Role of Utility and Pricing in the Transition

Abstract

Pricing grid and nongrid services will be a key determinant in how successfully utilities navigate coexistence with embedded generation and storage. This chapter assesses how utilities are responding to this challenge in Australia. Australia has some of the highest uptake rates of distributed generation in the world and until recently, the response of utilities has been slow. The analysis suggests that a reliable supply of electricity will be of significant value to consumers. Utilities are likely to offer a diverse range of products, such as solar leasing, demand tariffs, and storage that reflect the “insurance premium” consumers place on reliability.