IEEE Power & Energy Magazine - November/December 2020 - 21

approaches-from new interconnection standards and flexible export limits to virtual power plants (VPPs)-for
managing the ever-growing penetration of D-PVs and, increasingly, home battery energy storage systems (BESSs)
and electric vehicles (EVs). Meanwhile, consumers across the state are contemplating their most recent power
bill and their growing climate concerns, looking up at their empty roof space, and considering investing in D-PV
themselves.

State of Play
The Australian National Electricity Market (NEM) serves approximately 90% of the population through one of
the longest interconnected power systems in the world (Figure 1). The electricity sector was restructured during
the late 1990s and features a regional wholesale spot market and retail competition. Transmission network service
providers and distribution network service providers (DNSPs) are regulated monopoly businesses, separate from
the generators and suppliers that purchase electricity from the spot market and sell power to consumers through
deregulated retail market arrangements. AEMO is both the independent system operator and the market operator
across the east and west coasts of Australia.

D-PV Uptake
Low PV system prices, excellent solar resources, and a significant proportion of
stand-alone housing in Australia, coupled with high retail electricity prices, have
led to a notable D-PV uptake during the past decade. Australia now has the highest proportion of houses with D-PVs worldwide, with approximately one in every
four houses (all dwellings excluding apartments) having installed D-PV equipment
and more than 2.2 million systems in total. The state of Queensland has the highest penetration of D-PVs, closely followed by South Australia (Figure 1). However,
the relative contribution of D-PVs to demand is much greater in South Australia
compared to Queensland, given South Australia's smaller industrial load and mild
climate. The South Australian DNSP is SA Power Networks (SAPN). In Queensland,
there are two DNSPs. Energex serves the metropolitan southeast, and Ergon Energy
Network serves the more rural northern and western consumers; both are part of
the Energy Queensland Group.
While the majority of D-PV systems in Australia are small (with capacities
of lower than 30 kW ac), there is an emerging market in the 30-200-kW range
for commercial and industrial sites. Between 2018 and 2019, the number of new
D-PV applications approved in South Australia alone increased by 50%, and
the high D-PV uptake is widely expected to continue. Across NEM, AEMO has
forecast D-PV generation to more than double by 2039-2040 in all NEM market
regions under a central uptake scenario and to at least triple under a high-uptake scenario. While D-PVs are the most common of the distributed energy resources (DERs)
in Australia, other forms of DERs, including BESSs, are also increasingly prevalent.
However, there remains a limited visibility of D-PV operation and minimal, if any,
remote interoperability.

Contributions to Meeting NEM Demand
D-PV generation is making increasing contributions to meeting demand, particularly during mild autumn and spring conditions. At certain times of day,
D-PVs, in aggregate, represent the largest single generator in NEM, reaching
an estimated maximum of 6 GW of instantaneous generation in 2019 (or 23%

By Naomi Stringer, Anna Bruce, Iain MacGill,
Navid Haghdadi, Peter Kilby, Jacqui Mills,
Taru Veijalainen, Matt Armitage, and Nigel Wilmot
november/december 2020

ieee power & energy magazine

IEEE Power & Energy Magazine - November/December 2020

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