Distributors are the ‘missing middle’ in the future of energy

Public discussion might focus on large power stations and consumer solar installations, but the real opportunities, he argues, lie within the distribution network’s capacity to enable localised, cost-effective solutions.

“Amid the talk of the customer behind the meter, solar panels, batteries and EV chargers, we’re missing this middle rump that could drive lower cost outcomes,” England says. “There’s a lower-cost, faster opportunity to transition sitting right in our networks, under our noses.”

Although traditional poles and wires will always remain critical - and running a grid remains a highly complex technological and engineering feat - he says the distributor’s focus is shifting towards becoming a platform that supports innovation and competition.

The three pillars of its strategy, he says, involve sub-transmission (132kV and lower) networks that enhance infrastructure to support large-scale renewables; community batteries that offer cost-effective localised storage solutions; and EV charging that leverages existing infrastructure, such as street poles, as charging stations.

“We aim to be a platform where competition can operate around us, extending further into new technologies to offer lower-cost solutions that others can build on,” he says.

One of its standout innovations, so far, has been the deployment of community batteries. These are significantly larger than home batteries, with pilot projects demonstrating that they can store surplus solar power at half the cost of individual home systems.

“Think of it as a sponge for excess solar energy,” England says. “By soaking up surplus solar during the day and discharging it in the evening, community batteries reduce the need for additional network infrastructure while offering customers savings of up to $200 a year.”

After initial pilots, Ausgrid is scaling up, with plans to install eight larger batteries, each capable of supporting thousands of homes, with ambitions to do many more. These batteries not only optimise energy distribution but also allow retailers to provide innovative services, such as storage-as-a-service for households without solar, or with solar panels and no battery.

EV kerbside charging is another foray that aims to balance customer outcomes, policy and regulatory requirements with shareholder value.

England says EV adoption is being significantly held back by the lack of public charging options. Australia, he says, based on newly released data has a ratio of 68 cars per public charger whereas the Netherlands has five.

‘There’s a lower-cost, faster opportunity to transition sitting right in our networks, under our noses.’

— Mark England, Ausgrid CEO

“Add to this the fact that around 30 per cent of Sydney residents do not have access to a garage or driveways, and it further exacerbates the problem in many parts of our city,” he says. “Facing this challenge, we have proposed an innovative solution for kerbside charging that efficiently uses our existing poles and wires.”

He says the solution mounts directly to power poles and connects to the low voltage network.

“Ideas like this are a good example of how we extract greater value from our existing network,” he says. “We provide the platform, retailers bill the customers.”

Energy advisor and author of My Efficient Electric Home Handbook, Tim Forcey, says the role of electricity distribution network businesses can not be underestimated in Australia’s transition to net-zero.

“They can either be the good guys or the blockers,” Forcey says. “While the way they are regulated means they can’t do every possible thing, there are lots of ways they can help.

“Examples include excellent and non-damaging use of smart meters, supporting and rolling out of EV charging, deploying and managing distribution-grid-scale batteries, and the everyday managing of voltage to ensure the electricity can flow where it needs to flow all the time.

“Having a householder-consumer focus is key.”

Another crucial aspect of Ausgrid’s strategy is enabling greater flexibility in energy demand without requiring consumers to change their behaviours. Technologies like batteries, EVs, and smart home systems allow for seamless adjustments to when and how energy is used.

England says: “Customers shouldn’t have to change when they cook dinner. Instead, the energy sector needs to adapt.”

Ensuring equity in the energy transition is also central to the mission. Doing otherwise, he says, would be akin to rolling out the NBN but limiting access to wealthier households.

“Our grid is a socialised piece of infrastructure - everyone should benefit from this transition, not just early adopters.”

As Australia works toward net zero, England says the distribution network can act as both a catalyst and a bridge. By maximising the utilisation of existing infrastructure and scaling innovative solutions, the distributor aims to ensure a lower-cost, more accessible energy transition for all Australians.

“We must avoid applying old-world solutions to new energy challenges,” he says. “The energy sector has to innovate continuously to meet the needs of a changing world.”

To find out more, please visit Ausgrid.