The state of South Australia is a global
leader in the use of renewable energy. The use of renewable energy will play a
crucial part in helping the world hit the targets set at the Paris Climate Agreement
to tackle climate change. The progress made by South Australia could help the
rest of the world find a faster route to a successful energy transition,
according to a report from the Institute for Energy Economics and Financial
Analysis (IEEFA).
World Economic Forum has picked seven
takeaways from A Grid Dominated by Wind and Solar Is Possible, South
Australia: A Window into the Future report.
1. Most - and sometimes all - annual
demand can be met by wind and solar
The South Australia state government set
a 2020 target of getting 26% of the state’s energy from renewables. It smashed
that goal, with renewables delivering 60% of its energy needs. In October of
that year, 100% of the state’s energy came from solar sources – just for one
hour, but it was impressive.
Key to its success has been a commitment
to a mix of renewable sources, the IEEFA says. “South Australia therefore
provides valuable lessons for the rest of the world, showing what is possible
with variable renewable energy (VRE) and distributed energy resources (DER)
integration.”
2. Renewables adoption can be driven by
government policy and market features
South Australia is known for its
sunshine and reliably strong winds. But having a lot of sun doesn’t automatically
mean a lot of solar power. For that, there needs to be the right legislative
processes in place. The Australian federal government introduced its Renewable
Energy Target (RET) in 2001, along with a Renewable Energy Certification scheme
aimed at encouraging new installations. “Many early projects incentivized by
RET were installed in South Australia as the market was attractive to investors
and developers,” the IEEFA report says.
3. Ambitious plans can spark economic
growth
The South Australian government has set
its sights on producing 500% of its energy from renewables by 2050 and becoming
a net exporter of greener power.
The neighbouring states of New South
Wales and Victoria are among its intended targets, IEEFA says, with additional
plans to export “green hydrogen, green steel and other low emissions products
internationally”.
4. Renewables can help deliver sub-zero
wholesale electricity prices
Wholesale electricity prices for South
Australia were the lowest in the Australian National Electricity Market in the
final quarter of 2020. So low that the price of electricity fell to minus-$9
per megawatt hour (MWh) between 10am and 3.30pm during the first quarter of
2021.
Image: AEMO
5. Renewables grids can deliver system
reliability and security
“Overall South Australia has met its
reliability standard for the past 15 years,” IEEFA says. The only exception was
in 2008-09 when “extreme temperatures in Victoria and South Australia reduced
the availability of the interconnector between the two states”.
Continuing to maintain supplies will
mean having an infrastructure that can accommodate a larger number of
generators and the distributed nature of energy resources, the report says. It
cites 253 occasions when the Australian Energy Market Operator had to intervene
in the market during 2019-20 (compared to 153 times in 2018-19) to direct
“synchronous generators to maintain the system in a secure operating state”.
6. Batteries can support system
reliability and energy security
South Australia has four grid-scale
batteries on-stream and two more being built. This includes the world’s largest
battery energy storage system, according to IEEFA – the Hornsdale Power Reserve
(Tesla).
The report describes the Hornsdale
battery as “a technical success, helping to keep the lights on when faults have
occurred in the grid”. IEEFA also points out that the site has recouped its
capital cost in just over two years of operation.
7. Distribution networks can adapt to
support rooftop solar
An estimated 40.3% of households in
South Australia have rooftop solar panels. To ensure their safe and effective
incorporation into the grid, the ebb and flow of electricity across the
distributed network must be carefully managed.
Last year, South Australia introduced a
regulation to enable operators to remotely disconnect rooftop solar inverters. IEEFA
however recommends the use of dynamic operating envelopes or DOEs. “DOEs allow
distributed energy resources to import and export within the constraints of
distribution networks on a five-minute basis, set 24 hours in advance,” IEEFA
says.
South Australia was a region that relied
100% on fossil fuel as recently as 2006. But now it closed its largest
coal-fired power station while supporting the workers back into employment
through funding a solar-powered greenhouse that employs 220 people. It
fast-tracked wind farms in rural areas and offered residents a $3,000 subsidy
for a solar energy battery. It also built the world’s largest grid-scale
battery storage system and supported green power plants with big contracts.
With these measures, South Australia smashed its green energy goals and now has
one of the world’s greenest energy systems.
What is Malaysia doing to cut CO2 emissions?
Could we not learn from this Australian experience?
Reference:
7 renewable energy lessons from South
Australia, World Economic Forum, 14 Jun 2021
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