The real stinger for local power generation projects is that, even though they may only use a local part of the distribution network (if the power they generate is consumed nearby) this is not reflected in tariffs. What the consumer pays, the socket price, has a significant component that pays for building of long distance transmission networks. Not just that – they also pay for the power losses in those networks. Together this can be 10-20%
There is rising pressure for a rule change that will fix this and a number of schemes supported by ARENA, the Australian Renewable Energy Agency, seek to provide evidence to support such change.
This makes very interesting reading on the ARENA site. In particular note how this work seeks to generate evidence
Is this what we need in Newstead?