RACE for 2030 Report Confirms the Impact of Third Equation’s NetworkExchanger (NEx)
Independent national study finds NEx eliminates voltage violations, improves power quality, and delivers the highest network and economic benefits among all technologies tested.
A major national research project conducted by Monash University and ThirdEquation Ltd under the RACE or 2030 Cooperative Research Centre has delivered compelling evidence for the transformative potential of the NetworkExchanger (NEx) in future low-voltage electricity networks.
The report, “Assessing the Impact of Network Exchanger (NEx) on Power Quality in Distribution Networks,” evaluated how NEx performs against other advanced technologies in addressing the operational challenges created by growing solar PV and electric vehicle (EV) adoption.
KeyFindings: Unmatched Performance Across All Scenarios
The study modelled a high-fidelity Queensland suburban network from 2025 to 2050 under Australia’s ProgressiveChange and StepChange scenarios (based on AEMO and CSIRO data).
Results revealed that NEx outperformed all other voltage management technologies, including On-Load Tap Changers (OLTCs) and Static Compensators (STATCOMs):
- 0% voltage violations were recorded in all test areas with NEx installed, compared to 7.1% with OLTCs and 23.8% with multiple STATCOMs.
- NEx’s per-phase voltage regulation enabled precise control of each phase, resolving both over voltage and under oltage issues even in unbalanced networks.
- The device maintained stable network operation across all scenarios, including weak and regenerative grid conditions.
- NEx’s independent phase control also improved fairness by ensuring consistent voltage quality for all consumers, mitigating location-based curtailment issues common in solar-dense feeders.
In short, NEx not only resolved voltage instability but also improved overall grid equity and resilience in complex, high-CER environments.
Transformer Loading and Power Quality
Transformer loading emerged as one of the clearest differentiators in NEx’s performance.
The study showed that NEx significantly reduced transformer stress, thanks to three synergistic features:
- Current balancing – insuring equal current draw across all phases, preventing single-phase overloading.
- Power factor correction – maintaining unity power factor at the transformer terminals by dynamically supplying or absorbing reactive power.
- Voltage optimisation – reducing reactive demand from PV inverters and thus lowering total current magnitude.
These combined effects reduced transformer loading by up to 30–40%,helping defer costly network augmentations and extending asset lifespan.
In addition, the research confirmed that NEx improved load symmetry and power quality, enhancing stability for both the grid and end-users.
Economic Evaluation: Proven Value and Scalability
The study’s cost-benefit analysis, based on the Customer Export CurtailmentValue (CECV) metric developed by theAustralian Energy Regulator (AER), showed that NEx achieved the highest annual benefit of all technologies tested.
While CECV only captures the financial value of avoided curtailment, the report notes that NEx’s broader economic impact is even greater, given its potential to reduce customer complaints, avoid voltage-related penalties, and extend the lifespan of critical network assets.
At an estimated target production cost of around AUD 20,000 per MVA, NEx was found to deliver exceptional value forDNSPs seeking to meet hosting capacity and reliability obligations while managing rising distributed generation.
Experimental Validation: Proven in the Lab
Beyond simulations, NEx underwent extensive laboratory testing at Monash University’s Power Engineering Advanced Research Laboratory (PEARL) to validate its real-world performance.
Across all tests, including unbalanced, inductive, regenerative, and weak grid conditions, NEx maintained:
- Stable operation and full control of voltage regulation, phase balancing, and power factor correction.
- Unity power factor on the grid side, even with heavy inductive loading.
- Consistent voltage regulation under sags and swells, maintaining steady 230 V output despite grid-side disturbances.
These experimental results confirmed the robustness of NEx’s control system, showing that its core functionalities can operate independently or in unison without compromising stability or responsiveness.
Broader Implications: Enabling the Energy Transition
The findings position the NetworkExchanger as a scalable and future-ready solution for Distribution Network ServiceProviders (DNSPs) and regulators facing the rapid rise of distributed renewable generation.
By combining per-phase voltage control, power factor correction, and current balancing, NEx delivers measurable improvements in hosting capacity, asset efficiency, and customer fairness.
The report concludes that:
“NEx provides benefits to customers such as reduced CER curtailment and improved fairness, and benefits to DNSPs through reduced complaints and deferred upgrades. Its performance makes it a highly compelling candidate for deployment in Australian distribution networks.”
As Australia moves toward a decentralised, decarbonised energy system, NEx offers utilities a technically proven, economically viable, and deployment-ready tool to support the clean energy transition, increasing resilience while lowering cost and complexity across the grid.
Report Highlights:
Key Findings on Technology Performance
o Single STATCOM: Least effective; reduced voltage violations from 62.9% to 53.4%.
o Multiple STATCOMs: Improved performance; reduced violations to 23.8%.
o OLTC (On-Load TapChanger): Reduced violations to 7.13%; struggled with unbalanced networks due to uniform phase regulation.
o NEx (NetworkExchanger): Most effective; eliminated all voltage violations (0%) with per-phase control and broader network impact.
Transformer Loading & Power Quality
o NEx reduced transformer stress via:
o Phase current balancing
o Lower reactive power demand from PV inverters
o Power factor correction at transformer terminals
o These features deferred the need for costly infrastructure upgrades.
Economic Evaluation
o NEx delivered highest annual benefit using the CECV metric (2035), followed closely by OLTC.
o Additional unquantified benefits include:
o Fewer customer complaints
o Avoidance of penalties
o Extended asset lifespan
Experimental Validation (Workstream 2)
o NEx tested under diverse conditions: phase unbalance, reactive loads, voltage disturbances, weakgrids.
o Demonstrated reliable performance in:
o Phase balancing
o Power factor correction
o Voltage regulation
o Maintained stability even under adverse scenarios like regenerative loading and weak gridconditions.
Broader Implications
§ High CER (CustomerEnergy Resource) uptake, especially rooftop PV, will stress LV networks.
§ EVs contribute less tovoltage issues but increase peak transformer loading.
§ NEx emerges as a scalable, technically robust solution for future LV networks under decarbonisation pressures.
Read the full report:
“Assessing the Impact of NetworkExchanger (NEx) on Power Quality in Distribution Networks”
Published October 2025 by RACE for 2030, Monash University, and ThirdEquation Ltd.
