Navigating the future: Consumer Energy Resources in the 2024-25 Federal Budget
Australia’s energy sector is evolving, and with it, the need for sustainable and cost-effective solutions has become more apparent. The 2024-25 Federal Pre-Budget Submissions by Master Electricians Australia (MEA) shed light on this evolution. Focused on Consumer Energy Resources (CER), MEA’s proposals aim to address both the environmental and economic aspects of energy consumption in Australia.
As a respected entity in the electrical industry, MEA brings a wealth of knowledge and experience to the table. Our recommendations are not just about new technologies; they’re about making energy more accessible and affordable for everyone. In this article, we will explore the key aspects of our submissions, understanding how CER can play a pivotal role in shaping Australia’s energy future.
The Need for Consumer Energy Resources (CER)
In today’s energy landscape, CER are emerging as an important component in promoting a more sustainable and economically viable energy model in Australia. But what exactly is CER? In simple terms, it refers to systems that empower consumers to generate, store, and manage their energy usage. This includes technologies like solar panels, battery storage, EV Charging, and smart energy management systems.
The benefits of CER are numerous. Firstly, it enables the production of clean energy, reducing our reliance on fossil fuels and helping to lower greenhouse gas emissions. This is a crucial step towards addressing climate change and preserving our environment for future generations.
Secondly, CER can enhance resilience against extreme weather events, which are increasingly occurring. Private energy generating technology can enable households and businesses to continue utilising electricity even during disruptions to the broader grid.
Thirdly, and most importantly CER gives the consumer the ability to take control over their energy usage and to dramatically reduce their ongoing energy bills, in the current high cost of living economic climate. The exciting thing is, that for every consumer who can afford to install battery storage and take themselves out of the evening peak, they are incrementally reducing the electricity prices for their neighbours who can’t afford to do so.
MEA strongly supports policies that encourage the adoption of CER. One of our key recommendations is the introduction of rebates for household and business battery storage. This financial incentive would make it more feasible for a wider segment of the population to invest in battery storage systems, thereby increasing the uptake of CER. Additionally, MEA advocates that full benefits of CER can only be realised if State’s transmission infrastructure is upgraded to allow for the evolving supply chain of energy where households and businesses not only receive energy, but also export it back to the grid. This will improve the overall efficiency and reliability of the energy grid while simultaneously increase household disposable income through reduced energy prices.
By prioritising CER, we can work towards a future where clean, reliable, and affordable energy is not only a goal but a reality.
Battery Energy Storage Systems (BESS) and Grid Resilience
An important aspect of the CER framework involves the utilisation of Battery Energy Storage Systems (BESS). These systems play a significant role in enhancing the efficiency and resilience of Australia’s power grid. BESS technology enables the storage of excess energy generated by renewable sources like solar, which can then be utilised during peak demand times or when renewable sources aren’t producing electricity, such as during the night or on cloudy days.
The economic benefits of BESS are notable. By storing surplus energy, these systems help in reducing energy wastage and improving the cost-effectiveness of renewable energy sources. This is particularly important as Australia continues to increase its reliance on renewable energy. Additionally, BESS contributes to stabilising electricity prices by providing a buffer against fluctuations in supply and demand. This has a direct positive impact on the cost of living, as energy bills are a substantial and growing expense for many households and businesses.
From an environmental perspective, the use of BESS supports the transition to a low-carbon economy. By maximising the use of renewable energy, these systems help in reducing greenhouse gas emissions, contributing to Australia’s efforts to combat climate change.
MEA is advocating for the Federal Government to provide subsidies for the installation of BESS in both residential and commercial properties. This proposal underscores the importance of government support in accelerating the adoption of clean energy technologies. Subsidies would not only make BESS more accessible to a broader range of Australians but also indicate the government’s commitment to a sustainable energy future.
Integrating CER in National Energy Policies
The integration of CER into national energy policies is crucial for driving Australia towards a more sustainable and efficient energy future. CER, which includes technologies like rooftop solar, home batteries, and EV chargers, has the potential to transform the energy sector in terms of environmental benefits and economic growth.
Policies play a critical role in facilitating the adoption and effective use of CER. They can provide the necessary framework and incentives for individuals and businesses to invest in renewable energy technologies. For example, implementing favourable tariffs for solar and exported battery energy can make these options more attractive and financially viable. Additionally, government initiatives to support research and development in CER technologies can spur innovation and lead to more efficient and affordable solutions.
