Electric Vehicles could overwhelm power grid in next decade, consultant warns
Australia’s grid faces a looming threat as households take up mass charging of EVs at night, industry expert warns.
Australia’s power grid faces a threat and may become overwhelmed in the next decade as households take up mass charging of electric vehicles at night-time, consultancy Cornwall Insight Australia has warned.
Data predicts significant household peaks in electricity charging demand between 7pm to 10pm after EVs have been used during the day which could cause major problems for the network given existing heavy use of the network at the same time.
“This convenience-driven charging behaviour is projected by the Australian Energy Market Operator to be the primary charging mode for the next 15 or so years. If this view of EV charging behaviour becomes a reality, the peaks have the potential to exacerbate evening energy demand issues and could cause significant problems for network operators and planners,” Cornwall said.
A greater focus on EV charging behaviour will need to be considered to ease the grid crunch including the use of financial incentives such as tariff structures, timers and smart chargers to shift and spread the demand through the night and increase co-ordination of charging with renewable energy output, Cornwall said.
It forecasts EVs will overtake internal combustion engine vehicles by 2038-39.
“It is clear that the changing patterns of vehicle ownership will be a substantial factor in shaping Australia’s future energy systems and markets,” Cornwall energy consultant Con Dimitrakakis said.
Power prices surging, with no sign of respite
Electricity costs have surged with wholesale prices hitting a new record in June of $349 per megawatt hour and showing no signs of easing anytime soon, JP Morgan said.
The June price was a 162 per cent leap from the same time last year while LNG spot prices have soared to $US38 per million British thermal units, four times normal levels, despite being a lower demand seasonal period during the Northern Hemisphere summer.
Russia’s invasion of Ukraine has roiled global commodity markets while a series of coal breakdowns across the power grid added to high power prices locally.
“Upward pressure is unlikely to ease anytime soon given the impact of global gas prices on generator fuel costs,” JP Morgan analyst Mark Busuttil said.
Futures prices of $222 per MWh across the four mainland states in the national electricity market represented a 44 per cent jump from forward prices levels in May and are now 364 per cent higher than the same period a year ago.
Grid demand in June rose 8 per cent on May due to a cold start to winter and was 2 per cent above June 2021 levels.
Coal plants accounted for 60 per cent of energy generation in June from 68 per cent a year earlier with wind, gas and hydro making up the gap.
The deepening energy crunch has also forced more households to switch providers with a string of smaller retailers turning customers away due to their exposure to high spot prices in the market.
Retail churn hit 29 per cent in June, the highest level on record, with Victoria at 34 per cent.
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