Networks prefer solar and batteries over traditional power supply due to their efficiency and sustainability

Transition to Standalone Power Systems in Australia’s Remote Areas

Network operators in Australia are increasingly turning to standalone power systems based on renewable energy and battery storage as a more reliable and cost-effective alternative to traditional poles and wires in remote areas. This shift is evident in locations such as Bulahdelah, north of Newcastle, and Moruya on the New South Wales south coast, where off-grid solar, battery, and diesel generator systems have been successfully implemented.

These standalone systems, owned and operated by Essential Energy, are entirely disconnected from the main grid infrastructure and cater to individual customers or small clusters of customers. Unlike microgrids, which can still be connected to the grid, these systems operate independently, offering the same level of service and reliability as grid-connected customers.

Cost-Effective Solution

Essential Energy’s Chief Operating Officer, Luke Jenner, highlights that transitioning to standalone power systems is not only beneficial for customers in remote areas but also proves to be cost-effective for the network operator. By eliminating the need to maintain extensive poles and wires in remote regions and clear vegetation, Essential Energy can provide a more efficient and reliable service to its customers.

The breakeven point for these systems is approximately equivalent to 3 kilometres of power lines, with the cost of setting up a system averaging around $250,000. This cost varies depending on the specific requirements of the customer, both present and future. Jenner explains that the cost breakdown of around $83,000 per kilometre reflects the expenses associated with maintaining lines in challenging terrains or densely vegetated areas.

Expansion and Future Plans

Essential Energy has identified around 2000 customers across the state who are economically viable for transitioning to standalone power systems. Currently, 14 customers have already adopted this solution, with plans to facilitate 400 more installations over the next five years. The network operator is seeking regulatory funding to support this initiative, expecting final approval for its draft plan in April.

As the cost of off-grid systems decreases and the expenses of maintaining grid infrastructure continue to rise, the viability of standalone power systems is expected to increase over time. This transition marks a significant shift towards more sustainable and efficient energy solutions in remote areas.