real world setting ARENA hopes to unlock a potential that can be replicated across Australia.

Enabling flexible demand at scale through the electrification and development of energy smart households will play a significant role in helping manage peak demand, and avoid network augmentation costs, which should reduce costs for all consumers.

Whilst the necessary technology is currently available to do this, the needs of customers, government, and retailers must be coordinated.

“We need to identify how we bring together government incentives, retail offers, energy-smart appliances and energy management systems in a way that is understandable and attractive for energy customers,” says Andrew Bills, SA Power Networks CEO.