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Power to the people: Evolutionary market pressures from residential PV battery investments in Australia

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  • Say, Kelvin
  • John, Michele
  • Dargaville, Roger

Abstract

Falling costs of solar PV and battery technologies are continuously changing the customer relationship with their electricity network. By managing their own self-generation, customers are able to place natural selection pressure on utilities to evolve. The devised techno-economic simulation model projects residential PV and battery investment decisions over 20 years in Perth, Australia to quantify the potential market impacts from policy and customer investment conditions. Using real-world demand and insolation profiles from 261 households, this research evaluates how cumulative customer PV and battery investments changes the network and market operating conditions, while under the influence of various feed-in tariff values. The results indicate that high feed-in tariff policy costs in the short-term, make it economically challenging to prevent or restrain significant residential PV-battery adoption in the longer-term. Moreover, continuous increases in residential PV-battery system installations eventually lead to annual net-exports substantially exceeding net-imports on the distribution network. This significant shift in network operation provides an opportunity for policymakers to utilise behind-the-meter PV-battery investments and decentralised energy markets to meet wider renewable energy and decarbonisation goals.

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  • Say, Kelvin & John, Michele & Dargaville, Roger, 2019. "Power to the people: Evolutionary market pressures from residential PV battery investments in Australia," Energy Policy, Elsevier, vol. 134(C).
    • Handle: RePEc:eee:enepol:v:134:y:2019:i:c:s0301421519305646
    DOI: 10.1016/j.enpol.2019.110977
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    6. Jonathan Doh & Pawan Budhwar & Geoffrey Wood, 2021. "Long-term energy transitions and international business: Concepts, theory, methods, and a research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 951-970, July.
    7. Rezaeimozafar, Mostafa & Monaghan, Rory F.D. & Barrett, Enda & Duffy, Maeve, 2022. "A review of behind-the-meter energy storage systems in smart grids," Renewable and Sustainable Energy Reviews, Elsevier, vol. 164(C).
    8. Brodnicke, Linda & Gabrielli, Paolo & Sansavini, Giovanni, 2023. "Impact of policies on residential multi-energy systems for consumers and prosumers," Applied Energy, Elsevier, vol. 344(C).
    9. Best, Rohan & Li, Han & Trück, Stefan & Truong, Chi, 2021. "Actual uptake of home batteries: The key roles of capital and policy," Energy Policy, Elsevier, vol. 151(C).
    10. Wilkinson, Sam & Maticka, Martin J. & Liu, Yue & John, Michele, 2021. "The duck curve in a drying pond: The impact of rooftop PV on the Western Australian electricity market transition," Utilities Policy, Elsevier, vol. 71(C).

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