Victoria now relying on SA for power as wind production rises and coal plants close

Green-powered South Australia is now sending Victoria more electricity than it takes back as wind production surges — the first time this has happened in nine years.

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Green-powered South Australia is now sending Victoria more electricity than it takes back as wind production surges, leading energy experts to warn that more storage is the key to keeping the local grid stable.

A major report from the Australian Energy Market Operator has revealed SA was a net exporter to Victoria during the 2017-18 financial year, marking the first time that has happened in at least nine years.

However, the switch is mostly due to the closure of Victoria’s huge Hazelwood coal-fired power station, leaving it more reliant on SA for power.

AEMO warns both states are at risk of forced blackouts this summer due to possible power shortages.

SA’s emergency diesel generators could be needed to keep lights on. It says plans to link SA and NSW with a new interconnector “will be critical to help maintain reliability in an efficient manner”.

SA Energy and Mining Minister Dan van Holst Pellekaan has seized on the findings as evidence his election pledge to deliver the NSW link should be fast-tracked.

He said a new scheme to add subsidised home batteries to rooftop solar systems would also help better use SA’s renewable power. Just under half of SA’s power supply is renewable.

Wind turbines near Snowtown in South Australia. Picture: Tait Schmaal

The AEMO report also confirms SA still has the country’s highest power prices and says further growth of intermittent wind and solar energy will pose further technical challenges.

SA has traditionally been a major importer of electricity from Victoria, the only state to which it is connected. However, the closure of the massive Hazelwood coal-fired power station in Victoria’s Latrobe Valley last year eliminated about 25 per cent of its supply.

In the past financial year SA’s power consumption remained flat but production surged 27 per cent, resulting in more energy going to Victoria to cover the shortfall.

“AEMO forecasts risks to supply in the next five years in South Australia, due to the region’s interconnectedness with Victoria,” the report states.

“High risks of load shedding projected in Victoria are likely to result in any supply deficit being spread across both Victoria and South Australia.”

Past AEMO reports have warned of a one-in-three risk of forced blackouts for Victoria this summer and one-in-10 chance for SA. Its latest update says emerging shortages in Victoria could result in a “significant increase” in the danger for SA.

The report says SA’s diesel generators “are available as a last resort and would reduce the risk of supply shortfalls”.

The report also revives concerns about the staged closure of ageing gas-fired power stations on Torrens Island, near Port Adelaide, from next year.

However, the risk of forced blackout begins rising significantly from 2020. That horror scenario would only occur if no other power plants opened.

The AEMO report finds 56 new projects are being considered for SA, with a combined capacity about four times the state’s average daily use. None are coal, and six are gas. The rest are a combination of solar, water, storage and wind.

“System strength needs to be more actively managed,” the AEMO report warns.

“There is increased need for fast-start and rapid-response technologies to accommodate changes in renewable energy output and improve power system security.’’

It singles out the Tesla “big battery’’ near Jamestown as a new technology which is helping to stabilise the grid.

Mr van Holst Pellekaan urged households to sign up for the battery program to cut prices and secure supply.

“The installation of 40,000 batteries will reduce demand on the grid which will ultimately result in lower prices for all SA households,” he said.

Opposition energy spokesman Tom Koutsantonis has warned more interconnection could weaken SA’s energy security, as major companies consolidate over the border.