2024 Solar and Wind Curtailment Impact on Snowy Hydro
New findings from Rystad Energy have uncovered that 4.5 terawatt-hours of large-scale solar and wind power generation were restricted in 2024, equivalent to the yearly renewable energy production of the original Snowy Hydro scheme.
Energy curtailment, the intentional reduction or shutdown of electricity generation, is typically carried out due to grid overcapacity or economic factors, where the cost of producing energy exceeds the market price.
Renewables Struggle with Grid Congestion in Australia
In Australia, renewable energy sources are experiencing challenges in managing grid congestion within the National Electricity Market, despite being more cost-effective and environmentally friendly compared to coal and gas generation.
The data provided by Rystad, shared by Clean Energy Council grid policy officer Ana Spataru on LinkedIn, does not differentiate between various types of curtailment but does highlight the differences in curtailment levels and types across different states.
State-wise Curtailment Breakdown
Victoria recorded the highest total curtailment, primarily in wind generation but also in significant solar curtailment. This trend is attributed to Victoria’s reliance on brown coal generation, which has limitations on reducing output during peak daylight hours, resulting in coal being dispatched over renewables.
Meanwhile, in New South Wales and Queensland, large-scale solar faced the most curtailment, whereas wind generation was predominantly curtailed in South Australia.
Future Solutions and Developments
Rystad anticipates that the deployment of new large battery energy storage systems (BESS) across Australia in 2025 will help alleviate curtailment issues. Additionally, hybrid projects and renewable energy hubs, combining solar and wind farms with battery storage, are seen as part of the solution to address curtailment challenges.
The data underscores the importance of addressing grid constraints to fully utilise renewable energy sources and transition towards a cleaner energy mix.
