'Low-hanging electrons' ripe for harvesting lower bills

Australia is being urged to bring in new standards for smart air-conditioning to cut power bills. (James Ross/AAP PHOTOS)

Many consumers are willing to change their heaviest electricity use to save money but only a quarter of a million households have signed up to voluntary programs with their energy retailer.

In a research report released on Tuesday, energy expert Gabrielle Kuiper has called for the federal government to follow the US, the UK and Europe and bring in new standards for smart air-conditioning.

Heating and cooling accounts for about 40 per cent of energy use in an average Australian home.

Demand on the power grid is expected to rise with more extreme temperatures and as gas systems are replaced with electric appliances.

"We're moving to a world where the vast majority of supply comes from variable renewables and so, as we get weather-dependent on the electricity supply, we need greater flexibility with our demand," Dr Kuiper told AAP.

A residential power meter
Demand on the power grid is expected to rise with more extreme temperatures.

She said energy use needed to "flex" more to meet available supply, rewarding households for switching off appliances - whether manually or automated - when prices spiked.

"But it requires a major change in the government mindset because they're used to regulating for energy efficiency and this is expanding that to include flexibility as well," Dr Kuiper said.

She called these potential savings the "low-hanging electrons" because they did not require major or expensive changes.

For example, many existing air-con units could be managed remotely by adding a relatively inexpensive smart thermostat, she said.

While energy companies could take advantage of big fluctuations in prices, she said most households could not move their energy use and gain a reward in the same way.

Dr Kuiper found AGL and Origin offered "demand response" options for households with smart meters, while 30,000 Amber Electric customers were on plans that encouraged them to turn appliances on or off as prices fluctuated.

Making it so dynamic might be new but the concept of matching demand and supply was not, she said, with ripple control of hot water introduced more than 70 years ago to manage peak demand on coal-fired plants.

"It is far cheaper to flex household appliances than a coal-fired power station," Dr Kuiper said.

As more appliances with flexibility entered the system, a bigger pool of resources would be available for companies to compete by making various offers to consumers.

"So consumers get more choice ... and, hopefully, a greater financial reward," she said.

"We need lots of storage in the system, lots of electric vehicles in the system but we need all the flexible appliance use - both household and business - that we can get as well."

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.


Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
AU$10
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
AU$5
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
AU$99
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

SEVEN DAYS FREE
Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store