South Australia's Energy Solution - A secure transition to affordable renewable energy
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South Australia's
Energy Solution
A secure transition to affordable
renewable energy
www.energymining.sa.gov.au
Foreword South Australians are proud that our
power system has achieved many
We will also work with SA Power Networks to bring
forward $10 million to enhance voltage management
this year. Each and every day, this saves consumers
global “firsts”, but are painfully money by making appliances and rooftop solar systems
aware of the economic and social work better. It will allow us to host more rooftop solar
securely and provide the critical conditions which AEMO
costs of a disorderly transition. says it needs.
For over a decade, the growth in rooftop solar PV has
We have been taking precautionary steps for over a year
helped consumers manage their energy costs and
working with AEMO, SA Power Networks and ElectraNet
reduce emissions, but also disrupted the energy market
by updating protection schemes, introducing new
and challenged how we manage the power system. Now,
operating rules, and also new standards to deal with low
a third of South Australian homes have rooftop solar.
demand.
In 2017, the Australian Energy Market Operator (AEMO)
At the same time, we’re leading the world’s largest
warned that the growth in solar power could reduce
per capita roll-out of home batteries and have four
net demand on the grid to zero by 2025 and requires
batteries installed or being further developed. We’re
careful management. When it brought that forward
demonstrating how they can be used to stabilise the
the next year to 2023, the Government partnered with
grid.
AEMO, SA Power Networks, ElectraNet and the Essential
Services Commission of South Australia (ESCOSA) to look South Australia’s previously unmanaged transition to
into the future, and commissioned cutting-edge power 50 per cent renewable energy came at a significant
system modelling by AEMO. economic and social cost. And fortunately, we have
“
identified this legacy risk before history repeats itself.
This world-leading modelling has exposed that under
extreme conditions there are underlying risks to energy The Government wants an orderly transition to our
security due to a decade of unmanaged growth in new goal of net-100 per cent renewable energy, whilst
rooftop solar PV and recommended urgent actions to reducing bills even further and growing our economy.
The South Australian government will address this legacy by Spring this year.
It shows that it is absolutely critical for power system
This requires the right mix of interconnection, storage,
generation and smart technology to balance supply and
demonstrate genuine global leadership
demand.
security to deliver Project EnergyConnect (the SA-NSW
interconnector) as soon as possible. Without it, South Our Government will do it the right way, so that it
by achieving net-100 per cent renewable
Australians face unacceptable power system security benefits South Australians and encourages other places
risks, a moratorium on new rooftop solar, as well as to reduce emissions more quickly.
expensive interventions to bolster the grid and retrofit
energy through an orderly transition
That’s why we are doing the hard things now to address
existing solar house by house. past legacies and anticipate future challenges, and will
Until Project EnergyConnect is delivered, we will not yet follow the best expert advice to keep our system secure.
which delivers economic growth and
”
be out of the woods.
We now understand that a portion of the rooftop solar
competitive power prices for South installed over a decade turns off during disturbances,
amplifying shocks and making it harder to recover. This
Australian homes and businesses.
is most acute at times when rooftop solar provides the
great majority of the system’s needs.
AEMO has advised that it needs backstop capabilities Hon Dan van Holst
to manage rooftop solar, like it has with all other Pellekaan MP
generators, to balance the system in extreme
circumstances. Whilst this technical capability has been Minister for Energy and Mining
in solar systems installed since 2016, that capacity is not Government of South Australia
actionable for AEMO.
To make sure consumers can keep adopting rooftop
solar, we will deliver Project EnergyConnect and
implement early the direction of new national standards
to make that backstop actionable.
1 South Australia's Energy Solution Government of South Australia June 2020 2
The context
For over a decade, South Australians In November 2018, AEMO’s South Australian Electricity Report
updated its forecasts for negative operational demand
have been the world’s earliest to 2023, noting that the SA-NSW Interconnector (Project
and most enthusiastic adopters of EnergyConnect) would “improve system security and
rooftop solar. resilience by reducing the risk of islanding of the South
Australian network and helping mitigate system security
This means that to AEMO’s knowledge, South Australia has risks under minimum demand conditions”.
the first gigawatt (GW) scale power system in the world
which in coming years can generate as much power from The South Australian government took precautionary
rooftop solar to provide its midday needs. action and began working with AEMO, SA Power Networks,
ElectraNet and ESCOSA to better understand the challenges
In November 2017, AEMO’s South Australian Electricity Report of managing low operational demand conditions and the
forecast that rooftop solar could cause negative operational behaviour of rooftop solar during disturbances. The South
“
demand by 2025 which may “introduce operational Australian government commissioned ground-breaking
challenges for balancing the power system. The power power system modelling by AEMO to understand what
system and market will need to evolve to address these action, if any, was needed.
challenges, including utilising the opportunities from new
AEMO has now determined that negative operational
To AEMO’s knowledge, South Australia
technologies” such as storage and greater interconnection.
demand under normal conditions could occur in 2022, but
In August 2018, a lightning strike on transmission under extreme conditions could be achieved by Spring
is the first gigawatt scale power
infrastructure in Queensland caused a disruption 2020 on a sunny and temperate day with low economic
throughout the national market which resulted in South activity, such as a public holiday.
