Responding to the challenges of climate change

Our network covers a diverse geographical area, and different areas are exposed to different climate risks. Some areas are expected to experience more storms, while others might be exposed to hotter weather or bushfires.

A warming climate means that extreme weather events are projected to increase in both frequency and intensity. The extent and timing of these risks have a degree of uncertainty, and we need to consider this uncertainty when assessing potential resilience solutions we can implement. Not only do different areas experience different weather, some areas recover from extreme weather events more easily than others. Typically, more vulnerable communities find it harder to recover from the impacts of extreme weather events – unfortunately, some of Ausgrid’s more vulnerable communities are also those most exposed to the growing climate risk.

To determine the right approach to take, we have designed with our customers a Resilience Framework; the framework will help us work with local communities to make targeted investments to mitigate the risk of extreme weather events.

Building resilience to support our communities

The Australian Energy Regulator (AER) defines resilience as “a performance characteristic of a network and its supporting systems (e.g., emergency response processes, etc.). It is the network’s ability to continue to adequately provide network services and recover those services when subjected to disruptive events”.

Ausgrid understands this to mean:

• Adequately provide - Build our capability to adapt, withstand and resist impacts or avoid network destruction by absorbing and minimising disruptions
• Network services - Capability to provide network services to customers and additional relevant support to communities
• Recover - Ensuring plans and processes provide energy supply restoration and support to communities as quickly as possible
• Disruptive events - Major hazard or chronic risk such as extreme weather events, cyber-attacks, pandemics, unknowns, etc.

We are working out the best way to prepare our network and communities to withstand more extreme weather scenarios before, during, and after an event.

We are engaging with local communities on how we can build climate resilience in their areas. In our engagement to date, building resilience against the impacts of climate change is a unanimous priority across our communities. 

What have customers told us?

Customers think we should take action to assist those in areas most at risk from extreme weather to address the predicted increase in the frequency and length of outages. They want us to prioritise innovation and investments to build climate resilience in these high-risk areas and to prioritise those who are most vulnerable.

As we plan for our future, we are researching and engaging with communities on how best to invest in a more resilient and secure network. We will consider both scientific evidence and our customers’ preferences to identify the most cost-effective and impactful locations to invest in within our network area.

A framework guided by our customers

In 2022, we partnered with our customer advocacy group, the Ausgrid Reset Customer Panel, to produce a co-designed Resilience Framework titled 'Promoting the long-term interests of consumers in a changing climate: A decision-making framework (the Framework)'.

The framework communicates how we intend to build resilience and respond to the risks and impacts of extreme weather events. 

Download a copy of the Ausgrid Decision Making Framework to find out more about our proposed resilience activities.

How will we continue to engage with communities?

In January 2023 Ausgrid submitted our initial Regulatory Proposal for 2024-2029 to the AER, this was shaped by our customers and included our plans to work with local communities to improve their resilience. During 2023, we will be working with our various community engagement forums to prioritise the proposed resilience activities in the Plan using the Framework prioritisation principles and ensure that the portfolio meets customers’ expectations and willingness to pay.