The Australian Energy Regulator (AER) has approved a landmark trial that could reshape how Australian cities integrate electric vehicle (EV) infrastructure into local energy networks.
Under a newly granted ring-fencing waiver, CitiPower, Powercor and United Energy (CPU) will install and operate up to 100 kerbside EV chargers – including at least five vehicle-to-grid (V2G) units across Victoria until mid-2031.
The $1.2 million pilot will explore how pole-mounted charging can help manage voltage stability, relieve network congestion, and shift demand away from peak periods – all without impacting customer bills.
Balancing innovation and market integrity
Ring-fencing rules exist to prevent monopoly network operators from competing unfairly in emerging markets. The AER’s limited waiver comes with nine strict conditions to preserve competition and ensure public transparency.
Clare Savage, Chair at AER, said the regulator had weighed stakeholder feedback carefully.
“There has been significant interest in this trial, with a wide range of views presented during consultation,” she said.
“On balance, we consider there are tangible benefits for all Victorian electricity consumers. By trialling kerbside charging under strict safeguards, we can test how network infrastructure can be used more efficiently and potentially reduce the need for costly grid upgrades.”
Trial design and operation
CPU will own and maintain the chargers – installed on existing power poles – but commercial access will be leased to multiple service providers who will set pricing and manage customer experience.
The networks will charge themselves the same pole-access fees as third parties, ensuring a level playing field. All findings, including network performance and consumer-behaviour data, will be reported publicly.
At the trial’s conclusion, CPU must either remove the chargers, open them up to the market, or apply for a new waiver.
Managing demand through smart charging
The project will test how real-time demand management through price signals and direct modulation can influence EV charging patterns.
If successful, it could demonstrate how distributed charging assets help stabilise local grids by increasing load during low-demand periods and reducing it during peaks.
Savage said the AER’s regulatory sandboxing framework enables the energy sector to trial such forward-looking solutions while maintaining consumer protections.
“As more consumer energy resources like EVs integrate into the grid, it’s critical that we explore innovative ways to boost network utilisation,” she said.
“Every proposal is assessed on its merits, with the long-term interests of energy consumers at the centre of our decisions.”