How New Storage Capacity Will Keep the Lights On This Summer
As Australia heads into the 2024-25 summer, the Australian Energy Market Operator (AEMO) is spotlighting the role of big batteries, solar, and wind in ensuring a stable electricity supply. With more than 3 GW of new renewable generation and storage capacity added to the grid since last year, Australia is better equipped to tackle the challenges of extreme weather, increased demand, and grid reliability this summer.
Let’s dive into AEMO’s Summer Readiness Report and see how Australia’s energy landscape is evolving to embrace renewable solutions while addressing risks and uncertainties.
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What’s New This Summer?
The AEMO report highlights that since September 2023, the National Electricity Market (NEM) has added:
- 1,010 MW of grid-scale solar
- 940 MW of wind power
- 750 MW of battery storage, with varying durations.
This new capacity marks a 58% jump in available storage compared to last year. By December 2024, an additional 750 MW of projects are expected to be fully operational, delivering more energy when the grid needs it most.
In Western Australia’s WEM (Wholesale Electricity Market), new batteries like the Collie and Kwinana 2 projects add another 425 MW to the state’s storage capacity, supporting its transition to renewable energy.
The Role of Big Batteries
The growing presence of large-scale battery storage is changing the game for grid stability. Batteries not only store excess renewable energy but also play a key role in managing supply-demand imbalances.
Last week, for the first time, AEMO called on two big batteries in New South Wales, including the soon-to-be-commissioned Waratah Super Battery, to stand ready with a specific level of charge. The Waratah Battery, with a massive 850 MW capacity and 1,680 MWh of storage, is set to become the largest energy storage unit ever connected to the Australian grid, surpassing even traditional coal and gas plants.
Managing Summer Risks
While Australia’s grid is better prepared, challenges remain. Key risks identified in the report include:
- Extreme weather: Heatwaves, storms, and flooding can strain the grid.
- Generator outages: Both renewable and fossil-fuel generators face risks of downtime.
- High demand spikes: Increased air conditioning use during heatwaves can create peak load issues.
- Minimum load conditions: Too much solar generation on mild, sunny days could result in overloading.
To address these risks, AEMO has prepared strategies, including tendering for interim reliability reserves (IRR) and contracting supplementary capacity in Western Australia.
Gas Generation and Renewables: The Balancing Act
While renewable energy is taking the lead, gas generation remains crucial for peak periods. Interestingly, AEMO forecasts slightly higher gas use in January 2025 compared to recent years but expects a significant drop in gas reliance for February and March due to the increased contribution from batteries and renewables.
This shift underscores the growing uncertainty around gas demand, driven by the performance of renewable technologies and storage systems.
Keeping Calm: Understanding LOR Notices
AEMO has also taken steps to educate the public about Lack of Reserve (LOR) notices, which are often misunderstood as imminent blackout warnings.
- LOR1: A forecast of reduced reserves but no immediate risk.
- LOR2: A higher level of risk, but still manageable without customer impact.
- LOR3: The most critical level, where load shedding might be necessary
These notices help AEMO activate reserve mechanisms and direct generators, ensuring a stable grid during challenging conditions.
What This Means for Businesses and Households
The increase in renewable energy and battery storage is a win for consumers, reducing reliance on fossil fuels and stabilizing energy costs. However, preparation and understanding of grid dynamics remain essential, especially during high-demand periods.
How Eon Advisory Can Help
At Eon Advisory, we specialize in providing tailored energy solutions to help businesses and households navigate the changing energy landscape. From solar and battery installations to energy management systems, we empower you to reduce costs, improve efficiency, and embrace renewable energy confidently.
We have recently partnered up with Potise for their unique and innovative hybrid battery solutions and are looking forward to sharing that partnership with the world. ..
More to come, so stay tuned….
Ready to future-proof your energy setup? Contact us today at Eon Advisory for a free consultation and take the first step towards energy independence and savings.
Reference and Graphs
For the full report and graphics, visit the AEMO Summer Readiness Report and stay informed about Australia’s energy transition.
This blog is designed to keep you informed and empowered, showcasing how renewables and storage technologies are shaping the future of energy. Let’s work together to make your energy smarter, greener, and more reliable.