Record numbers of large-scale renewable energy generators have been connected to the grid in Victoria over the past year, eclipsing every other state in the national energy market.
However, according to the annual outlook report from the Australian Energy Market Operator (AEMO) widespread bushfires, extreme weather and record-low demand for power have all combined to place considerable pressure on Victoria’s energy transmission network in 2019-20.
“We are seeing record levels of investment in new large-scale renewable energy generation, with AEMO having connected more generators in Victoria over the period than in any other NEM (National Electricity Market) state,” AEMO chief executive Audrey Zibelman said.
Victoria now has about 7.8 gigawatts of existing, or committed, wind and solar generation, and 2.9 GW of this comes from rooftop solar.
Since last year’s snapshot, which assessed the capacity and adequacy of the state’s transmission network to meet its energy demands, there has been a 1.6GW increase in Victorian large-scale wind and solar projects, with a record 16 projects connected or commenced.
“While under typical operating conditions Victoria’s transmission network is secure, strong investment in renewable energy has impacted the stability of power system operations, including record minimum demand levels,” the AEMO report said.
South Australia experienced record minimum demand last summer, with the increased number of rooftop solar systems leading to new, all-time low demand for grid-based power during the hottest part of the day.
The influx of renewable energy, especially rooftop solar panels, has raised problems for the power grid.
This increasing gap between minimum and maximum demand puts pressure on older gas and coal units that do not have the flexibility to turn off during the day when demand is low and return for the evening peak.
Energy market analyst Paul McArdle, managing director of Global-Roam, told The Age newspaper that when the AEMO describes the operational landscape in Victoria as “increasingly complex,” it meant the level of risk in the national electricity market was increasing.
“This doesn’t mean, automatically, that the lights are going to go out, but it does mean that it’s becoming increasingly challenging to manage that risk.”
Earlier this month, Victoria’s state Labor Environment Minister Lily D’Ambrosio announced one of the world’s largest lithium-ion batteries would be built near the regional city of Geelong to bolster the reliability of the grid and keep a lid on power prices as coal-fired generators retire.
The battery will help to reduce the strain on the grid during peak periods, especially in summer.
Ms Zibelman said AEMO would spend $3.5 billion over the next decade to maintain supply reliability and system security, including on the Victoria to New South Wales interconnector, which will boost power flows between the two states, and the expansion of renewable energy zone projects that co-ordinate the development of new grid infrastructure in energy-rich areas.
NSW last week announced $32 billion in private investment to support, among other things, 12GW of new renewable energy capacity by 2030 in three regional areas.
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