Commonly used energy terms
The energy sector is full of terms and references that might be unfamiliar.
Battery storage
A technology that stores electrical energy in batteries for later use. It allows for the efficient storage and retrieval of electricity and essential services to keep the grid stable. Batteries respond faster than other energy storage systems and help maintain grid stability by turning on and off in fractions of a second.
Behind the meter
Also known as Distributed Energy Resources (DER) refers to energy resources located in customer’s homes or businesses that lie outside the reach of the network. It includes solar panels, energy storage, electrical vehicles and energy management technologies installed in homes or businesses.
Bidirectional
Refers to the ability to transfer energy or information in two directions. A bidirectional energy flow allows energy to be exchanged between two systems such as an electric car and a house (vehicle to load), or an electric vehicle and the grid (vehicle to grid).
Big battery
Refers to a large-scale energy storage system, typically based on lithium technology.Big batteries provide storage and grid security. They can store electricity and provide it to the grid when demand is high. They are flexible, incredibly quick, and relatively easy to build.
'Bill savings simulator'
A free online simulator provided by the Climate Council that can workout how much a household might save in a year through a range of different actions including electrifying their cooking, heating and hot water, and boosting their home’s thermal efficiency.
Community or neighbourhood battery
A shared energy storage system installed in a community or neighbourhood. Community batteries allow multiple households or businesses to store excess energy locally and draw from it when needed. This increases energy reliability and energy independence for communities.
Critical minerals
Minerals, such as lithium, cobalt, and rare earth elements, that are crucial for the production of batteries, solar panels, electric vehicles, electronics, and other advanced technologies.
Demand side response
Refers to the consumption of energy by households, businesses, or industries. Demand side energy management focuses on managing and optimising energy consumption, how much of it is used, and when it is used.
Distributed Energy Resources (DER)
Renewable energy systems located in homes or businesses. Also referred to as ‘behind the metre’ because the electricity is generated or managed behind the electricity in a home or business.
Energy efficiency
The measure of how effectively energy is used to achieve a desired outcome. It involves reducing energy waste and maximising the output or benefits obtained from the energy consumed.
'Energy Made Easy'
A free online government service that can be used to find and compare home and small business electricity and gas plans.
Energy rebates
The Federal and State governments offer financial rebates to offset the cost of energy. The Low Income Household Rebate for example in NSW helps low income households cover the cost of their energy bills. The Energy Bill Relief Fund is Federal and State initiative that provides electricity bill relief for eligible households and small businesses.
Firming capacity
Electricity generation that can be turned on when needed such as battery storage, pumped hydro, or fossil fuel generators. Firming capacity helps ensure there is enough power.
Fossil gas
A fossil fuel composed mainly of methane (CH4) commonly used as a source of energy for heating, cooking, and electricity generation. Often referred to misleadingly as ‘natural gas.’
Fuel emissions standards
Also called vehicle emission standards, are set by governments to limit the amount of pollutants and greenhouse gas emissions produced by vehicles. They help improve air quality, reduce environmental impact, and mitigate climate change.
Gentailer
A term used to describe companies that both generate and retail electricity.These companies are involved in the entire energy supply chain, from power generation to selling electricity to end consumers.
Green energy
Energy generated from renewable sources that have minimal impact on the environment.Green energy includes solar power, wind power, hydroelectric power, and geothermal energy, among others.
Greenwashing
The practice of conveying a false or misleading impression of environmental responsibility or sustainability. It involves making unsubstantiated claims, exaggerating or misrepresenting environmental benefits.
Grid
The interconnected network of power lines, transformers, and other electrical infrastructure that delivers electricity from power plants to homes, businesses, and other facilities.
Heatpump
A device that transfers heat from one location to another, typically for heating or cooling. Water heat pumps extract heat from the surrounding air, ground or water and transfer it to heat the water stored in a tank, using an electric compressor. Heat pumps designed for space heating extract heat from the outdoor air or the ground and transfer it into a building to provide heating, or remove heat from indoors and transfer it outdoors for cooling.
