By Mark Sprawson, Chief Commercial Officer, EA Technology
The Australian electricity system is increasingly being reshaped by the rise of the energy prosumer with more households that are both generating and consuming electricity at home through their rooftop solar systems, batteries, and electric vehicles.
More than 4.3 million Australian households now have rooftop solar, and the momentum is accelerating as battery adoption grows. The Cheaper Home Batteries program recently passed a milestone of 250,000 new installations, adding 6.3GWh of distributed storage, bringing the total number of homes with battery systems to more than 450,000 nationwide.
While the shift towards energy independence brings Australia closer towards achieving its ambitions to reduce its electricity emissions, the move towards a cleaner and more decentralised energy system has also introduced new operational challenges for Distribution Network Service Providers (DNSPs) who are responsible for managing the needs of energy consumers on their low-voltage (LV) networks.
As households gain greater energy independence, they are caught between two competing impulses: the desire to reduce or move their electricity use to cheaper times of day, while expecting their overall energy demand to increase as homes become increasingly electrified with electric vehicles, heat pumps and electric appliances.
For DNSPs, this creates both a challenge and an opportunity. Accommodating the growth of prosumers will require smarter, more responsive networks that can support the dynamic flows of energy generation and consumption while maintaining grid stability with smarter and more sustainable networks.
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Prosumers are pulling the grid in two different directions
A new Consumer Energy Trends report released by VisNet from EA Technology offers the most comprehensive cross-market view on how consumers in Australia, New Zealand and the United Kingdom are reshaping the future of LV networks. The research also reinforces how Australian consumers are being pulled in two different directions and how different age groups show distinct behavioural patterns when it comes to electricity consumption.
According to the report, Australians already have a high level of electricity use at home. On average, households have four home appliances, three kitchen appliances and three home entertainment appliances plugged in during the day.
Perhaps because of this, a majority of Australians believe there is room to reduce their consumption. The report finds 55% of consumers say they can lower their overall energy use with younger Australians leading the way. Among those aged between 16 to 24 years, 74% believe they could cut back on the amount of power they consume. 57% of Australians say they would be willing to shift their electricity use to off-peak or shoulder periods, where tariffs are lower.
At the same time, Australians expect their overall electricity demand to increase significantly, with the report finding that household energy consumption could rise by 35% by 2030. This expectation is particularly strong among 25- to 34-year-olds, who anticipate their energy use will increase by 45% as homes are further electrified.
Indeed, these competing desires for energy efficiency and capacity have played into findings on how Australians value new property purchases. 75% indicated that homes that have solar panels installed would make that property more attractive for them to buy, with 59% saying the same about home batteries and 42% for EV chargers.
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Smarter networks build a more dynamic electricity system
Electricity distribution is no longer defined solely by cables and substations. Intelligence, adaptability and responsiveness are increasingly critical as DNSPs respond to rapidly changing conditions on LV networks.
Network operators now require real-time, actionable insights to respond to shifting consumer behaviour, manage peak demand more efficiently, prioritise vulnerable customers in resilience planning, and enable more accurate forecasting that draws not only on historical data but also on evolving behavioural patterns.
To build a grid capable of supporting the growth of energy ‘prosumers’, DNSPs must move beyond relying on historical load profiles and embed behavioural forecasting directly into their network planning.
Using advanced load and behavioural modelling, DNSPs can simulate how consumer flexibility can alleviate peak demand by integrating real-time network data with predictive analytics. This allows network operators to identify where and when to invest in flexibility services or network reinforcement, while also encouraging time-shifting of electricity demand.
These insights also enable DNSPs to introduce smarter incentives, such as peak-time alerts and demand response programs, that reward consumers for shifting their energy use. In doing so, the relationship between networks and consumers becomes a two-way exchange, helping the grid absorb demand changes more efficiently.
Finally, aligning network development with Australia’s Net Zero ambitions will require a collaborative ecosystem. By partnering with technology innovators, DNSPs can accelerate the adoption of digital tools that unlock innovation and support the transition to a more resilient and flexible energy system.
