Record High for Renewables in Australian Grid

Australia’s main grid experienced a significant increase in the share of renewable energy on Wednesday, reaching new highs and pushing coal and overall fossil fuel shares to record lows despite the highest levels of native demand observed this spring.

Renewables typically achieve new production and market share milestones in spring due to favourable conditions and mild temperatures, resulting in relatively low demand.

Record Market Penetration

On Wednesday, the market penetration of renewables soared to a new high of 75.9 per cent, surpassing the previous spring record of 73 per cent set in early September. Specifically, the share of wind and solar, known as variable renewables, reached a new peak of 74.6 per cent, a significant increase from 71.7 per cent in early October, as reported by data from GPE NEMlog.

Factors Influencing Renewable Share

The rise in renewables share is influenced by various factors beyond just the capacity of wind and solar production. These factors include negative wholesale prices, network constraints that may limit output, and the grid’s capability to accommodate high levels of wind and solar energy.

The Australian Energy Market Operator has identified instances where the “potential” share of renewables in the main grid exceeded 100 per cent of demand. However, the necessary engineering adjustments to ensure system security have not yet been fully implemented to facilitate this scenario.

According to GPE NEMLog, the combined output of renewables peaked at 23,645.2 MW at 1.05 pm (AEST) on Wednesday, a substantial increase from the previous record of 22,177.3 MW in February this year.

The output from wind and solar sources also reached a new high of 23,241 MW, significantly higher than the previous record of 21,612.6 MW in March. Despite this achievement, 2,500 MW of large-scale wind and solar power was curtailed at that time.

Notably, a significant portion of the energy output originated from residential and commercial rooftops, setting a new record of 19,515 MW, surpassing the previous peak of 19,410 MW established in December last year.

Impact on Coal and Fossil Fuels

Despite the impressive performance of renewables, the share of coal plummeted to a new low of 22.9 per cent at 12.25 pm (AEST), a considerable drop from the previous low of 26.5 per cent recorded in September. The combined share of coal and gas also reached a new low of 23.8 per cent.

Overall, the grid experienced a new peak in spring underlying demand, reaching 32,246 MW, surpassing the previous high of 32,145 MW set in November last year.

These developments underscore the ongoing transition towards renewable energy sources in Australia’s energy landscape, marking a significant shift away from traditional fossil fuels.