Buildings as batteries - How buildings can support the clean energy transition

But despite the fact that there is free renewable energy going to waste in the middle of the day, and state and federal governments are spending billions of dollars to build a generation and transmission system that can cope with the expected growth in afternoon peaks, there are currently few incentives in place to reduce these peaks. [...] Extrapolating across Australia, if 33% of the energy buildings use in the late afternoon in summer were shifted to the middle of the day, that would deliver new peak capacity in the energy market of almost 12 gigawatts (GW). [...] If Australia’s buildings shifted 33% of the energy they use in the late afternoon in summer to the middle of the day, that would deliver new peak capacity in the energy market of almost 12 GW, the equivalent to boosting the output of Australia’s coal, gas and hydro power stations by around 25%.10 Consumers could also save $1.7 billion per year on their electricity bills if they were able to access. [...] A concerted government program to develop the demand side in the NEM might be able to organise load shifting in 30% of institutional grade office buildings in 2025 and 60% in 2026 and 90% in 2027 if work starts in late 2024.11 The core of this market development would be a commitment for all large government buildings to load shift by the end of 2025. [...] In June 2020, in response to a rule change co-sponsored by the Australia Institute, the Australian Energy Market Commission changed the NEM rules to allow demand responses such as load shifting to bid into the wholesale market.17 However, it may be that the procedures created by the Australian Energy Market Operator (AEMO) to govern participation in the demand response market are a barrier to load.