PLUS ES and AGL have announced a project to test whether dynamically managing customers’ hot water systems through smart metering can support grid stability and lower energy costs for consumers.
This demonstration will tackle the fast-emerging challenge of balancing supply from distributed generation and minimum demand periods, due to the increasing adoption of rooftop solar PV.
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PLUS ES will build on its existing smart meter capability to allow AGL access to the technology that can control load hot water for optimal demand management. The program will allow AGL to manage spot market pricing to move up to ~48MW of residential demand across up to 20,000 AGL controlled-load customers in South Australia.
As the energy market shifts toward a net-zero emissions future, this flexible demand management capability will help maintain grid security while also providing a model for other DNSPs, States and Retailers on how to successfully shift significant hot water load to the benefit of the network, the market and end-customers.
The project, funded in part by ARENA’s Advancing Renewables Program, will also be delivering the outcomes and learnings through the knowledge sharing partner UNSW.
PLUS ES executive general manager Jason Clark said, “Electric hot water systems are currently the largest and most predictable load of household electricity consumption, our smart meters are able to dynamically change the timing of the hot water load to soak up excess solar generation, support grid security and save customers money”.
AGL chief customer officer Jo Egan said the learnings from this project would help consumers, other retailers and the broader market understand more about the benefits of retailer-orchestrated DER.
“This project has tremendous opportunities for our customers, for AGL, and for PLUS ES’s smart meters across the market. As AGL dynamically manages hot water systems in South Australia for thousands of our customers, we will be taking advantage of high renewable energy generation available during the day, to test if this can help with grid stability and support a reduction in energy prices.
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“This partnership with PLUS ES, which is supported by ARENA, aligns with AGL’s commitment to utilise our expertise, work with likeminded businesses and innovate to meet the changing needs of our customers, now and in the future. We are excited to apply the lessons learnt from South Australia to encourage similar programs across the other states for the benefit of our customers, other retailers and the market.”
