As Australia’s electricity grid becomes increasingly decentralised—with millions of households installing rooftop solar, adopting batteries, and switching to electric vehicles—the pressure on our local distribution networks continues to grow. These changes, while essential to our net-zero ambitions, are introducing new technical challenges at the grid edge: rising voltage fluctuations, phase imbalances, reverse power flows, and asset overloads.
At Third Equation, we saw the need for a solution that works at the heart of the low-voltage network—right at the transformer, where these issues manifest most acutely. That’s why we developed the Network Exchanger (NEx): a modular, decentralised grid-edge device designed to manage power quality in real time, at street level.
Now, in partnership with Monash University and supported by the RACE for 2030 CooperativeResearch Centre, NEx is undergoing independent validation in both simulated and laboratory environments. The goal: to test NEx’s ability to increase DER hosting capacity while improving voltage regulation, balancing loads between phases, and correcting power factor—all without relying on centralised infrastructure.
Real-World Modelling Meets Lab-Based Validation
The current validation program is structured across two parallel workstreams
- Simulation Testing:
Using a detailed model of a suburban distribution network in Brisbane (13,535 customers, 229 transformers, and over 5,000 rooftop PV systems), Monash has integrated future DER growth scenarios based on the Australian Energy Market Operator’s 2024 Integrated System Plan. - Lab Testing:
At the Power Engineering Advanced Research Lab (PEARL), a 30 kVA testbed has been set up using a grid emulator and dynamic load banks to physically test NEx under asymmetric and unbalanced conditions, simulating real-world operating environments.
Early Results: What NEx Is Proving
Initial results from both simulation and lab testing have been promising and confirm what we have long believed: smarter control at the transformer level can significantly outperform traditional solutions.
Key Technical Outcomes:
- Voltage Regulation
In test scenarios where PV systems were operating at 120% of their rated capacity, voltage violations occurred on Phase B of the network. With NEx active, these violations were entirely mitigated.
The system autonomously lowered voltage setpoints only on the affected phase, showcasing NEx’s per-phase control advantage.
- Phase Balancing
Transformer neutral current—a key indicator of imbalance—dropped dramatically from 17.7 A to 1.28 A, reflecting NEx’s ability to intelligently redistribute load across phases. - Power Factor Correction
Across all phases, NEx maintained a power factor of 1.0, helping reduce reactive power draw from the grid and supporting more efficient energy flow. - Improved DER Hosting Capacity
By stabilising voltage and balancing the network, NEx opens the door for significantly higher uptake of rooftop PV and EV charging infrastructure without the need for costly network upgrades.
In the lab, these functions were validated under controlled disturbance conditions using varying voltage setpoints, load asymmetries, and reactive current profiles. NEx responded dynamically, proving its value not just in theory, but in hardware.
Built for the Grid Ahead
What sets NEx apart from conventional technologies like OLTCs or dSTATCOMs isn’t just its functionality—it’s where and how it operates.
Unlike centrally managed voltage regulation systems, NEx works independently at the distribution transformer, where solar and EV loads connect directly. This decentralised architecture brings several key advantages:
- Per-phase voltage regulation, rather than system-wide adjustments
- Ability to work with or without SCADA / cloud-based communications networks
- Compatibility with reverse power flows, making it ideal for solar-exporting neighbourhoods
- Passive thermal design, allowing operation without active cooling
- Scalable configurations with 800 and 500 kVA ground-mounted and 250 kVA pole-mounted variants in development
“We built NEx to solve the local problems of a global energy transition—voltage instability, phase imbalance, and poor power factor,” says Greg Dujon, CEO of Third Equation.
“Seeing it now independently validated by world-class institutions like Monash and RACE2030 is a major milestone. It proves that transformer-level intelligence is no longer optional—it’s essential.”
What’s Next?
As the project continues, the next phases will include
- A full cost-benefit analysis comparing NEx with other voltage management solutions
- Expanded testing under different network R/X ratios and high DER export scenarios
- Continued engagement with Distribution Network Service Providers (DNSPs) to explore deployment pathways and grid integration strategies
At Third Equation, we believe the future of power quality lies not in centralised control rooms, but in intelligent, decentralised devices that can respond instantly where the grid needs it most. NEx is proving that the future is not just possible—it’s already here.