Home energy management system (HEMS)
A system that helps homeowners monitor, control, and optimise their energy usage. It may include smart devices, energy monitors, and automation technologies to improve energy efficiency and reduce costs.
Induction stove
A type of electric cooking appliance that uses electromagnetic fields to generate heat directly in the cooking vessel. Induction stoves heat up quickly, provide precise temperature control, and are more energy-efficient compared to traditional electric or gas stoves.
Internal combustion vehicle
A type of vehicle with an engine that burns fuel internally to produce power.Most cars with petrol or diesel engines are internal combustion vehicles, which emit carbon dioxide and other pollutants during operation.
LED lights
Light-emitting diode (LED) lights are energy-efficient lighting devices that use semiconductors to produce light. They consume significantly less energy than traditional incandescent or fluorescent lights and have a longer lifespan.
Lithium
A lightweight metal commonly used in rechargeable batteries, particularly in electric vehicle batteries and energy storage systems. It has excellent energy storage capacity and is a key component in advancing clean energy technologies.
Micro grid
A localised energy system that can operate independently or in connection with the main power grid. It usually incorporates multiple energy sources, such as solar panels, wind turbines, and energy storage, to supply power to a specific area.
Micro inverter
An electronic device used in solar energy systems that converts direct current(DC) electricity produced by each individual solar panel into alternating current (AC) electricity, typically used in homes and buildings.
NationwideHouse Energy Rating Scheme
A national framework in Australia that assesses and rates the energy efficiency of residential buildings. It provides a rating system that helps homeowners, builders, and designers make informed decisions about energy-efficient design and construction.
Paris Agreement
An international treaty signed by countries around the world to address climate change. The agreement aims to limit global warming to well below 2 degreesCelsius above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5 degrees Celsius. It sets targets for reducing greenhouse gas emissions and promotes global cooperation to transition to a low-carbon, sustainable future.
Photovoltaic (PV) solar
Solar PV is the rooftop solar installed on the roofs of homes and businesses that converts sunlight directly into electricity by using the photovoltaic effect, where semiconductors generate an electric current when exposed to light.
Smartgrid
An electricity system that uses digital technologies and communication technologies to monitor and manage electricity generation, distribution, and consumption. They enable bidirectional communication between utilities and consumers, integrate renewable energy sources, and support efficient energy management.
Solar inverter
A device that converts the direct current (DC) electricity generated by solar panels into alternating current (AC) electricity, which is used in most electrical appliances and can be fed into the power grid.
'Solar Maximiser'
A free online tool provided by Solar Analytics to help Australian households decide when is the right time to 'electrify everything.'
Solar tariff
A financial incentive or subsidy provided by governments to promote the adoption of solar energy. They include feed-in tariffs, tax credits, or rebates, and help offset the cost of installing solar panels and encourage renewable energy generation.
Supply side
Refers to the production or generation side of the energy sector. It focuses on the sources of energy, such as power plants, oil wells, or renewable energy installations. Supply side management refers to the actions taken to ensure the generation, transmission and distribution of energy are conducted efficiently.
Thermal performance
The measure of how efficiently a building or system transfers or retains heat. It can determine whether a home is freezing cold in winter or warm and cosy.
Vehicle to grid (V2G)
A system that enables electric vehicles (EVs) to supply electricity back to the power grid. EV batteries can be used as a source of energy during peak demand periods or to support the grid during power outages.
Vehicle to load (V2L)
A system that allows electric vehicles (EVs) to power external devices or equipment. The EV's battery can be used as a portable power source for camping, emergency backup, or other applications.
Virtual power plant (VPP)
A network of decentralised energy resources, such as solar panels, wind turbines, and energy storage systems, that are aggregated and coordinated to function asa single power plant.
Wholesale electricity prices
The cost of electricity at the wholesale level, typically determined through auctions or negotiations between electricity suppliers and buyers. Wholesale electricity prices reflect the supply and demand dynamics in the energy market.