Energy network must evolve to incorporate renewables more effectively
Australia faces an energy paradox as the country pursues its net zero targets. The Federal Government has enshrined into law an emissions reduction target of 43 per cent from 2005 levels by 2030 and net zero emissions by 2050. This is a significant target, one that industry estimates will require 6 GW of new renewable energy and storage each year. However, the current network is struggling to handle renewable energy fed to the grid, especially from wind and solar farms. A recent study by Australian National University found that solar is the worst affected, with almost double the curtailments compared to wind energy, despite having a smaller installed capacity. This puts the country’s net zero targets under pressure as network congestion is causing large volumes of cheap renewable energy to be curtailed, meaning Australia has an “overgeneration” problem when it comes to renewables, particularly solar. This may lead to financial losses for clean energy generators and make investment in future projects a risky prospect. Regulators face a myriad of challenges in managing a centralised grid – challenges ranging from power outages, modernisation, cybersecurity, demand management and transmission losses. Australian Energy Market Operator (AEMO) estimates that around 10% of the electricity leaving an Australian power station never reaches consumers, which adds to the end consumers’ costs as this lost energy must still be paid for. Grid tariffs are also a concern as they may slow down the country’s path to net zero as renewable energy generators are saddled with legacy grid costs. Grid tariffs are currently based on amortising 25-year investments in national transmission cost. However, renewable energy sources can function cost effectively at the local level using microgrids, which are being implemented across Australia. Kalbarri in WA is now powered by a 100% renewable energy-intelligent microgrid with wind energy, solar […]