Australia’s 10 million energy consumers are missing out on $1.1 billion a year in savings due to underinvestment in voltage management technologies on the energy distribution grid, according to Australian-based global power electronics manufacturer EcoJoule Energy.
Voltage control issues are also destroying about $317 million worth of appliances each year.
While governments and network operators are investing billions in infrastructure like synchronous condensers across Australia to enhance transmission-level grid stability, this investment will do little to help consumers affected by energy waste and appliance damage caused by inefficiencies in low-voltage distribution networks.
Analysis by EcoJoule found implementation of a nationwide Conservation Voltage Reduction (CVR) program would save the average customer about $110/annum1 on their electricity bill, while increased appliance life would result in savings of about $35/annum2 per customer.
EcoJoule Energy Founder & CEO Mike Wishart said the continued growth of rooftop solar, electric vehicles, and home electrification was expected to add further pressure on the distribution grid over the next decade.
“We’re investing heavily in transmission infrastructure, but the reality is most Australians experience the grid at the distribution level. If we don’t address voltage inefficiencies there, households will continue to miss out on significant savings while absorbing unnecessary costs. Without targeted investment in voltage management, these inefficiencies will compound and become even more costly for consumers.”
“This isn’t just about energy waste, it’s about real dollars lost by households every year and avoidable damage to appliances. Smarter voltage management is one of the most immediate and cost-effective ways to return those savings to consumers.”
The problem of overvoltage on distribution grids is increasingly recognised worldwide, with EcoJoule recently completing several installations of its EcoVAR STATCOM in the UK, Europe, and Asia. EcoVAR is a static compensator mounted on existing power poles using power electronics and software to correct grid voltages.
EcoJoule last year secured a $15 million investment, led by Ellerston Capital and the Clean Energy Finance Corporation (CEFC), to expand the rollout of its platforms across Australia and the world. EcoVAR STATCOMs have now been installed on four different continents.
EcoJoule Strategic Advisor and Director of the Energy Futures Network at the University of Wollongong, Ty Christopher, said more efficient use of scarce energy resources would contribute to the energy transition.
“The cheapest and cleanest energy is the energy that never has to be used in the first place,” he said. “Managing overvoltage means less energy is wasted and more clean solar energy can be exported.”
“Many of the challenges affecting reliability and renewable uptake are occurring on the distribution system,” he said.
“If we do not start approaching stability issues on the distribution grid with the same enthusiasm as the transmission grid, reliability will continue to decline.”
“While large-scale assets provide essential inertia and support the bulk power system, they are not designed to resolve the highly localised issues that arise on distribution feeders.
“These include voltage rise from rooftop solar, imbalances between phases and fluctuations that occur in real time as demand and generation shift.
Distributed STATCOM technology is increasingly being deployed to provide that capability. EcoJoule Energy’s EcoVAR system, a pole-mounted STATCOM, delivers real-time voltage control and reactive power support at the feeder level, helping stabilise networks and improve overall performance.
“EcoVAR allows utilities to manage voltage and reactive power dynamically, right where the problem exists,” Dr Wishart said. “It complements transmission level investments by extending stability across the entire network.”
EcoJoule Chief Commercial Officer Martin van der Linde said the shift in grid dynamics was driving a need for more balanced investment across both transmission and distribution.
“Network operators are seeing growing constraints at the edge of the grid,” van der Linde said. “If we want to continue connecting solar, EVs and new loads, we need to invest not just in the transmission backbone, but in the distribution network that connects directly to customers.”
He said distributed solutions provide a practical and cost-effective way to address these challenges while maximising existing infrastructure.
“Targeted deployment of distributed STATCOMs can improve power quality, unlock additional capacity and reduce the need for large-scale upgrades,” Mr van der Linde said. “It is about getting more value from the network we already have while supporting future growth.”
A coordinated approach that combines transmission-level assets, such as synchronous condensers, with distribution-level technologies will be essential for maintaining a stable and reliable grid.
“Grid stability is a whole system issue,” Dr Wishart said. “Investment needs to reflect that by supporting both the transmission network and the distribution network, where much of the change is happening.”
The company, which was established over a decade ago, currently has both local and international customers, including Endeavour Energy, UK Power Networks (UKPN), CLP Power (Hong Kong), Essential Energy, Ausgrid, SA Power Networks and AusNet Services.
EcoJoule has also developed EcoSTORE, a battery energy storage system (BESS) that absorbs excess solar energy and releases it when needed, while also improving the grid power quality for consumers using the same voltage stabilisation technology.
ENDS
Media enquiries to:
Ben Ready
RGC Media
0415 743 838
ben@rgcmm.com.au
References
- AER RIN data excluding HV connections and using AEMC analysis of national average residential retail electricity price ($0.28c/kWh)
- https://documents.uow.edu.au/content/groups/public/@web/@eis/@secte/documents/doc/uow278855.pdf