Grid Demand Swings: From Excess to Shortage

Victoria experienced a surge in operational demand, reaching a new high of 9,581 megawatts during a December heatwave, despite two coal generation units being offline. The state effectively managed the increased demand by leveraging record levels of renewable energy output.

Within 24 hours, the Australian Energy Market Operator transitioned from issuing lack of reserve warnings to highlighting a lack of demand for Victoria on December 21. This sudden shift underscores the dynamic changes occurring in the energy grid, challenging the notion of integrating inflexible nuclear power capacity.

Adapting to Fluctuations with Flexibility

Energy experts emphasise the importance of flexibility in both demand and supply to address such rapid fluctuations. By incentivising changes in electricity consumption patterns and deploying fast-reacting power sources like large batteries, the grid can effectively manage varying demand levels.

Market Response to Minimum System Load

The warning for minimum system load in Victoria on December 21 highlighted potentially insufficient demand due to factors such as sunny conditions, high rooftop solar output, and reduced business activity. Market notices like these prompt preparations for various responses, including instructing big batteries to stand by for potential charging.

If necessary, a solar switch-off mechanism may be employed as a last resort, although its application is limited and not widely favoured by households or policymakers. The forecasted minimum demand of around 1,643 MW aligns with concerns raised by Tesla regarding the challenges of supporting baseload power amidst increasing renewable energy integration.

Tesla’s submission to the federal nuclear inquiry warned of constraints on rooftop solar if significant baseload power, such as nuclear, were introduced. The company highlighted the impact of renewables on reducing the need for traditional baseload generation, leading to operational challenges and increased costs for consumers.

Giles Parkinson, the founder and editor of Renew Economy, emphasises the evolving energy landscape and the need for adaptive strategies to ensure grid reliability amidst changing demand patterns. With over 40 years of journalistic experience, Parkinson provides valuable insights into the energy sector’s transition towards a more sustainable and flexible future.