AEMO Announces Open-Source Operating System For World-Leading Distributed Energy Marketplace Design Trial

Energy Web to provide the open-source operating system, Microsoft to provide cloud services, and PXiSE to provide market logic software, with local aggregators Mondo and network operators AusNet

MELBOURNE, Australia and ZUG, Switzerland, Sept. 2, 2021 /PRNewswire/ -- The Australian Energy Market Operator (AEMO), Australia's power system and market operator, has announced the architecture and technology partners for Project EDGE, a flagship initiative enabling distributed energy resources (DER) to provide both wholesale and local network services at enterprise scale within an off-market trial environment. The DER Marketplace solution will be developed in partnership with local market participants AusNet Services and Mondo, and technology providers Energy Web, PXiSE, and Microsoft.

Australia leads the world in adoption and deployment of distributed energy resources (DERs), with nearly one in four homes featuring rooftop solar, and up to 40% in some states (South Australia and Queensland).

Combined with the rapid growth of energy storage, demand-side management, and utility-scale renewable generation, the Australian grid is transforming into a decentralized system in which consumer-owned DERs play a pivotal role. This has created challenges for AEMO and distribution network operators in balancing and protecting the grid, but also creates new opportunities for consumers and other market participants to create value by supporting the energy transition with their DERs.

In response, AEMO has established a DER program to enable the transition from one-way energy supply to a world-leading system that maximizes the value of DER for all consumers through digitization and integration of DER into Australia's power systems and markets.

Under project EDGE, AEMO is collaborating with Mondo and AusNet Services, with input from the broader energy industry, to demonstrate via a proof-of-concept trial how aggregated fleets of DER can deliver multiple energy services at scale at both wholesale power system and local network levels.      

This project will provide AEMO and its partners with technical and operational experience to inform evidence-based changes to regulatory and operational processes to effectively manage Australian electricity grids and markets with increasing levels of DER participation. Additionally, EDGE will focus specifically on understanding consumers' perspectives and preferences in selling their DER capacity to aggregators for use in energy markets.

AEMO Chief Markets Officer, Member Services, Violette Mouchaileh, said: "Project EDGE aims to build understanding of and inform the most efficient and sustainable way to integrate DER into the electricity system and markets, allowing all consumers to benefit from a future with high levels of DER. There is no existing product that meets all high-level requirements for the DER Marketplace, so Project EDGE is at the leading edge of product development in this space."      

Jesse Morris, CEO of Energy Web Foundation, added: "Australia is way ahead of the curve in the deployment of DERs. AEMO's vision and ambition in future-proofing its energy grid can be replicated as other countries pursue similar decarbonization goals. This shared challenge is what makes an open-source infrastructure purposefully designed for the energy sector the best solution for tomorrow's energy markets."

The EDGE Project is being supported by the Australian Renewable Energy Agency (ARENA), with AEMO receiving almost $13 million in funding for the project. ARENA CEO Darren Miller said at the time that this landmark trial would provide the blueprint for integrating DER into the grid.

Australia's EDGE project will begin testing services in April 2022, with project completion in March 2023.