A new report from RACE for 2030 is calling for a significant overhaul of the country’s energy policy and research focus to create a power system fit for the 21st century.

The report highlights Australia’s world-leading adoption of renewable energy by consumers, with a third of households already generating some of their own power through rooftop solar and other technologies.

Dr Bill Lilley, CEO of RACE for 2030, notes that consumers are currently providing over 10 per cent of Australia’s electricity needs, a figure set to grow substantially.

However, the research indicates that without major changes, Australia risks failing to fully capitalise on this consumer-driven energy revolution.

The report, which analysed nearly 200 Australian studies worth almost $1 billion in research, found that current systems are ill-equipped to handle the projected four to five-fold increase in rooftop solar.

Dr Lilley emphasises the need for a more integrated approach: “A growing proportion of Australia’s Consumer Energy Resources will not be fully harnessed if investments in the underpinning integrated systems needed to unleash their full system-level value are not made.”

The report calls for a shift in focus towards creating a “future-ready operating system” for the national grid, capable of integrating millions of diverse consumer energy resources.

This approach could significantly reduce the need for costly new transmission links and centralised generation capacity.

Mark Paterson, one of the report’s authors, describes the current energy landscape as experiencing “tidal” behaviour, with some suburbs alternating between 100 per cent local supply during the day and almost total reliance on the centralised system in the evening.

This dynamic, Paterson argues, requires a fundamental rethinking of power system design.

The research emphasises the need for Australia to accelerate its capability for whole-system transformation, noting that other advanced economies are already ahead in this area.

The goal is to create a 21st-century grid that empowers and rewards consumers for using their energy resources in ways that benefit the shared system.

With tens of billions of dollars at stake for Australian consumers and the economy, the report urges policymakers to place the diverse needs of electricity consumers at the centre of future power system planning.

This approach aims to fully value consumer energy resources, provide simple market-based participation opportunities, and balance traditional grid upgrades with the potential of millions of consumer energy resources.

As Australia continues its transition to renewable energy, this report serves as a crucial call to action for policymakers, researchers, and industry leaders to ensure the country’s energy future is both sustainable and consumer-centric.