Queensland’s Heatwave Drives Record-Breaking Demand for Solar Energy, Surpassing Coal

Record Demand in Queensland Electricity Grid During Heatwave

The Queensland electricity grid broke its demand records on Monday during a severe heatwave, surpassing the previous records by a significant margin. Despite the high demand, the market operator reported no supply issues and relatively moderate prices. The state energy minister praised solar energy for its contribution to the grid and its impact on the coal industry.

Queensland has the highest number of rooftop solar installations in the country, with over one million installations. However, it remains heavily reliant on coal, accounting for 68.9% of its energy mix in the past year. Despite this, the state government has set renewable energy targets of 50% by 2030, 70% by 2032, and 80% by 2035.

The heatwave served as a test for the grid’s capabilities, and it performed admirably. The peak demand, including power consumed from rooftop solar, reached 12.975 GW in the early afternoon, breaking the previous record by over 1.2 gigawatts. The grid demand, excluding rooftop solar, peaked at 11.036 GW later in the day, surpassing the previous record by nearly a gigawatt.

Remarkably, despite the high demand, the wholesale electricity price remained below $100/MWh during both peaks. This can be attributed to the significant contribution of solar energy. The state energy minister highlighted the role of solar in ensuring a stable supply during the peak demand.

Rooftop and utility-scale solar accounted for over 47% of the demand during the early afternoon peak, and solar’s share of total demand exceeded 50% from 9am to 1pm. Even during the new peak of grid demand, solar still accounted for a quarter of the total supply. The prominence of rooftop solar significantly reduced the need for coal-generated power during daylight hours.

Wind energy played a minor role throughout the day, with the wind output never exceeding 200MW. Queensland currently has limited battery storage capacity, with only two big batteries in operation. However, more big batteries are being developed, which will increase storage capacity and introduce new dynamics during the evening peak.

Despite the reliance on peaking gas generators, wholesale prices remained relatively stable, peaking just below $10,000/MWh. This outcome validated the state government’s confidence in the grid’s reliability. However, local storms did cause some power outages for approximately 40,000 customers due to damage to transmission lines and other infrastructure.

The state-owned generation assets in Queensland provide stability and are not subject to pressure from private companies regarding closure timetables. This ensures a consistent power supply, unlike situations in other states where private companies have failed to make their plants available when needed.

The Queensland electricity grid successfully handled the record demand during the heatwave, thanks to the combination of solar energy, peaking gas generators, and state-owned generation assets. The state transmission company, PowerLink, commended the network’s performance and its ability to provide reliable power to Queenslanders during extreme conditions.