How ‘neighbourhood’ is taking on a whole new meaning in our reimagined energy future.

When we think of neighbourhoods, we typically think of people who live next to, or across from us. But in the world of energy, neighbourhoods are starting to mean something else entirely.

We tend to take for granted the energy systems that power our homes and workplaces; we turn on a switch, and expect the room to light up, the blender to switch on, or the Wi-Fi to connect. But what if some of those functions, so central to our everyday lives, were powered by you? And what if, after losing power in a storm, you could release your own supply to get your lights back on, using technology you already own such as batteries, a hot water system, or electric vehicle (EV), and send the rest back to your community?

This isn’t far-fetched thinking, with people around the world already beginning to participate in a more resilient and multi-directional energy market through assets like EV chargers, solar panels, hot water cylinders and air conditioning systems. Now, people can use these devices to generate or store their own electricity, reducing bills, releasing surplus back to the network, or even sharing electricity with neighbours.

Counties Energy has been quietly preparing for such a future for years. The expectation is that customers will actively participate in the energy market as ‘prosumers’, rather than simply as an end-user, or recipient.

This multi-directional approach is called a Distribution System Operator, or DSO. Counties Energy, by adding DSO capabilities to its existing one-way model (called a Distribution Network Operator, or DNO), will act more like a conductor of an orchestra, coordinating the generation, storage, distribution, and consumption of energy from multiple sources in this new system.

Not only will people have more choice in how and when they consume energy, but the DSO model will also accelerate the country’s move away from fossil-fuels (such as coal or gas) to low emission sources that help meet our carbon zero goals and are better for the planet.

The future looks different to the past

It’s a big shift from how energy has been delivered in the past, where it was generated at fixed sources, then passed at high voltage along distribution networks, before being converted to low voltage in substations, and from there, into people’s homes and businesses through overhead or underground lines.

But what worked in the past won’t work in the future, as rates of EV ownership, solar panels, batteries and other smart devices soar in popularity. Customers need the electricity network to be able to flex and deliver large amounts of power unlike anything a typical home or business has required before.

EECA, the Energy Efficiency and Conservation Authority, estimates that if people get home after work and plug in an EV for example, their typical household load is going to increase by 20-30%, often right at peak time[1]. Extrapolate that out as EV adoption grows, and it’s clear that’s a significant ask of the network.

What’s more, while New Zealand’s electricity generation is around 80-85% renewable[2], if demand peaks too high, it needs to be topped up by fossil fuelled gas and coal-fired generation – which is not only more expensive to buy and build, but has higher emissions and ongoing, costly infrastructure needs.

However, if the network is able to manage these loads through incorporating customer-owned, clean energy sources, particularly during busy times like a winter’s evening, then these challenges are greatly reduced.

As New Zealand’s population and electricity requirements increase, it’s clear that the resilience and reliability of our future energy supply lies in taking advantage of new technology.

Coordinating the neighbourhood

New technology brings with it increasing amounts of data, so finding a way to utilise this in the most efficient and beneficial way possible, is crucial. That’s why, sitting at the centre of Counties Energy’s DSO model is software platform, Plexigrid.

For Counties Energy, Plexigrid collates network topology information, asset ratings, smart metering data and statistics on the operational state of the network with data from other sources, such as OpenLoop (EV charging Aggregator), to produce forecasts and Dynamic Network Envelopes (DOEs) that help manage the network’s load. It can also facilitate scenario planning, which allows for better operational decisions and network monitoring and management.

Combined, this means Counties Energy can deliver a more productive and efficient energy network.

The work with Plexigrid was made possible by an industry collaboration with Ara Ake and Plexigrid through the ‘EDB Challenge’ initiative. Counties Energy received some funds to trial this innovative solution that will form a vital part of its DSO journey.

The end game of the DSO, of course, is more efficient use of the network’s capability, so it can better flex and stretch to accommodate the energy load, keeping costs down for everyone, and supporting modern, renewable electricity sources.

Less waste, better control for consumers, and improved grid resilience and reliability, are all expected outcomes of Counties Energy’s new DSO/DNO combined model. It’s a connected neighbourhood that brings to life a more resilient and sustainable energy future.

[1] Residential smart EV chargers and demand flexibility | EECA

[2] https://www.eeca.govt.nz/insights/energys-role-in-climate-change/renewable-energy/