Boost in Revenue for Wind and Solar Projects

Exciting news for wind and solar projects in the south-west of New South Wales and north-west Victoria as the latest annual grid ratings indicate a probable increase in revenues for the upcoming year.

Over a dozen projects in the region, including those in the area known as the “Rhombus of Regret,” are set to benefit from improved marginal loss factors, which are crucial for determining revenue boosts. Marginal loss factors are linked to the Australian Energy Market Operator’s evaluation of electricity losses on the grid, influenced by congestion and limited grid capacity. A rating of 1.0 signifies that all output is credited as delivered, while a rating of 0.75 indicates a quarter of the output is lost.

Notable Improvements

Among the projects seeing significant enhancements are the Broken Hill solar farm and the nearby Silverton wind farm. The draft numbers released by the Australian Energy Market Operator reveal substantial improvements in their marginal loss factors, with Broken Hill’s rating set to rise to 94.5 from 77.8, and Silverton’s to 90.5 from 80.5. These improvements are partly attributed to the commissioning of the new Broken Hill big battery, which aids in storing excess output that cannot be transmitted down the single line to the grid.

Additionally, solar projects in other parts of the south-west are also experiencing positive impacts, with Limondale’s marginal loss factor increasing to 89.6 from 77.6. Similarly, solar farms like Colleambally, Darlington, Hillston, Junee, Sebastopol, Walla Walla, and Wyalong are witnessing substantial boosts in their ratings.

Grid Upgrades and Storage

Projects within the “Rhombus of Regret” are not the only ones benefitting from these enhancements. Solar farms such as Cohuna, Gannawarra, Kiamal, Wemen, and Yatpool are also seeing increases of over five per cent in their marginal loss factors. These improvements are attributed to grid upgrades and the rise in battery storage capacity. In Queensland, the Clare, Whitsunday, and Kidston solar farms have also received a positive outlook.

However, some solar projects are facing challenges due to increased economic or voluntary curtailment, particularly during periods of negative wholesale prices. This curtailment leads to certain projects choosing to halt their output rather than paying others to take their excess solar energy.

Challenges and Penalties

While many projects are benefitting from these changes, some wind and solar projects are adversely affected by alterations in grid flows, especially between different states. Projects in the north of NSW, such as the Sapphire wind farm and the New England solar farms, are experiencing setbacks due to increased flows and competition from Queensland following a recent grid upgrade.

In South Australia, projects in the south-east, including the Lake Bonney and Cabinda wind farms, are facing penalties, along with the Tailem Bend solar farms and big battery. Despite this, most other projects in the state are seeing minor setbacks.

Overall, the renewable energy sector in New South Wales, Victoria, and Queensland is poised for growth and development, with various projects benefitting from improved grid ratings and storage capabilities.