By Greg Knight, convenor of the Illawarra branch of Renew
At a presentation at the University of Wollongong on Thursday, February 19, I outlined how a Community Energy Zone (CEZ) could be implemented in the local area.
A CEZ would function using Consumer Energy Resources (CER) along with Community Batteries and Vehicle-to-Grid (V2G) technology, creating a local energy “bank” that allows excess power to be stored and distributed efficiently. This approach reduces reliance on large energy providers while increasing local resilience.
Once operational, a CEZ is expected to lower electricity costs, improve grid reliability, and make energy access more equitable. By reducing peak loads on the grid, it can also minimise the need for costly infrastructure upgrades, such as additional power lines and substations.
The key benefits of such a system include:
- Fair returns on solar and battery investments
- Community governance over energy distribution
- Lower electricity prices for all consumers
The Growing Shift Toward Local Energy Independence
Many households are already moving toward a CEZ model through the adoption of Consumer Energy Resources such as solar panels, home batteries, heat pump hot-water systems and EVs. Industries and institutions are going further, installing microgrids – smaller, private versions of CEZs – to enhance energy reliability and reduce costs.
Last year, Queensland’s Energex announced plans to develop Local Renewable Energy Zones (LREZ).
According to Energex, “LREZs will be a complete local energy system for communities coordinating generation from rooftop solar installations, electric vehicle charging, customer batteries, hot water, community and network batteries, within the existing network infrastructure – to support a renewable energy transition led by customers.”
Regulatory Roadblocks
Despite the clear benefits, outdated regulations remain a major obstacle to implementing CEZs.
Reforms are necessary to enable community-driven energy solutions and prevent “integration” into an inefficient, centralised system designed for large, remote fossil-fuel generators.
The challenge now is to push for regulatory changes that will allow CEZs to thrive. Without this effort, we risk ending up with a suboptimal system that doesn’t serve consumers well.
A key element is to lobby local politicians to change the regulatory environment for distribution networks like Endeavour Energy to allow local generation and storage, facilitate third-party access along with new entities like Distribution Service Operators and local power operators.
About the writer
Since 2020 Greg Knight, along with his colleague, Neville Lockhart, have been key advocates for Community Power, influencing both local and national energy bodies. They’ve played a significant role in shaping the Wollongong City Council’s Climate Change Mitigation plan and have contributed to multiple government inquiries on the power system. Greg worked as a metallurgist and quality system engineer at BHP/BlueScope Steel for 39 years. He is the convenor of the local Illawarra Branch of Renew and presents “Electrify Everything” talks to the local community.
Renew is a membership non-profit organisation working to transform Australian homes for climate and energy resilience.
