Pumped hydro storage can create cheap energy that uses 100 per cent renewable power
PUMPED hydro storage can help create a secure and cheap energy grid that uses 100 per cent renewable power, research shows.
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PUMPED hydro storage can help create a secure and cheap energy grid that uses 100 per cent renewable power, new research shows.
The system involves pumping water from the bottom of a hill and storing it for later use to generate electricity.
An Australian National University study found the electricity it supplied would cost $75 per megawatt hour in 2020, which it says would be cheaper than coal and gas.
It comes as the Federal Government releases new modelling that shows power prices for South Australian businesses have more than doubled in the past decade.
Prime Minister Malcolm Turnbull is expected to step up the energy debate in Parliament this week after Labor leader Bill Shorten recommitted to a 50 per cent renewable target in a speech last week.
The ANU study found a zero-emissions grid would mainly rely on wind and solar generation but would need to be supported by pumped hydro storage and new interconnectors from each state into NSW.
The cost includes estimates of the cost of new interconnectors which would run into the billions of dollars. The State Government has already funded research into a new interconnector between SA and NSW.
Lead researcher Professor Andrew Blackers said there were options to explore.
“With Australia wrestling with how to secure its energy supply, we’ve found we can make the switch to affordable and reliable clean power,” he said.
The study found in 2016 wind cost $65/MWh last year and it was estimated to fall to $50/MWh in the 2020s, while solar was $79/MWh in 2016 and was also estimated to drop to $50/MWh.
At 2016 prices the whole zero-emissions system cost would be $93/MWh.
At 2020 prices the cost is $75/MWh. The additional $25/MWh on top of the generation covers storage using pumped hydro, energy losses and the cost of new interconnectors.
This compares with the current wholesale market price in Australia of about $60/MWh.
The study found supercritical black coal — thought of as lower emissions coal — costs $66/MWh and gas costs $78/MWh. Power from brown coal generators was even less.
“Most existing coal and gas stations will retire over the next 15 years, and it will be cheaper to replace them with wind and solar PV,” Prof Blackers said.
Researcher Dr Matthew Stocks said more interconnectors were essential for a zero emissions grid to work because pump hydro storage would only support a state where the sun was not shining or wind not blowing for about a day.
ANU was also leading a study to map potential short-term off-river pumped hydro energy storage sites that could support a much greater share of renewable energy in the grid funded by the Australian Renewable Energy Agency.
Mr Turnbull has also signalled his support for pumped hydro storage.
But he has criticised SA for its proportion of wind power without storage, accusing the State Government of “negligence”.
Federal Government modelling showed the energy bills of a restaurant in Adelaide’s CBD have skyrocketed in the last decade from $8211 in 2007 to an estimated $18,974 this year.
While hotels in Mt Gambier — used as a typical regional small business — have also been hit, up from $4153 in 2007 to $9483 this year.