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OVERVIEW

Becoming a grid optimizer in the new age of energy

The energy landscape in Australia is shifting fast, placing new demands on grid operators. Utilities must adapt, but they are hamstrung by an outdated industry model of centralized generation and energy delivery that was intended to maximize economies of scale.

Australian Utilities have invested billions in infrastructure that has a long life, but it also has consequences that linger. The electricity industry is at a critical tipping point and there is a major risk of misallocating investments at this point in time.

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KEY FINDINGS

Conventional asset planning must align with what will happen in the grid. Continuing to invest in redundant grid assets will drain value and deflect potential savings opportunities. To plan the right investments, utilities must know—at a street level—the impact of adoption. Communities in the same city can have drastically different adoption patterns.

Investing in the wrong areas not only leads to potentially lost revenue, it puts the grid at risk for overload and failure. Bottom-up analytics and economic modeling reveal a clearer picture of energy impact from neighborhood to neighborhood, giving grid operators insights needed to prevent disinvestments and optimize system-wide investments. However, few have the capabilities needed to do so.

RECOMMENDATIONS

Utilities must move from being managers of the grid to distribution platform optimizers. Next steps are:

Get granular, bottom-up insights

Get granular, bottom-up insights.
Capture details on customer demand and map insights onto the local energy infrastructure topology.

Develop customer-led scenario planning capabilities

Develop customer-led scenario planning capabilities.
Analytics will help develop customer adoption scenarios, determine local investments and optimize decisions.

Create an innovation ecosystem

Create an innovation ecosystem.
Join forces with key stakeholders - including prosumers, cities and aggregators - to exploit new value opportunities.

Adapt your operating model

Adapt your operating model.
Apply the learnings from the bottom-up insights and customer-led scenarios to shape a new market model.

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