The role of electricity distribution networks, in particular the Essential Energy network, has become the focus of some much needed discussion on how to effectively and equitably transition the energy sector.

The Australian Energy Market Operator (AEMO) published its 2024 Integrated System Plan (ISP) in June, outlining electricity generation, consumption and storage forecasts out to 2050. For the first time, this included the recognition of a greater role for distribution network service providers (DNSPs) in supporting the transition. The key opportunities identified are greater optimisation of Customer Energy Resources (rooftop solar, batteries and electric vehicles), asset augmentation to maximise capacity for utility-scale generation and unlocking the capacity in the existing network. It is affirming to have the role of distribution networks recognised and supports our need to continue advocating for regulation reform across the energy sector in order to make the transition faster and fairer for all of our customers.

In line with this, we recently released a report outlining the results of a six-month assessment of the thermal capacity of our sub-transmission network. The report was a feature of the keynote address that I delivered in August at the Regional Australian Institute’s National Summit in August held in Canberra. The assessment identified that we have over 8 gigawatts (GW) of hosting capacity for renewable generation (solar and wind) across six areas within our network footprint located near Dubbo, Albury, Marulan, Tamworth, Yass and Wagga Wagga. This means that there is the ability to help maintain reliability and security of our power supply while giving time for the construction of new transmission infrastructure to support Renewable Energy Zones.

By using Essential Energy’s existing easements and rights of way, there would be minimal impact on landholders and communities. We are actively engaging with key stakeholders to advocate for leveraging existing electricity distribution infrastructure for faster and fairer connections of renewable energy generation projects across our footprint.

Essential Energy has also been engaged in bargaining with unions on our Employee Agreement (EA). Essential Energy has been in consultation with employee representatives since May 2024 and presented an initial offer on 11 July after careful consideration of the more than 160 individual matters listed in the union’s log of claims. This initial offer was not accepted. A revised offer was presented on 28 August 2024. Essential Energy's revised offer provides our employees with a fair pay rise as well as improving terms and conditions of employment for our employees in areas that matter most. We listened to employee feedback from engagement surveys and during the bargaining process, while considering our organisational strategy and the economic impact of increasing costs on households, businesses and communities. Protected Industrial Action commenced on 8 August, which is disappointing but consistent with what has occurred across the industry in recent months. Bargaining discussions continue to be constructive and will continue throughout any period of industrial action.

I was delighted to see our next cohort of apprentices and trainees graduate during a gala ceremony at Port Macquarie on 15 August which recognised their achievements. There was a 355 per cent increase in the number of applications for our 2025 apprenticeship program, so a much-deserved congratulations to apprentices and trainees who have been outstanding in all aspects of their training and have consistently demonstrated Essential Energy’s core values and ethics to our customers and communities. With the rapidly changing energy industry, they are the workforce of the future who will learn innovative skills and work on technologies like batteries, stand-alone power systems and microgrids that a generation ago would have only dreamed of.

I was also proud to see the Life Skills Program rolled out to all apprentices for the first time this year. This program saw us partner with the regional NSW mental health and wellbeing organisation, Tradies InSight to provide apprentices with the skills to navigate work, financial, family, and friend-related stresses effectively.

From a future energy point of view, our innovation team conducted a four-week trial of a streetlight EV charger to test the concept of low-impact, convenient charging in regional NSW. The prototype was installed in Port Macquarie in May to test an innovative way to increase charging options for residents and visitors to regional, rural and remote communities. The fully integrated custom design was developed through a partnership with EV charging company, EVX and composite pole manufacturer, Wagners.

Essential Energy has also partnered with Origin Energy to install pole-mounted batteries in several regional NSW communities. Wagga Wagga was one of the five communities chosen for the compact energy storage trial, with Essential Energy completing the installation of seven pole-mounted batteries in July. There will 35 batteries in total mounted on power poles in close proximity to homes in order to capture excess generation from rooftop solar that can be used within the community when there is peak energy demand. The trial seeks to understand how to best use localised energy storage for customers to get the most out of their rooftop solar. The trial is open to customers with or without solar systems. The other communities chosen for the trial are Armidale, Port Macquarie, Dubbo and Bathurst.

In this edition

Distribution the key to a faster and fairer energy transition
Class of 2024 graduates into their energy future
Program provides apprentices with essential life skills
Essential Energy rolls out community-based pole-mounted batteries
Innovative streetlight EV charger goes on trial in Port Macquarie