Taking (rural) customers ‘off grid’ could be viable

Supplying some electricity customers who are a long way from the source of electricity generation “off the grid” could lead to significant cost savings and benefits such as greater supply reliability, according to a new report released by the energy industry.

The “Assessment of edge of grid regulatory and policy framework” report by Oakley Greenwood found there is a viable case for changes to regulatory arrangements to allow a reduction in the size of the supply grid.

Releasing the report, Energy Supply Association of Australia Chief Executive, Matthew Warren, said it highlighted the need to consider new approaches to supply customers at the lowest possible cost, while ensuring reliable electricity delivery.

Australia has 100,000 kilometres of power lines that supply consumers who are a long way from where the power is produced and that imposes a significant cost on the overall electricity supply system. This report highlights that just a 10%  saving in only one tenth of power lines at the edge of our supply grid would lead to overall cost savings of $50 million.

The report finds the greatest benefit would occur where:

Supply reliability is low;

• Routine maintenance and pole replacement costs are high;
• There are local specific risks, such as high bush fire risk; and,
• Distributed generation already exists or fuel is readily available.

> Free copy of this report