Surge in green energy risks Victoria grid security
Victoria needs targeted investment in electricity transmission infrastructure as surging renewable supplies limit electricity stability.
Victoria needs targeted investment in electricity transmission infrastructure as surging renewable supplies limits electricity stability, the Australian Energy Market Operator said, while the exit of the Yallourn coal plant could strain the network.
The state recorded 1.2 gigawatts of renewable generation that either connected or started commissioning in the last 12 months with 26.5GW of extra wind, solar and storage in the development pipeline while rooftop solar grew to 3.1GW.
While the state’s power system remains secure, the growing influence of clean energy in areas where there are network limitations underlined the need for spending on infrastructure to allow supplies to connect to the grid.
Victoria has a target of 40 per cent renewable energy generation by 2025 and 50 per cent by 2030.
“AEMO is progressing a suite of network development projects over the next decade, to address system challenges, maintain supply reliability and system security, and meet government policy objectives such as the Victorian Renewable Energy Target,” AEMO chief executive Daniel Westerman said.
AEMO has previously warned the expected exit of Victoria’s Yallourn coal plant in 2028 and NSW’s Vales Point and Eraring units from 2029 would see reliability gaps in Victoria from 2028-29 and NSW from 2029-30 if no back-up generation or transmission projects are delivered to market.
The power grid operator said it had identified potential strains on the network from Yallourn’s exit but expects enough generation will be in place to fill the gap.
“AEMO has identified potential limitations on the network between Melbourne and the Latrobe Valley, which may require changes to how the network is configured following Yallourn retirement,” the regulator said in its Victorian annual planning report. “Multiple developments are expected to fill this gap, including 26.5GW of additional proposed renewable generation projects (wind, solar and storage), the 350MW, four-hour, large-scale Jeeralang Battery, and proposed transmission network investments, such as Victoria – New South Wales Interconnector West and Marinus Link.”
Separately, Energy Security Board chair Kerry Schott will step down after leading the advisory body for four years. As previously announced, the ESB now comprises three rather than five members and will be led by Australian Energy Market Commission chair Anna Collyer. AEMO’s Mr Westerman and Australian Energy Regulator chair Clare Savage are also on the board.
Ms Schott was known for her forthright views on the state of Australia’s energy market and has repeatedly predicted the early retirement of coal from the power grid as renewables and storage boosts its penetration in the system.