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March 11, 2021updated 10 Mar 2021 10:16am

Existing transmission set-up forces Australia to put connection caps on renewable electricity generation

The uptake of renewable energy generation has risked the existing transmission system originally built for coal-powered generation in Australia.

By GlobalData Energy

The uptake of renewable energy generation has risked the existing transmission system originally built for coal-powered generation in Australia. With the kind of growth expected in the wind and solar PV sectors, the current transmission infrastructure is bound to be overburdened and therefore should be revamped to check the issue of intermittency linked with renewable electricity generation. Connection caps based on renewable energy zones can be introduced to help the orderly addition of renewable power plants to the transmission lines.

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The Australian transmission networks are divided into National Electricity Market (NEM), Western Australia, and the Northern Territory. NEM is the largest operator and two-thirds of its coal-fired capacity is expected to be closed by 2040, which might result in grid-imbalance.

The country has not expanded its transmission lines infrastructure much. Hence, the existing lines should be revamped to support the spurt in renewable energy generation.

Australia’s transmission networks are likely to grow at a compounded annual growth rate (CAGR) of 0.4% from 53,398 circuit kilometres (Ckm) at the end of 2020 to 54,585 Ckm at the end of 2025.

With several federal and state-level incentives to promote renewable energy, Australia has witnessed a massive surge in solar PV and wind power installations. On the back of the renewable energy target scheme and other government-aided incentives, the country is expected to witness a contribution of around 29% for solar PV and wind together at the end of 2020.

These technologies are expected to further contribute around 46% by the end of 2025. Solar PV is expected to grow at a CAGR of 14% during 2020-2025. During the same period, the wind is expected to witness growth at a CAGR of 21%.

With several Australian states committing to the addition of renewable energy installations, which are associated with intermittent supply, the country has to relook and try to refurbish its existing transmission lines to address the network congestion amid the rapid growth of weather-dependent renewable power.

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Free Report
img

Battery energy storage will be the key to energy transition – find out how

The market for battery energy storage is estimated to grow to $10.84bn in 2026. The fall in battery technology prices and the increasing need for grid stability are just two reasons GlobalData have predicted for this growth, with the integration of renewable power holding significant sway over the power market. Over the last decade, various new digital and smart technologies have been integrated, with countries aggressively promoting the modernization of grids, enhancing the grids’ capability to meet present and future requirements. As part of the effort, batteries are being deployed for a wide range of uses. A few such uses include aiding smart grids, integrating renewables, and creating responsive electricity markets. Read this report for expert insights into:
  • Market size and growth
  • Key drivers and restraints
  • Regional trends
  • The impact of the commodity price increase on the battery prices
Get ahead of this growing market and win big by utilizing our report.
by GlobalData
Enter your details here to receive your free Report.

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