A Transforming Energy System
Energy systems around the world, including Australia, are
undergoing a transformation in the way that electricity is
generated and consumed. Traditionally, energy has been produced by
large, centralised generators (such as hydro, coal and gas) and
transported to consumers through transmission and distribution
networks, as illustrated in Figure 1. Electricity flowed in one
direction, and there were few resources to coordinate for the
Australian Energy Market Operator (AEMO).
However, Distributed Energy Resources (DER) are shifting
the way our electricity systems operate and the role of
AEMO in coordinating resources. DER are small-scale resources that
can use, generate or store energy at homes or businesses. The most
common example is rooftop solar but can also include electric
vehicles (EVs), at-home batteries and even smart appliances such as
schedulable air conditioning. Energy systems are changing from
being centred around
