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The Australian Renewable Energy Agency (ARENA) has announced $20.8 million in funding for Western Power to develop a commercial solution for integrating Distributed Energy Resources (DER) into the South West Interconnected System (SWIS) in Western Australia.
The initiative, known as Project Jupiter, aims to enable large-scale participation of DER in the energy market while maintaining grid stability and security, the agency said in a news release.
ARENA CEO Darren Miller said the project is a step toward modernising Western Australia’s energy system.
DER includes small-scale energy assets such as rooftop solar, battery storage, and electric vehicles that generate, store, or manage electricity use.
Miller emphasised that while Australia has one of the highest levels of DER penetration globally, integrating these assets effectively into the grid remains a challenge.
He noted that Project Jupiter will be the first live DER marketplace in the country to integrate with the wholesale energy market, marking a milestone in Australia’s renewable transition.
Customers participating in the program will have access to new retail products that could improve returns on their DER investments.
By coordinating DER participation in the energy market, the initiative is expected to enhance grid management and put downward pressure on household electricity costs.
Project Jupiter builds on the findings of the recently completed rooftop solar, battery storage, and electric vehicles and will be delivered over three years in collaboration with Western Power, Synergy, Energy Policy WA (EPWA), and the Australian Energy Market Operator (AEMO).
With about 40 per cent of SWIS households already equipped with rooftop solar and approximately 30,000 new systems installed each year, the initiative is designed to support the growing adoption of home energy solutions.
The rising installation of battery storage systems is also creating opportunities for clean energy to be stored and used more efficiently.
Western Power Head of Distribution Energy Transition Andrew Blaver said Project Jupiter will accelerate opportunities for households to participate in Virtual Power Plants (VPPs), allowing them to generate additional value from their energy assets.
He stated that by 2028, all new DER connected to WA’s network will be able to join a VPP, marking a shift in how energy is generated and managed in the state.
ARENA has previously allocated over $200 million to DER projects and has led the Distributed Energy Integration Program (DEIP), a collaborative initiative involving government agencies, industry stakeholders, and market authorities.