Integrating CER into the national energy grid brings numerous benefits. It significantly reduces carbon emissions, helping Australia meet its climate change commitments. Economically, it stimulates growth in the renewable energy sector, creating jobs and fostering a new industry that can compete globally. Furthermore, the decentralisation of energy production, a key feature of CER, enhances the reliability of the energy supply, making the grid less susceptible to disruptions and outages.
MEA emphasises the need for comprehensive policies that support the integration of CER into the energy mix. This includes not only incentives and subsidies but also regulatory frameworks that ensure the safe and efficient operation of these systems. Prioritising CER in energy policies allows Australia to lead in renewable energy use and set a benchmark for other countries.
In particular, MEA advocates the necessity of prioritising time of use (ToU) tariff policies giving households control over power bills. During the middle of the day, the network experiences minimum demand for energy, while solar generated energy is at its greatest. Then, during 4PM-9PM, the network experiences peak demand for energy, while solar energy is no longer being generated. Implementing ToU tariffs sends price signals to consumers when to store excess energy and when to utilise and/or send excess energy back to the grid. During the minimum demand window, ToU charges would deter consumers from sending excess energy back to the grid, preventing an oversupply of energy on the network. Conversely, during the peak demand window when energy rates are at their highest, ToU tariffs would provide consumers with rebates, encouraging excess energy to be supplied to the grid leading to sustainable economic growth within communities thereby increasing disposable household income.
The Role of Electric Vehicles (EVs) in CER
EVs are increasingly recognised as a valuable component of CER, offering an opportunity to enhance Australia’s energy efficiency and sustainability. The integration of EVs into the CER framework goes beyond emissions reduction in transportation and explores how these vehicles can actively contribute to the energy grid.
The bi-directional charging capabilities of EVs present an innovative way to utilise them beyond transportation. With this technology, EV batteries can store excess solar energy and feed this stored electricity back into the grid during peak demand periods, serving as mobile energy storage units. This not only helps balance the grid load but also provides financial incentives to EV owners through rebates.
Furthermore, the growth of EVs in Australia can drive the development of related industries, such as charging infrastructure and manufacturing of battery technology. This would generate significant economic benefits, including job creation and technological advancements, contributing to the nation’s overall economic health.
Skilling the Workforce for an Electrified Future
As Australia progresses towards a more electrified and sustainable energy future, there is an increasing need for a skilled workforce capable of handling the demands of CER. The successful implementation of CER technologies, such as battery storage systems, solar panels, and electric vehicles, requires a workforce with specialised skills and knowledge.
MEA places a strong emphasis on the importance of training and skilling the workforce for this transition. We advocate for the integration of Vocational Educational Training in Secondary School (VETSS) curriculum with an equal weighting to Australian Tertiary Admission Rank (ATAR). VETSS exposure and targeted training provides all students equal opportunities for future success by cultivating a supportive and encouraging environment and exposing a greater cohort of students to Science Technology Engineering and Math (STEM) careers at an earlier age. It will cultivate both soft skills that are transferable within the STEM industry and specialised skills relevant towards specific trades such as electrotechnology; particularly important as we enter an era of electrification. Systemic and societal perception of non-traditional diverse cohorts (e.g. females, culture, linguistics, ability, etc) will be altered, inherently increasing the pool of skilled labour available to employers. It will also allow for better aptitude and competency screening ensuring the right skills are matched with the right trades, thereby improving commencement and retention rates in STEM.
MEA’s focus on education and training extends beyond meeting the immediate needs of the industry. It is also about ensuring long-term sustainability and growth. By cultivating a skilled workforce, Australia can maintain its competitive edge in the rapidly evolving global energy sector. Additionally, this emphasis on training aligns with broader economic goals, as it can lead to job creation and support the development of a robust domestic industry centred around renewable energy technologies.
The 2024-25 Federal Pre-Budget Submissions by MEA represent a comprehensive plan to tackle some of the most pressing energy challenges facing Australia today. By prioritising CER, Australia can take significant steps towards a more sustainable, resilient, and prosperous future, setting an example for the rest of the world in managing and utilising energy resources effectively.