Record high clean power ratio in Oz

 From The Age

Australia’s clean-energy revolution is continuing to accelerate, with new data revealing renewable power supplied more than 60 per cent of the nation’s main grid for the first time during a half-hour period in September.

The influx of large wind and solar farms coupled with a boom in rooftop solar have been radically reshaping the National Electricity Market in the past 12 months, driving down daytime wholesale prices to levels where the dominant sources of power – coal and gas – are struggling to compete.

In a report to be released on Friday, the Australian Energy Market Operator (AEMO) has declared the penetration of renewables reached a record high, accounting for 61.4 per cent of total electricity on September 24 from 1-1.30pm.

Over the whole September quarter, renewables made up an average of 31 per cent of the generation mix, also a record.

AEMO attributed the rise to the ramp-up of new wind and solar farms, a seasonally windy period, higher distributed rooftop solar, and higher average rainfall driving increased hydro-power output from Tasmania.

Higher renewable output also helped push wholesale electricity prices below $0 more often than ever before.

“The increase in renewable energy supply, combined with a mild August and COVID-19 restrictions reducing demand, led to wholesale electricity prices being negative or zero for 16 per cent of trading intervals, more than double the previous record of 7 per cent in the fourth quarter of 2020,” AEMO said.

Rock-bottom wholesale prices – which regulators say are good news for consumers because they may eventually translate to lower bills – have been piling enormous pressure on the viability the coal-fired generators that supply the bulk of Australia’s power. Coal plants are now regularly running at a loss as they are unable to compete with cheaper renewables during the day.

“In Victoria, average spot prices between 10am and 3.30pm fell from $30 a megawatt-hour in 2020 to just $0.01 a megawatt-hour during August and September,” AEMO chief markets officer Violette Mouchaileh said.

“This follows South Australia achieving average daytime prices below zero consistently between 10am and 3.30pm during the March 2021 quarter, the first time in the National Electricity Market’s history.”

It's obvious that coal is on the way out.  Though not if the right-wing Federal Government of Australia can help it.  

However, the Morrison government and some energy industry leaders are ramping up warnings that unexpectedly early shutdowns of coal-fired generators could raise the danger of blackouts or power bill spikes in the future.

Federal Energy and Emissions Reduction Minister Angus Taylor is driving development of a capacity mechanism to spur private investment into “dispatchable” assets, capable of supplying on-demand power to support renewable energy when the wind isn’t blowing and the sun isn’t shining.

The policy has drawn fierce criticism from environmental advocates who have dubbed it “CoalKeeper” because it may see coal plants paid to guarantee future supply by remaining in the grid for longer. Mr Taylor has insisted the mechanism would be designed to be technology-neutral, with equal opportunity for gas, pumped hydro and batteries.

Source: The Age