It has been observed that numerous property developments such as airports, apartment buildings, and even shopping centres have implemented the use of an Embedded Network (EN) into the infrastructure. As a matter of fact, there has been a rise of 500 large-scale and thousands of other small-scale networks across Australia, indicating its growing popularity as a cost-effective and efficient method of contracting energy supply for a particular site.
On the other hand, its utilisation even goes beyond commercial establishments. With the advantage of bulk buying electricity from suppliers, even residential housing developments are starting to operate with such. This allows reductions in expenses on emerging generation technologies such as energy storage and solar PV. Consequently, enhancing its value proposition further through a rise in the capacity to regulate electricity demand levels at the connection point to the main power grid.
With so many opportunities to its use, Australia is now on the verge of a new frontier to managing energy supply. If you do wish to know more about this, you may continue reading.
WHAT IS EN ACTUALLY?
The Embedded Network in Australia aggregates consumed energy within a particular complex to a single metered point linked to the central electricity network. Commonly used in seaports, airports, shopping centres and residential apartment buildings, this has two plausible arrangements for the delivery of wholesale and metering services.
Firstly, services are provided by an Embedded Network Operator who may not be an authorised provider or retailer. This is otherwise known as an off-market activity. Secondly, the on-market activity is managed by an authorised retailer of your own choice. However, you still get services from the ENO.
WHY CHOOSE EN?
The Embedded Network Australia land developments choose, have a number of advantages which you might find beneficial. This includes an opportunity to earn revenue through the management and operation of an EN, reduce network connection charge, negotiate the dedicated retail rate, and represent a group for more bargaining power.
Generally, this means you get to save a huge sum, and who wouldn’t want that?
WHAT DOES THIS MEAN FOR NETWORK PROVIDERS?
Most likely, with the emergence of its popularity, network service providers will be impacted by the reduction of connection charges, low regulated asset base or RAB growth, and low distribution use of system or DUOS charge.
Unlike conventional development where you are charged for each metering point, EN gives you the opportunity to get lower metering and connection charges. This means that only the parent connection, which may be further reduced, is charged.
Meanwhile, a lower RAB growth would most likely be a key risk if developers would choose to implement a good number of ENs with a dedicated network into their infrastructure. With a potentially low regulated asset base in the near future, it is projected to have a cumulative reduction in growth of up to $2.3 billion by the year 2021 across Victoria, New South Wales, and Queensland.
On the other hand, lower DUOS charges would most likely emerge only when an existing Embedded Network is installed with a form of Distributed Energy Resources or DER. Since energy storage and solar PV costs are on a downward trend, this may become an attractive proposition for many.
An EN allows a single bulk energy contract to supply power to a particular site. This enables small entrepreneurs to take advantage of lower costs. If you happen to consider such idea, you can find solutions for the best Embedded Network Australia has to offer through the ENM Solutions for your managerial and consultancy needs. For more details, check out this at https://www.enmsolutions.com.au/industry-insight/what-is-an-embedded-network/