Why Energy Retailers Could Benefit From Giving Power to the People

Australia is leading the way for energy market transformation, one where power, quite literally, lies increasingly with the people.

Better known in the 1960s as a slogan to champion cultural change, or as one of John Lennon’s famous song titles, ‘power to the people’ is set for a resurgence of a different kind.

In early November, the Australian Energy Market Commission (AEMC) made headlines when it said the country needed to prepare for a ‘completely new’ two-sided energy market, in which consumers are rewarded for buying and selling energy in real-time.

When it comes to accelerating the take up of renewable energy, the idea of a two-sided market could be the solution the world’s energy markets have been looking for.

This kind of market mechanism will undoubtedly encourage consumers to not only use renewable energy, but also encourage them to stay connected to the grid.

There is an upside for grid operators in facilitating the trading of energy and for consumers selling excess energy to their neighbors and the market.

This idea forms part of AEMC’s latest information paper, seeking to open discussions on how best to ‘harness digital disruption’ for the benefit of Australia’s energy consumers.

The AEMC’s latest announcements all point to one revolutionary concept that flips the energy market on its head; companies buying their product from their customers.

Expanding the network  

AEMC’s latest information paper follows the release of its report that called on electricity distribution networks to urgently rethink their system models.

Integrating distributed energy resources for the grid of the future was published as part of the AEMC’s 2019 economic regulatory framework review.

In a nutshell, AEMC’s key finding was that Aussies are actually big fans of distributed energy resources (DERs); particularly when electricity is generated from sources (often renewable) near the point of use instead of from power plants. The AEMC also…

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