The Illawarra could be on the verge of a quiet revolution in clean, local energy, writes Greg Knight of Renew Illawarra
A fortnight ago the NSW Government announced the Illawarra will be the site of the first Urban Energy Zone (UEZ). While details are still emerging, several recent developments suggest something big – and genuinely exciting – could be around the corner for households in our area.
So, what is an Urban Energy Zone?
My wish is that in simple terms, it's a smarter, fairer local energy system – designed to generate, store, and share clean electricity within the community. Here's what it could look like:
- Local Storage: Community batteries, home batteries, and even electric vehicles (EVs) plugged into the grid (thanks to new "vehicle-to-grid" tech) all combine to form a local energy pool;
- Smarter Sharing: Excess solar from homes is stored locally, ready to be used when the sun isn’t shining;
- Fairer Prices: A community-run electricity retailer would oversee peer-to-peer energy trading – household to household, or household to virtual battery – with fairer prices and more local control.
- Managed Locally: Endeavour Energy would handle network operations, keeping everything running smoothly within the zone.
The Signs Are Promising
Several things have already happened to support this vision:
- Endeavour Energy has developed a practical model for deploying community batteries to deliver cheaper, reliable energy to neighbourhoods.
- Federal incentives now include a 30% discount on home batteries, and new EVs will have to meet standards that allow them to feed energy back into the grid.
- Smaller innovative power companies and retailers are investing in unconventional power systems.
- The proposed offshore wind farm will include community benefit funding. This could later supercharge the Urban Energy Zone.
- Smart meters and new grid control software systems now allow for flexible billing models, including local peer-to-peer energy trading.
The Community Wish List
Here’s what many in the community hope to see:
- The offshore wind farm developer or someone else sponsors a not-for-profit, community-owned energy retailer;
- The same sponsor helps fund or finance a fleet of community batteries, recharged with renewable energy;
- Battery management is handled by local contractors – creating jobs and accountability;
- Endeavour Energy integrates the batteries into the existing grid, managing power flow at the suburb level.
What Would It Cost Us?
One of the goals is to cut costs where possible (figures in brackets are the current %):
- No grid transmission charges (4%, we’re not using the long-distance grid).
- No green energy surcharge (8%, the system is already 100% renewable).
- Lower retailer margins (22%, the retailer is community-owned and non-profit).
- Local Network cost adjustments (26-30%) to reflect battery support and local supply.
Everyone in the community would be able to participate:
- Renters, apartment dwellers, and people without solar;
- Homes with solar;
- Homes with solar + battery (including EV batteries).
We can be optimistic.
All the required components exist right now but are not planned to be integrated into a UEZ. The pieces are falling into place. With smart planning, strong community leadership, and a bold vision, we could soon have one of the most sustainable, economical, and locally controlled energy systems in Australia.
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.
