Anything small consumers can do to manage their supply and demand

2. DER can refer to distribution level resources, which produce electricity or actively manage consumer demand e.g. solar rooftop PV systems, batteries, and demand response like hot water systems, pool pumps, smart appliances and air conditioning control. Increasingly, we recognise that these resources will be aggregated and actively managed. While these resources are located within the distribution network, there are system wide opportunities and challenges.

3. Anything small consumers can do to manage their supply and demand

4. DER penetration and forecasts • International comparisons  • Network upgrades (costs and benefits) • Equity implications  • Tech challenges (e.g. voltage and frequency control) • Consumer protections  • Tariff reform  • Valuing DER services • DSO and trading platform models • Microgrids and embedded networks  • P2P trading and blockchain  • EV integration • Govt subsidies and rebates • interaction with housing EE advocacy  • Community energy including solar gardens and community batteries  • Retail products innovation 

5. We see enormous potential for DER to benefit Australian energy consumers, by  • Speeding up decarbonisation. • Reducing new infrastructure needs. • Increasing choice and control. • Reducing  prices. • Increasing system resilience. We also acknowledge that there are significant challenges in the transition to a high DER energy system, including • Technical challenges — e.g. in managing high reverse energy flows. • Regulatory challenges — e.g. in creating distribution system operators and trading platforms. • Deciding who pays for the transition, and how. • Ensuring that the benefits of DER accrue to those who are unlikely to be able to invest directly in DER kit (S&B), including renters, apartment dwellers and low income households. The RT DER group is an ongoing but ad hoc and non-binding forum for discussing the opportunities and challenges created by the DER transition.

6. Distributed Energy Integration Program (DEIP) • A collaboration to maximise the value of customers’ distributed energy resources to the Australian energy system for the benefit of all energy users.

7. DER Functional Maturity is an Evolution System Planning & Oversight Customer Engagement, Insights and Protections Integrated Regulations DER Orchestration (Aggregators) Metering & Settlement Connection Management Technology Innovation Local Constraints Balancing DER Installation & Management Enhanced Visibility & Control DER Exchange Valuation Frameworks System Security (T+D) Information Sharing & Analysis Sub-Seconds Years Days Minutes Seconds Post Real Time

8. Functional Maturity Assessment

9. DEIP Priorities CUSTOMER MARKETS FRAMEWORKS INTEROPERABILITY Grid Connections Management Enhanced Visibility & Control Cyber Security Customer Insights Data & Information Distributed Energy Equity VPP Enablement Demand Response Integration Distribution Level Optimisation DER Value Assessment Consistent DER Valuation Techniques Regulatory reforms arising from increasing DER

10. How to get involved… Stakeholders (customers, government, industry, international expertise) Secretariat Forming Forward planning for DEIP Stress testing initiatives Steering Group (agrees priorities and processes for engagement ) Secretariat (coordination & knowledge sharing) Steering Group Solidifying Consensus oriented Builds cross-collaboration KS and DEIP Dives Two-way knowledge sharing Delivering Activating key stakeholders Sharing Learnings

11. Customer DEIP Dive Opportunity Areas On the following slides, a summary of the 10 key opportunities that were proposed at the DEIP Customer Workshop is further outlined. These 10 opportunities have been categorised into the themes below: Customer Insights and Research Energy Equality • Customer insights ci-Lab • Clarity of simpler choice • Energy as essential service: break the split incentives • DER for public housing Information and Data Rights Demonstration • Myth Busting • Trusting Data • Energy Made Easy 2.0 • Tailored Tariffs • Battery aggregators • VPP engagement

12. Based on the engagement and feedback at the Customer DEIP Dive, we’re progressing with the following four steps: Obtain additional feedback - collate any additional feedback from attendees at the workshop and consider holding a follow up call in early 2019. Would you find it useful to have regular meetings as part of a ‘DER customer reference group’ to discuss relevant initiatives and ongoing projects? Outcomes from this workshop will be shared with DEIP steering group and used to refine the DEIP customer workstream initiatives. Who’s who of customers - conduct a review on the available DER customer segmentation and customer insights research done across the DEIP steering group and other stakeholders, and create a simple and accessible resource that can be leveraged across the sector. Getting to know your customer - create a best practice resource to inform DER product and service providers on how to better understand and communicate with customers. Progress your ideas - discuss and fund opportunities to better understand and support the benefits of DER to customers. Please contact the ARENA to discuss. What’s next?

13. Work underway Possible areas for reform • 10. Network revenue regulation • Beyond totex to whole system optimisation • Performance-based regulation • 10. Network revenue regulation • AEMC’s Economic Regulation Framework reviews • KPMG report (2017-18), DREP program Moving towards a DSO model multi-way transactive grids • 9. Network planning – and T&D interface • Need non-network opportunities planning and competition • 9. Network planning – and T&D interface • ISP but nothing not much activity yet? • 8. Microgrids • Safety and technical operation and regulation • Consumer protection, retail competition, right to connect • Revenue regulation, especially ring fencing • 8. Microgrids • AEMC work on Safety and technical operation and regulation • AEMC on consumer protection?? • 7. Local markets/platforms • Trading between 4, 5 and local capacity • Or optimising before dispatch to wholesale market? • 7. Local markets/platforms • AEMO/ENA Open Energy Networks (DSO white paper 2019) • DeX under development, commercial platforms Wholesale market evolution • 6. Opportunities - Wholesale • VPPs – Multiple Trading Relationships needed? • Demand Response Mechanism • ? Strategic Reserve • 6. Opportunities - Wholesale • AEMO VPP trials – Multiple Trading Relationships needed? • Demand Response Mechanism rule change • ? Strategic Reserve development, post-2022 market work Improvements in network operation with DER • 5. Opportunities – Network constraints • DER for brown/black start, fault response, local constraint reduction • 5. Opportunities – Network constraints • Initial network constraint mapping (ARENA-ISF) – being expanded, ARENA trials • 4. Control/Opportunities – managing Variable RE • FCAS+ expansion • E.g. smart inverter standards, Aggregators? • 4. Control/Opportunities – managing Variable RE • AEMO working FCAS+ expansion Essential Foundation – for system stability and preventing damage • 3. Dynamic control – to prevent network damage in real time • real-time constraint software • - others? • 3. Dynamic control – to prevent network damage in real time • Evolve software trials (ARENA/QLD/NSW) • 2. Visibility – of DER and network constraints • Hardware and software, standards • - Through allowances and supplementary funding? • 2. Visibility – of DER and network constraints • Some DNSP investment • 1. Connection • Standards (including remote switching), Register • 1. Connection • AS Standards development, DER Register under development