Australia separating (islanding) from the National Electricity
Market. The size of the disruption was increased by the
rooftop solar reducing its output due to many inverters
The report outlines that until Project EnergyConnect and
new smart capabilities for rooftop solar are in place, South
Australia will remain at an unacceptable risk of another
system in the world to approach zero
operational demand due to such
“tripping" and turning off during the disturbance.
black system event.
1600
high proportions of demand met
Net grid demand after rooftop solar
by distributed resources. Analysing
1400
1200
1000
these types of periods requires the
development of new sophisticated
800
”
600
400 20 19
20 20 models and pioneering of new
approaches.
200
20 21
0
20 22
20 23
-200
12 AM 6 AM 12 PM 6 PM 12 AM
— Minimum operational demand thresholds in South Australia
AEMO Technical Report - May 2020
Photograph Andre Gascoigne
3 South Australia's Energy Solution Government of South Australia June 2020 4
Two key challenges
The report from AEMO identifies
two key challenges that must be AEMO has declared that delivering
corrected immediately to manage
the risks from a decade of rooftop
Project EnergyConnect as soon as
solar uptake:
possible is absolutely critical for the
1. Ensuring rooftop solar PV
operates during disturbances
2. Minimum demand when
operating separate from the ongoing secure operation of the
There is now considerable evidence that many of the
inverters which manage the power generated by
National Electricity Market
If South Australia is separated from the National power system. If this project and new
smart standards for rooftop solar
solar panels will disconnect in response to voltage Electricity Market, there needs to be sufficient demand
disturbances. This could occur with a sudden outage and the right combination of power generators to
at a large power generator, amplifying the impact provide enough system strength, inertia, voltage
upon the grid. When rooftop solar is providing a large
amount of the state’s power needs, such an outage
management and frequency control to keep the
system secure. That means AEMO needs the same do not proceed, a moratorium on
new rooftop solar installations and
requires careful management to be able to rebalance capabilities to manage rooftop solar that it has for
the power system. This means that operating protocols other types of generators to ensure it has the right
and parameters for the power system need to be mix of resources to best manage those exceptional
updated to manage such an occurrence. This also
means that improved standards and testing for solar
circumstances. Whilst the existing standard for solar
inverters established in 2016 mandates remote other expensive interventions will be
required to be able to maintain power
inverters are needed to make sure that new and management capabilities, the communication
replacement solar installations will help maintain pathways and protocols do not exist to activate this
power system security in disturbances. feature. This will require new standards. AEMO’s report
“When South Australia is operating as
recommends that back-up capabilities be established
to manage solar output in emergencies, such as it did system security.
an island, it is now almost impossible in February for larger rooftop solar and grid scale solar
to maintain the frequency operating when South Australia separated from the national
standard for certain credible fault events market when storms damaged transmission towers in
if they cause distributed [rooftop solar] PV Victoria.
disconnections. This means that AEMO
may no longer have the means to operate “South Australia has already experienced
a South Australian island securely at times operational demand as low as
of high distributed PV generation and, 458 [megawatts] MW, and this is expected
as such, security risks will grow rapidly to reduce further by spring 2020. That
as more distributed PV is installed if the means there is an urgent need to establish
mitigating actions… are not implemented.” a back-stop that allows AEMO to curtail
distributed PV when extreme and unusual
— AEMO Technical Report
operational circumstances arise.”
— AEMO Technical Report
5 South Australia's Energy Solution Government of South Australia June 2020 6
In the time it takes you to finish
your morning coffee, an Australian
The huge transition currently underway across the
energy system means that all states will need to grapple
with the scenarios outlined in the short term and the
Taking action
household will have connected work contained in the report will serve to guide national
its new rooftop solar system and frameworks to better integrate solar PV into the National
Energy Market.
effectively removed its household
At AEMO, our goal is to make sure that consumers in
load from daytime grid demand.
