Agile Advantage - Embedded Networks 101: Turning electricity from a cost centre into a profit centre

Synopsis

For asset owners and landlords, electricity has traditionally been treated as a fixed cost and operational overhead. However, with the rise of embedded networks, private electricity networks serving multiple tenants within a property, energy is being transformed into a source of recurring revenue, tenant engagement, and sustainability leadership.

With Agile Energy as the partner, landlords can capture value while ensuring full compliance with Australian regulatory requirements.

What are Embedded Networks?

An embedded network is a private electricity system within a building or precinct, where a single grid connection supplies multiple tenants. Instead of every tenant managing their own retailer account, the landlord (or operator) buys in bulk and manages supply, billing, and metering internally.

Why it works:

• Landlords secure a wholesale-to-retail margin on electricity sales

• Tenants often pay 5-15% less than they would with a standard retailer

• Solar, batteries, and EV charging can be layered in to enhance savings and ESG outcomes

Australia already has over 250,000 customers served via embedded networks, particularly in shopping centres, business parks, retirement villages, and mixed-use precincts.

Benefits for Owners and Tenants

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For asset owners/landlords:

• Recurring revenue stream: Wholesale-to-retail margin can deliver $50-$150 per tenant per month in net revenue

• Stronger solar + battery business cases: Shared infrastructure makes large- scale renewables viable

• Enhanced property value: Lower tenant energy costs and sustainability credentials improve attractiveness and retention.

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For tenants:

• Lower, more predictable rates than standard retailers, with independent benchmarking

• Transparent billing: consolidated, auditable invoices with smart metering Access to renewables: solar and battery-backed supply supports ESG and emissions reporting

Legislative & Compliance Networks

Embedded networks are tightly regulated under the National Electricity Law and National Energy Retail Law, administered by the Australian Energy Regulator (AER). Key requirements include:

• AER Exemptions: Operators must obtain the correct exemption (network and retail) and comply with ongoing reporting obligations

• Tenant Protections: Tenants must retain the right to "opt-out" and choose an authorised retailer ("power of choice")

• No Arbitraging Tenants: Landlords cannot use embedded networks as a mechanism to unfairly increase energy margins at the expense of tenants, rates must remain competitive and transparent

• Billing & Metering: Smart metering, compliant billing systems, and dispute resolution procedures are mandatory

• Consumer Guarantees: Operators must provide access to hardship provisions, life-support protections, and transparent dispute resolution processes

• Upcoming Changes: The AEMC and AER are reviewing frameworks for embedded networks to strengthen consumer protections, future-ready designs are essential.

Step-by-Step Pathway

Agile Energy's structured approach ensures embedded networks are compliant, profitable, and tenant-positive:

1. Feasibility & Load Analysis: Assess building demand, tenant mix, and infrastructure readiness

2. Business Case Modelling: Forecast ROI, with sensitivity analysis on tariffs and occupancy rates

3. Regulatory Compliance: Secure AER exemptions and design transparent billing systems

4. Network Design & Metering: Deploy smart meters and compliant sub-metering

5. Implementation: Install, integrate, and commission systems

6. Tenant Engagement: Communicate benefits, maintain opt-in fairness, and support sustainability reporting

7. Ongoing Operations: Billing, settlement, compliance reviews, and optimisation

Revenue Models

Embedded networks create multiple income streams:

• Wholesale-to-retail margin: core revenue source, often $20,0000-$100,000 per annum depending on site size

• Solar & battery integration: capturing value from self-generation and peak demand reduction

• Network services participation: demand response, frequency control, and VPP programs, generating $50-$100/kW annually

• EV charging & carbon credits: layering in future-proof revenue aligned with sustainability targets

Compliance at the Core

Agile Energy ensures embedded networks are built for long-term success by:

• Applying the correct AER exemption frameworks

• Maintaining transparent, auditable billing and metering systems

• Conducting regular compliance reviews in line with AER guidelines

• Safeguarding tenant rights to avoid reputational or legal risk

• Structuring pricing to benefit both landlords and tenants, not simply arbitrage tenants for margin

Agile Energy's Role

Agile Energy partners with landlords to design, implement, and operate embedded networks with a tenant-first and regulator-aligned approach.

We combine technical expertise, compliance rigour, and commercial structuring to ensure embedded networks deliver:

• Reliable, recurring revenue without compliance risk.

• Reduced tenant churn through cost savings and sustainability benefits.

• Integration with future technologies such as EV charging, on-site storage, and smart demand management.

Conclusion

Embedded networks represent a practical, regulated pathway for asset owners to unlock energy's hidden value.

With the right partner, electricity can move beyond being an unavoidable cost to a revenue-generating, tenant-supporting, sustainability-enhancing asset.

Agile Energy provides end-to-end expertise, ensuring embedded networks are profitable, transparent, and fully compliant.

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