Cost Benefit Analysis
Project EDGE releases Independent Cost Benefit Analysis
Project EDGE’s Independent Cost Benefit Analysis (CBA) assesses the costs and benefits associated with NEM-wide implementation of the demonstrated DER integration model using evidence from Project EDGE.
Independent findings from Deloitte Access Economics show that greater coordination of active DER in the NEM will result in an incremental benefit of up to $5.15 - 6.04 billion over the next 20 years in reduced cost to all electricity consumers, and an additional societal benefit of $3 billion in emissions reductions. The findings demonstrate that all consumers stand to benefit from the accelerated and optimised integration of active DER via Virtual Power Plants (VPPs) in the NEM.
Project EDGE releases final CBA Methodology
Project EDGE is pleased to announce that the independent Cost Benefit Analysis Methodology is now available.
Project EDGE presents the methodology that will underpin the Cost-Benefit Analysis (CBA) completed by Deloitte Access Economics and Energeia. The work in this report represents a highly consulted and researched outline of the planned approach to undertaking Project EDGE’s cost benefit analysis.
The purpose of the CBA for Project EDGE is to identify and analyse whether the implementation of an operational DER marketplace is in the long-term interests of consumers consistent with the NEO and under which conditions. The CBA will also assess under which scenarios adding more complexity and sophistication to the DER marketplace may be justified.
Cross industry feedback from stakeholders has been incorporated into this report, following a public consultation phase undertaken in mid-2022 seeking to increase the robustness of the CBA’s approach. While some aspects of the CBA are subject to change before the final version of the analysis is released, this work presented in this methodology is a comprehensive overview of the planned work program.
CBA analysis and modelling will occur over the period December 2022 to February 2023, with CBA Report finalisation in late March 2023.
Deloitte Access Economics has been commissioned by AEMO, AusNet Services and Mondo to conduct an independent Cost-Benefit Analysis (CBA) as part of Project EDGE, a multi-year project to demonstrate an off-market, proof-of-concept Distributed Energy Resources (DER) Marketplace.
Project EDGE CBA Methodology Consultation Paper
Project EDGE is seeking feedback on the draft methodology that will underpin the Cost-Benefit Analysis (CBA), as outlined in this report. Engagement with stakeholders on the draft methodology provides an early opportunity to test and challenge the robustness of the CBA’s approach and underlying assumptions as well as a means of capturing additional information and views on methodology inputs, including costs and benefits.
Deloitte Access Economics has been commissioned by AEMO, AusNet Services and Mondo to conduct an independent Cost-Benefit Analysis (CBA) as part of Project EDGE, a multi-year project to demonstrate an off-market, proof-of-concept Distributed Energy Resources (DER) Marketplace.
The purpose of the CBA for Project EDGE is to identify and analyse whether the implementation of an operational DER marketplace is in the long-term interests of consumers consistent with the NEO and under which conditions. The CBA will also assess under which scenarios adding more complexity and sophistication to the DER marketplace may be justified.
Questions for consultation are raised throughout the methodology report and a consolidated list is provided in Appendix A (Page 78). These questions provide insight on the following focused consideration topics:
- Roles and Responsibilities
- Visibility
- DER Scalable Data Exchange
- Local Services Exchange
- Dynamic Operating Envelopes
Project EDGE encourages stakeholders to comment more broadly on any aspect of the methodology, including elements which may not be captured in the draft methodology as presented.
The draft CBA methodology paper for Project EDGE is presented for consultation until 5pm AEST on Friday, 5 August 2022. Stakeholders are encouraged to review the draft methodology and provide written feedback to EDGE@aemo.com.au, emphasising response to the consultation questions called out.
The Project Team welcome open feedback as well as requests for discussion during this period, as broad and transparent collaboration is essential to the completion of this work.