In Australia,coal and gas are still the dominant sources of the power mix,with renewables accounting for less than 30 per cent.
However,after 3.3 gigawatts of new wind and solar power capacity were plugged into the nation’s main grid during 2020,the Australian Energy Market Operator (AEMO) has described the pace of change as “staggering” and believes it is feasible for renewables to make up more than 90 per cent as early as the mid-2030s if the trajectory continues.
“When you look at the numbers,this is nothing but absolutely staggering,” AEMO chief system design officer Alex Wonhas told the Australian Energy Week conference in Melbourne. “Australia is undergoing the fastest transition of any energy system in the world.”
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The influx of cheap renewable energy has been piling pressure on the nation’s traditional power generators by driving daytime wholesale electricity prices down to levels where many coal-fired operations are expected to be cash-negative. This year,EnergyAustralia brought forward the closure of Victoria’s Yallourn coal plant to 2028,four years ahead of schedule. There are predictions across the industry that further coal closures may follow.
“I wouldn’t be surprised if we see more of that,” Dr Wonhas said.
In response,companies including ASX-listed AGL and Origin have been increasingly seeking to expand into new technologies and digital offerings in order to be able to offer a range of energy solutions to attract customers and find new revenue streams. Home batteries,solar panels and demand-management technology continue to grow in popularity,while “virtual power plants” – groups of hundreds or thousands of homes with solar and batteries linked up to manage demand and energy flows – are being trialled across the country.