The Australian Renewable Energy Agency has committed $10 million towards the $32 million rollout of GreenSync Pty Ltd's distributed energy platform.
The company's Decentralised Energy Exchange (deX) software platform acts as a digital marketplace for energy assets and applications from residential and commercial buildings.
It enables consumers to register, for example, their solar PV, batteries, smart conditioners and hot water systems, and make them available to the electricity grid, where they can be used for services such as managing frequency, providing energy for the wholesale market and reducing network constraints.
deX technology could thus become a critical enabler for emerging virtual power plants, in which decentralised energy resources (DERs) are bundled and integrated in Australia's electricity network.
The agency's chief executive officer Darren Miller said in a statement: “Studies indicate that virtual power plants could account for 700 megawatt of capacity by 2022 and consumer-owned distributed energy could account for up to 45% of all generation within two decades".
The rollout will address issues with DERs such as physical integration and visibility with the grid, ensuring networks limits are considered when dispatching, and achieving financial market integration, Mr Miller said.
ARENA recently also announced that it has secured funds to collaborate with the Australian Energy Market Operator in demonstrations of virtual power plants.