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Solar and wind revolution hitting new targets

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By John Beveridge - 
Solar wind revolution Australia energy technology renewable coal

去年10月,太阳能为南澳大利亚提供了超过100%的需求。

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There is a quiet revolution going on in Australia’s power network as a combination of increasing solar and wind power and more power storage options are literally squeezing the life out of fossil fuel generation.

Just a week ago South Australia was entirely powered by solar for a day, with sun power reaching an amazing 106.1% of state demand.

Obviously a hot and sunny summer is helping to achieve that sort of milestone, but it is worth pointing out that over the entire month of October last year, solar power provided more than 100% of South Australia’s demand.

The cynics will point out that South Australia’s power needs are relatively modest and that such figures wouldn’t be possible without the backing of interstate gas and coal generation to meet demand when the wind may not be blowing and the sun not shining.

Business case for new coal generators has evaporated

There are two replies to that, though: the business case for new coal generators across Australia has virtually evaporated amid falling wholesale prices, and larger scale power storage options, as well as new solar and wind farms coming online all of the time.

Storage has long been the Achilles heel of renewable energy with batteries only part of the solution, but that is changing now with projects such as pumped hydro and compressed air storage holding the promise of storing power longer and more cheaply than current grid-scale lithium batteries.

New storage technology will boost renewable generation

Thermal storage solutions using molten salt or silicon and even water at differential temperatures are all vying to add further solutions to the concept of pumping water uphill or compressing air within disused mines to ensure that solar and wind generation can actually last overnight.

Some or all of them will be competitive, creating the opportunity for South Australia’s experience of being entirely powered by renewable energy will one day be repeated right across Australia.

Before we reach that aim – with or without a price being put on carbon – there are bound to be some tricky times as the coal generators in particular come under intense profitability pressures due to falling wholesale power prices during the day.

Coal stations forced to lose money

Low daytime wholesale prices virtually guarantees that coal power stations will be losing money as they are operating during times when solar and wind are producing plenty of power.

Unlike other forms of generation, coal struggles to turn on and off quickly or even ramp power output up and down so coal generators will find it challenging to make money as new, large scale solar and wind projects, and more rooftop solar extend the low wholesale prices over more hours of every day.

Keeping the lights burning in Australia’s workplaces and homes will be difficult if the profitability of the existing coal generators comes under further pressure.

However, if there is one thing we have learned from the widespread adoption of renewable generation, it is the enduring attraction of the combination of lower carbon emissions and lower prices, which will continue to drive innovation in Australia’s electricity grid.