Illawarra Renewable Energy Zone to host $11M social housing VPP pilot

The New South Wales and Australian governments are launching an $11 million pilot project to implement virtual power plant (VPP) technology within the Illawarra Renewable Energy Zone. The initiative will install rooftop solar panels and battery energy storage systems in selected social housing properties to provide cost-of-living relief for tenants and improve electricity grid stability.

Through the VPP, stored energy from multiple homes can be used or exported to the grid when it is most valuable. This pilot is part of the broader $1.1 billion Social Housing Energy Performance Initiative, which aims to upgrade the energy performance of 100,000 social housing properties by mid-2031. The federal government is contributing $10 million to this specific VPP project, with $1 million provided by the NSW government.

EnergyCo, the state authority responsible for renewable energy zones, is currently seeking feedback from solar and battery installers and VPP operators to help shape the technical and commercial design of the program. The market sounding process is scheduled to run until October 25.