As populations grow and consumers become more reliant on electricity, it’s essential that energy networks are upgraded to ensure that they have the capacity to meet demand. To assist with delivering these essential upgrades, CitiPower and Powercor have launched an online platform for third-party solutions to network constraints.
When power networks reach their capacity, they usually get a ‘traditional’ network upgrade to supply the extra power that customers need. These works might be a transformer upgrade or an uprated powerline, and these typical ‘poles and wires’ works help utilities to deliver reliable supply to customers.
However, as technologies advance there is potential for new and innovative solutions to be able to deliver similar results using different technology at a lower cost – which in turn could potentially create value or reduce costs for electricity customers.
To explore these options, Victorian networks CitiPower and Powercor have opened up network constraints in a new platform that creates a marketplace for alternatives to traditional poles and wires work.
While the networks have been running tenders for non-network solutions for several years now, over and above the regulated requirements, this is the first using a map-based marketplace solution to make the process easier and more intuitive for bidders.
The online flexibility marketplace was created with global technology provider, Piclo, and offers an interactive map of local network constraints, and more intuitive information about the network needs in a particular area. This allows providers to more easily match their solutions to network opportunities close to them that existing assets or new systems could support.
CitiPower and Powercor are using the flexibility marketplace to offer funding for non network solution providers network‑wide, with several tenders and expressions of interest expected throughout the year asking suppliers to solve constraints at a range of levels and capacities; from as low as a few dozen kilowatts, to tens of megawatts.
The first flexibility tender in the Piclo platform offers hundreds of opportunities for providers across our networks to defer the need for upgrades, and expressions of interest are also encouraged for millions of dollars of opportunities into the future.
Powercor’s Head of Network Planning, Andrew Dinning, said he hoped providers would bid into the tenders to deliver competitive options and keep costs low for customers.
“We’re really keen to see how much the market has matured to help us deliver for our customers at a lower cost than our traditional ‘poles and wires’ alternative,” Mr Dinning said.
“This might include batteries, virtual power plants or demand management programs, we’d love to hear what’s out there today.”
Mr Dinning said Powercor’s constraint data was already open and transparent and now is easier to access than ever through the marketplace.
“Our new platform further enhances our transparency with network upgrades,” Mr Dinning said.
“Anyone can use the marketplace, look at sites we plan to upgrade, and see if they can compete with traditional network solutions to solve network constraints.”
Mr Dinning said Piclo’s Flex product provided an engaging way for networks to interact with third party suppliers on non-network solutions.
“Having seen Piclo’s work with other networks internationally, we’re excited to partner with them in 2024.”
“This project will help to further develop our own capabilities as a Distribution System Operator and open more of our network constraints to build the market for flex in Australia.”
Piclo CEO and co-founder, James Johnston, said the need for grid flexibility has never been more important for networks, with a rapid energy transition, population growth, home electrification, and rise of EVs making flexibility critical.
“We’re thrilled to announce our partnership with CitiPower and Powercor, which signals our launch into Australia, as the country continues to embrace a rapid energy transition and the potential of distributed energy resources,” Mr Johnston said.
“This represents a significant milestone for Australia as it embarks on its flexibility journey.”
Mr Johnston said the flexibility marketplace enables network service providers such as Powercor to source flexible electricity from sellers during times of high demand or low supply.
This not only helps to remove constraints and reduce the costs for networks to serve customers, but also supports in the decarbonisation of grids, providing flexible electricity over expensive bulk power from traditional coal or gas powered sources.
This platform allows Victorian networks to explore third party options to solve network constraints, seeking flex capacity across their networks.
Solutions successful in Powercor’s current tender may be rewarded with multi-year contracts to provide network support that helps to meet the challenges of increasing maximum demand.
Featured image: CitiPower & Powercor Senior Engineer, Pieng Truong (left) and CitiPower & Powercor Head of Network Planning, Andrew Dinning (right). Image: CitiPower & Powercor.
