New analysis from research organisation the Australia Institute shows that 3,959 GWh of renewable energy was curtailed in the National Electricity Market (NEM) in the 12 months to 31 May 2024. This represents about 9.3% of Australia’s total annual utility scale solar and wind generation for that period.
In a discussion paper prepared in collaboration with data analytics and engineering organisation Buildings Alive, the Australia Institute says that off-peak hot water systems have historically been set to operate at night but they could be reconfigured to consume electricity during the middle of the day, when there is an abundant supply of renewable electricity.
The Canberra-based think tank has calculated that shifting off-peak hot water systems to heat in the middle of the day could provide about 4,000 GWh of flexible demand per annum, helping offset the curtailment of renewables.
“If off-peak hours were moved away from the time of day dominated by coal-fired electricity and towards the time of day when the sun is shining brightest, curtailment of solar power supply could be reduced significantly,” the organisation said.
“This one simple change could redirect much of the clean, cheap renewable energy that is currently being wasted, or curtailed, by the National Energy Market during the day.”
Image: Australia Institute
The Australia Institute estimates switching off-peak hot water to the middle of the day could save up to $6 billion (USD 3.89 billion) in household electricity and energy costs by 2040.
Buildings Alive Chief Executive Officer Dr Craig Roussac said the proposed switch represents a significant opportunity to shift household electricity demand.
“This is the low hanging fruit of the energy transition,” he said. “There are significant gains to be made from this one relatively simple and cost-effective intervention in our energy market.”
“There are so many untapped and cost-effective technologies that can shift electrical loads to support the clean energy transition and domestic hot water is one of the most obvious.”
Australia Institute Executive Director Dr Richard Denniss has acknowledged that such a shift would not be without some difficulties but called on the federal government to make the necessary regulatory changes.
“The fact that we in Australia choose to waste cheap and clean renewable energy on a regular basis is absurd,” he said.
“We are turning our back on nearly 10% of the current renewable capacity in our grid.”
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
Blind Freddy saw that one! I never understood why the retailers didn’t give all new PV panel installation owners the option to choose daytime off peak 15 years ago…..