Powering affordability, sustainability, and community living
As the energy landscape continues to evolve, embedded networks in Australia are emerging as a transformative solution delivering tangible benefits to both residential and commercial customers. Unlike traditional electricity supply models, embedded networks offer a specialised approach tailored to the unique needs of high-density communities.
At the heart of the model lies a focus on affordability, sustainability, and community-centric living. By using economies of scale and long-term energy contracts, embedded network operators can offer customers lower energy prices.
Embedded networks are also poised to play a pivotal role in the long-term transition to a sustainable energy future. By enabling investments in solar, batteries, and other distributed technologies, these specialised systems unlock the ability to share clean energy resources across communities. This not only reduces emissions, but also empowers residents and businesses to shape a more sustainable tomorrow.
But before we go on, it is important to understand what embedded networks are and how they operate.
What is an embedded network?
An embedded network is a private electricity network that serves multiple customers within a defined area. This can include apartment buildings, retirement villages, caravan parks or shopping centres.
The key features include:
· Single connection point to the main grid, allowing the operator to leverage bulk purchasing power
· Shared investment in community infrastructure like solar and EV charging
· Greater price stability for customers compared to the regular retail market
They are specialised type of microgrid designed to serve the unique needs of high-density residential, commercial, or mixed-use communities. The model allows local networks to combine energy demand and share clean energy resources. Operators include authorised retailers and exempt sellers.
Residents benefit from lower energy prices
One of the key benefits embedded networks provide to residents is lower energy prices. Embedded network operators can offer customers rates that are significantly lower than the default market offer. They do this by leveraging economies of scale and securing long-term energy contracts.
Data shows that embedded network customers can enjoy savings of 30% or more compared to those on standard retail plans. This is through the embedded network operator's ability to bulk purchase electricity and negotiate favourable terms. This shields residents from the ups and downs of the broader energy market.
The example of A 216-apartment residential complex on the central Gold Coast provides a compelling real-world case study of reducing costs for energy in Queensland. The building has high proportion of owner occupiers.
86% of owners on the body corporate committee voted to convert to an embedded network solution. The data shows that these apartment residents are now 30-40% better off financially compared to the default market rate.
The embedded network has also generated over $500,000 in savings in just four years for the strata community. Every apartment owner at the building enjoyed savings of nearly $2,500 over the same four-year period.
This shows how embedded network operators can provide significant cost savings for high-density residential customers.
Embedded network operators can also tailor their pricing structures to the unique needs of a strata community. This can include offering discounted rates for certain usage patterns or incentivising the adoption of energy-efficient technologies.
By prioritising affordability, embedded networks ensure that residents can access more sustainable and cost-effective energy solutions.
Serving the unique needs of strata customers
Embedded network operators are uniquely positioned to serve the specialised needs of high-density residential and commercial communities, such as strata-titled properties. Embedded network operators have deep expertise in managing the complex energy requirements of these community-based environments. Unlike traditional electricity retailers focused on individual customers.
Embedded network operators can tailor their solutions to the specific needs of strata customers. This delivers a more seamless, efficient, and community-focused energy experience. They understand understand the challenges and priorities within high-density living. This allows them to unlock benefits that may not be achievable through a one-size-fits-all approach.
From managing shared infrastructure and distributed energy resources to fostering a collaborative energy culture, embedded network operators can create value that aligns with the unique dynamics of strata-titled communities.
Enabling the clean energy transition
Embedded networks are uniquely positioned to facilitate investments in clean energy infrastructure that benefit the broader community. By aggregating demand and operating at scale, embedded network providers can unlock the capital required to install solar, batteries, and other distributed energy technologies.
This ability to invest in clean energy solutions is a key advantage of the embedded network model. The embedded network operator can spread these infrastructure investments across the entire community. Rather than individual customers bearing the full cost. This not only reduces the financial burden on residents, but also enables the sharing of the clean energy generated.
Embedded networks can also unlock the ability for commercial customers, such as small business in a retail complex, to collectively share in the benefits of onsite solar generation.
For example, a commercial complex located in western Brisbane installed a 100kW solar system with an embedded network. The landlord’s goal was to provide cheaper power to the various tenants occupying the space. By enabling the sharing of solar generation across multiple tenants, the embedded network model delivered approximately 35% reduction in grid energy. It also provided meaningful cost savings and sustainability improvements for the entire commercial complex.
This example provided a win-win for both the landlord and the tenants. It also demonstrates the vital role embedded networks can play in empowering communities to collectively embrace clean energy solutions.
By putting clean energy within reach of everyday consumers and businesses, embedded networks are driving affordability, and sustainability. It also creates a greater sense of community ownership over the energy future.
This transformative change will be crucial to tackling the climate crisis head-on.
Humenergy provides lower cost, more transparent energy solutions for Residential and Commercial Strata Communities. We work with Property Developers and Body Corporates to create win-win energy solutions that benefit developers, owners, and residents alike.
Humenergy purchases the gas in bulk and on-sell hot water to the residents at low energy rates, additionally Hum can supply and install best in class remote sub-metering systems.
If you wish to look into our solutions for Bulk Hot Water and sub-metering, get in touch with the Hum team today.