On 30 April, C4NET hosted its fifth webinar from the Enhanced System Planning (ESP) Webinar Series, focusing on how industry can harness smarter distribution networks for a future-ready grid.
The webinar discussed the transition to smarter distribution systems, the need for integrated system planning to evolve to capture the value of active distribution networks, lower transition costs, the benefits of integrating flexibility and investment into distribution systems and the importance of coordinated planning and regulatory frameworks to optimise system costs and ensure grid resilience.
Hosted and moderated by C4NET CEO James Seymour, the webinar included presentations from Professor Pierluigi Mancarella from the University of Melbourne and Charlotte Eddy from AusNet Services, followed by a Q&A session.
James Seymour discussed C4NET’s Enhanced System Planning (ESP) Project and its focus on expanding the Australian Energy Market Operator’s (AEMO) Integrated System Plan (ISP) to include distribution system considerations, and balance transmission and distribution planning for the lowest overall cost. The ESP research is nearing completion and results are expected to be published soon.
Here are the key takeaways from the webinar:
Professor Pierluigi Mancarella Presented First Outputs from the ESP project
- In the first public presentation of the ESP’s outputs, Professor Mancarella discussed the shift from traditional passive distribution networks to active distribution systems, driven by the integration of distributed and consumer energy resources (DER and CER).
- He described the concept of a Copernican Revolution in grid management approaches, moving from a supply-centric to consumer centric approach.
- The Professor outlined how an active distribution system with both active generation and flexible demand will create opportunities for economic optimisation and system flexibility.
- He further emphasised that the integration of distribution and transmission planning is essential to extract value from distributed resources and manage large-scale renewables effectively.
Challenges and Opportunities in Active Distribution Systems
- During his presentation, Professor Mancarella explained the need for visibility and controllability at the distribution level to interact effectively with the transmission grid.
- He discussed the role of a Distribution System Operator (DSO) to manage active distribution systems and facilitate interaction with transmission grids.
- As shown by his presentation, the integration of distributed and transmission planning will be crucial to avoid effectively building two separate grids and capture the full value of DER.
- The methodology developed by the ESP includes bottom-up modelling to assess the flexibility and cost of DER, with a focus on low voltage networks for electrification and CER.
AusNet’s Charlotte Eddy Presented on Sub-Transmission Investments
- Charlotte Eddy discussed AusNet Services’ investments in the sub-transmission network to unlock large-scale generation connections.
- Their four proactive investments include line upgrades and the addition of a parallel line, with a total cost of these projects amounting to around $156 million to unlock around 950 megawatts of potential connections.
- According to Charlotte, their investments deliver significant wholesale market benefits and lower CO2 emissions, with three of the four projects already in the regulatory process.
- This case study showed that the theory and modelling of the ESP is supported by real world application for this particular example featuring Ausnet’s distribution network.
Regulatory and Economic Considerations
- During her presentation, Charlotte highlighted the challenges of securing cost recovery for sub-transmission investments within the current regulatory framework.
- She explained that the lack of certainty in cost recovery continues to present barriers to immediate implementation, despite the economic justification of the projects.
- Charlotte emphasised that the integration of sub-transmission investments into the integrated system plan is crucial for regulatory approvals and cost sharing.
- Following customer consultation, AusNet Services is including the four projects in their price review submission for 2026 – 2031 but see the need for a longer-term approach for their customers to fairly capture the system level benefits their network investment has provided.
Q&A Session: Industry and Regulatory Perspectives
- James, Professor Mancarella and Charlotte addressed questions from the audience, exploring the role of DSOs, the value of dynamic operating envelopes, and the need for integrated system planning to further evolve
- Their answers emphasised the importance of aligning incentives to lower costs and improve system flexibility.
- The need for rapid regulatory changes to accommodate the fast-moving landscape of energy demand and generation was highlighted.
- All panellists agreed on the importance of proactive planning and the potential for significant cost savings through integrated system management.
For the full webinar recording, please go to C4NET’s YouTube Channel here.
Join us for Webinar 6!
This webinar was part of C4NET’s Webinar Series: Designing a Whole of System Approach to Energy Planning in Australia, which is designed to spark conversations and share valuable insights into comprehensive system planning.
C4NET will be hosting its sixth and final webinar of the ESP series in June. Keep an eye on your emails for topic and speaker announcements!