Power giants AGL Energy and Origin Energy are reportedly concerned the proliferation of renewable energy could generate a new wave of volatility in Australia’s electricity grid.
A lack of sufficient back-up capacity could unleash instability throughout the market, say key industry participants. This has prompted calls for more emphasis on ensuring intermittent renewables have adequate back-up systems in place, to spare and protect Australian consumers from a supply deficit.
With the Opposition pledging a 50% renewable energy target by 2030, the scramble to secure this dispatchable, fall-back mechanism is in place has been amplified.
Luke Grant says the warning personifies the pitfalls of renewable energy.
“ This to me suggests renewable energy evangelists and the intermittent energy they champion is just that: intermittent, sporadic and unreliable.”
Economist Judith Sloan agrees, saying more than reliability is at stake.
“ If we’re going to have a lot of renewables, we’ve got to have what we call firming capacity. We have to have the backup right,” she says.
“ Unless we think about that, we’re going to get to a position where we switch the switch and the light doesn’t come on or we switch the switch and it’s going to be too expensive.”
“ Even in the best scenario, solar might give you power 30% of the time, because the sun goes down everyday. Wind may be at best 50%. You’ve still got a really big gap in how you’re going to fill the time when power is demanded but there is no supply.