Call for solar switch-off power to help AEMO cope with renewable supply
Energy authorities want the power to switch off new rooftop solar panels – at will – to manage SA’s electricity system. And they say there are risks of bans on new systems or costly retrofits if they don’t get it.
SA News
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Householders buying new solar panels would have them equipped so the electricity market operator can disconnect them remotely, under changes proposed in a landmark report today.
The measure would shore up stability of the grid to help avoid mass blackouts but cut revenue earned by the household feeding electricity into the grid.
There is already so much rooftop solar in South Australia that, at times, the Australian Energy Market Operator struggles to securely manage the system.
The operator — the body which runs the system each day — warns that without a set of reforms, electricity will cost more and stricter measures will be needed including a ban on new rooftop solar in some areas and “costly retrofit” on existing installations.
However, with reforms the National Electricity Market can rely more on cheap renewable energy.
“Today’s operating approaches and market frameworks are becoming less effective as the market continues its transformation to world-leading levels of renewable generation”, AEMO managing director Audrey Zibelman said.
“Australia already has the technical capability to safely operate a power system where three quarters of our energy at times comes from wind and solar energy generation.
“However, to do so requires changes in our markets and regulatory requirements, otherwise, AEMO will be required to limit the contribution of these wind and solar resources to 50 or 60 per cent of electricity supply at any point in time, even though they are the lowest cost way of providing electricity.”
With tens of billions of dollars of investment needed in the electricity system, AEMO’s Renewable Integration Study published today will guide government and private sector decision makers.
AEMO proposes 15 major reforms to market processes and technical requirements for stability and strength.
The AEMO report covers wind and solar and proposes greater flexibility and better anticipation of supply and demand.
In SA now, 31 per cent of homes have solar as well as 11 per cent of small business and 24 per cent of large businesses.
Last year, there were times when 64 per cent of SA’s use was from rooftop solar and this could rise to 85 per cent by 2025.
The AEMO report warns the aggregated size of solar is now so big there are risks of mass disconnections if there are technical disturbances in the system.
There can be so much rooftop supply in the middle of the day that grid demand will become so low it will undermine viability of gas-fired generators.
As well as new solar being equipped with remote disconnection capability, AEMO wants real-time visibility of how much power rooftop solar is providing and for new inverters to be able to ride through voltage disturbances.
When rooftop solar disconnects from the grid, whether it continues to power the house depends on its blackout settings.
At a system level, the report cites the example of January this year when SA was cut off from other states because a storm knocked over transmission lines in Victoria.
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Under its existing rules, AEMO ordered emergency reserve power turned on in Victoria and NSW. In SA, wind farms were ordered to turn off, big batteries were told not to supply and gas plants were ordered on.
This, and two lesser events, cost $229 million of which the State Government says $93 million was accrued in SA.
The report will be used in the Integrated System Plan, the overriding blueprint for cheaper, more reliable and cleaner energy which is supported by governments.
The plan highlights the need for more transmission, including between states.
With transmission investments crucial for the grid, the Australian Energy Regulator this week approved $218 million in capital expenditure to upgrade the NSW-Queensland interconnector.
The regulator backed the investment, saying it would support NSW consumers when the Liddell coal-fired power station in that state closes.
NSW electricity bills will increase to help pay for the upgrade but regulator chair Clare Savage said there would be a net economic gain.
The Federal and NSW governments are underwriting $102 million of the project cost.