The Grattan Institute’s Energy Program Director Tony Wood has warned of solar power flooding electricity markets during the day, depressing prices and causing grid problems. Speaking to the Guardian Australia and the ABC, Wood warned that it would result in FITs being reduced and make a case for the Small-scale Renewable Energy Scheme to be scrapped.
“We’re getting to the point where the amount of solar power being produced in the middle of the day is so much that it can start to have an impact on the stability of the grid,” Wood told the ABC.
Speaking to the Guardian Australia Wood expanded his message, noting that midday solar output could be produced at such levels that it would prove inefficient for rooftop PV to receive subsidies, as the power it produces would be “essentially worthless” at some times of the day.
Wood’s comments came off the back of the Clean Energy Regulator’s confirmation that 2017 was a record year for small-scale solar in Australia, with over 1.07 GW being installed.
Responding to Wood, Green Energy Markets’ Tristan Edis says that while the underlying issue is legitimate and worthy of consideration “sometime within the next decade”, that “we can monitor and grapple with it.”
“The questions are, how big a problem is it, when will is occur, and what are our options for managing it? I think you’ll find the solutions are relatively straightforward and cheap.”
What appears true is that as small-scale solar installations remain strong, the C&I segment accelerates, and utility-scale PV development brings significant capacity online, particularly in Queensland in the short term, that wholesale electricity prices are likely to fall. In turn, this will exert downward pressure on solar FITs received by households, undermining the economics of installed systems.
At present, FITs stand at $14 cents/kWh in South Australia, $11.3 cents in Victoria, $10.9 cents in New South Wales and $9.5 cents in Queensland.
However, Edis, a former Grattan Fellow, argues that even if these do decline by a few cents as wholesale prices fall that rooftop PV will still remain an attractive investment for households – particularly if systems are paid for in cash or by drawing down on a home mortgage.
“There are miles to go before those people are under water because of their solar investment,” says Edis.
In terms of grid stability, there are simple solutions available for grid operators, Edis continues. In particular, shifting electric storage hot water loads to the middle of the day when PV output is at its peak could result in hundreds of MW of demand – essentially mopping up any ‘excess’ solar production. In Queensland, around 80% of hot water systems are of the type suitable for this to happen.
Battery electrical storage is also another obvious method by which midday production can be utilized, rather than wasted. Edis notes that by the time solar generation becomes genuinely challenging for grid operators, the chances are good that storage prices will have fallen sufficiently, making them “reasonably affordable and an attractive investment to soak up that generation.”
While falling PV FITs won’t be welcomed by solar households, declining wholesale prices are clearly a positive for all electricity consumers and for the Australian economy more widely. And as aging coal-generator continue to be closed in the near future, there will be further generation gaps left be filled by clean electricity sources at all times of the day.
“Prices are going to go down,” Edis concludes, “this is something to celebrate, not a problem.”
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It appears Australia is still is “In Love” with its Coal Industry and other Fossil Fuels.
Since Solar Systems ALONE cannot meet 100% of Demand at ANY TIME…. TODAY so if there is a “surplus of Solar Energy” it clearly shows there are Other Power Plants that are not being setback/unloaded… as they keep Polluting.
Now…. what does it mean to setback/unload a Power Plant?
Every Turbine (Gas, Coal or even Nuclear) has a Governor (like an Accelerator in your Vehicle) which, when given a signal, setbacks (or picks up load) the Power Plant in… seconds only.
Similarly The Generator has a “Voltage Regulator” that automatically adjusted the Voltage/VARs… in a fraction of or a second or two….. and control the amount of Electricity fed to the Grid.
That is all that there is to setback/unload. All Power Plants have been doing this regularly for over a hundred years now.
So.. the question is why is it when Clean Solar Energy is connected to the Grid… there is a “surplus”. Without Solar Energy what were all these Fossil Plants over a hundred years doing at night when the demand drops drastically…. or did they daily shout like “chickens without a neck”…. we have surplus power…. They just setback/unload.
As Set-backing/Unloading happens in seconds… this “disturbance” then works its way through the Power Plant as Feed water, Fuel etc… is reduced to its new load conditions. Less Fuel is burnt, Less Pollution but also Less Revenue. While the former is good for ALL…. this last one is what drives all the “running and shouting”… nothing else.
If one recalls the initial societal query….. why Solar…???… it is because it is Clean, it reduces Pollution, its saves Lives and DALY (Disability Adjusted Life Years) Suffering, Restores the Health and Life of Forests and Wildlife too.
So if there is “surplus” Power in the day…. which should be setback/unloaded… the Health and Environment Saving Solar Energy or The Polluting Fossil Power Plants?
Unfortunately as every setback/unloading also reduces Revenue (but also Fuel Costs.. which is ignored) Fossil Power Plant want to continue and Pollute and still do not get it. THE PEOPLE WANT ENERGY BUT ALSO THEIR HEALTH AND ENVIRONMENT TOO….. and as Fossil cannot do the latter two, it is a “Non-Preferred Option” ALWAYS…. but Fossil Plant Owners want to continue to be “rewarded” for their killing(s) ways…. here we go again….
Just Setback/Unload Fossil Plants when there is Solar Power as they do at night and Supply/Demand will Balance itself.
Once Solar Power “takes over” and Fossil/Nuclear Plants are shutdown in the future…. what will you do at night…. the answer is Energy Storage… another story for another time and another day…