South Australia and across the nation are able to take full
Currently, a new solar (PV) system is being installed on an advantage, both economical and operationally, of this
Australian home every six and a half minutes. With more technological revolution while not compromising the
than 2.2 million solar installations in place at the beginning overall secure, reliable and affordable operation of the
of 2020, Australia is leading the world in the uptake of power system.
rooftop solar. We are delivering all the
While we all can see that our power system is going
Today in South Australia, solar PV currently has the through the same type of transformational change
immediate actions recommended
capability to provide more than 1 GW of energy under the that many of us have witnessed in computing and by AEMO to help manage
right conditions, meaning that “consumer” power is by far telecommunications, there are two things that will never extreme conditions until Project
the state’s single biggest generator. This already world- change and must be respected – electricity will continue to
leading level of solar uptake is increasing by more than obey the laws of physics, and as an essential enabler of our
EnergyConnect is delivered.
200 MW, equivalent to the size of one unit of the state’s economy, it must also remain affordable. These actions will allow us to support energy security
largest gas-fired plant, each year. whilst allowing more households and businesses to
AEMO’s recommendations to the South Australian
securely choose rooftop solar:
In AEMO’s recently published Renewable Integration Study government aim to make sure that both can occur.
we laid out a multi-level game plan of the adjustments we 1. working with SA Power Networks to bring forward
will need to make in the operations and rules governing $10 million to enhance voltage management to
the power system that will allow us to accommodate a improve the performance of appliances and solar
future where the majority of electricity can be supplied by systems, allow more solar on the network and
renewable power. provide emergency backstop capabilities in case
of extreme conditions
Further to that, AEMO has undertaken a technical analysis
2. accelerating new smart solar standards ahead of
at the request of the South Australian government
national changes so that solar supports the grid
which examines the effects of small-scale residential and
— Audrey Zibelman during disturbances
commercial solar PV in the state, its impact on the security
CEO, Australian Energy 3. establishing constraints to manage the Heywood
of the system under certain scenarios and recommends
Market Operator interconnector to reduce the risk of the system
a range of actions to ensure the continued secure and
reliable operation of the network. until Project EnergyConnect is delivered
4. updating protection schemes and emergency
The technical report’s recommendation includes
protocols to make sure they are fit for purpose in
improvements to distributed voltage management,
low demand conditions
greater interconnection such as the proposed Project
EnergyConnect project and new emergency capabilities 5. increasing fast frequency control through the Grid
applied to solar PV for AEMO to manage the output of what Scale Storage Fund and rollout of home batteries.
is now a vast amount of generation in cases of emergency. We will continue take the best expert advice and work
AEMO considers each of these actions to be required for with AEMO to restore the resilience of the grid.
solar PV to support full consumer choice and economic
benefit - not making any changes is not a realistic option. If
we fail to make the changes required for distributed energy
resources integration, the requisite alternative measures
would be to limit new solar installations and costly retrofits
of existing installations.
Further, protective and more costly measures of this kind
will become increasingly likely if Project EnergyConnect is
not constructed and commissioned consistent with current
project timelines.
Photograph Andre Gascoigne
7 South Australia's Energy Solution Government of South Australia June 2020 8
Our energy solution
The four pillars
Project Grid scale storage
EnergyConnect
“
Our $50 million Grid Scale Storage Fund is accelerating the
roll-out of large grid-scale energy storage to address the
The South Australian government is fast-tracking the intermittency of South Australia’s renewable electricity
completion of an interconnector between South Australia supplies and improve our resilience.
Through our comprehensive energy
and New South Wales that will boost power system The Fund is procuring new, cutting edge services from grid
security, reduce bills, improve competition and unleash scale storage, such as the expansion of Hornsdale Power
more renewable power. We are providing $75 million in
solution, four key pillars underpin
Reserve (the big battery), showing how these technologies
underwriting to ElectraNet and TransGrid to deliver the
”
can provide the services once provided from traditional
project in the fastest time possible. power stations. This includes fast frequency response
our orderly transition to more clean, Project EnergyConnect's 800 MW capacity will be able to
deliver enough energy to power 240,000 homes and is
which keeps the frequency in safe limits by synthetically
mimicking the inertia that traditional generators provided.
affordable and reliable power.
critical to reduce the likelihood of South Australia being The Fund will improve our system security, while increasing
separated from the rest of the National Electricity Market. competition in the electricity market and utilising stored
It will also allow us to export our excess renewable energy renewable energy to meet help peak demand and stabilise
supply when demand is low. Its development will make the system.
South Australia an attractive place to be build new large Future projects will be announced during 2020 as
renewables projects and help secure billions of dollars of agreements are finalised.
additional investment in renewable energy projects and
hundreds of jobs along its route. The Project is advancing
through the Australian Energy Regulator’s process to ensure
consumers receive value for money, and final approvals are
expected by year’s end.
Home batteries Distributed energy
South Australia is leading the world’s largest per While weather has always impacted demand as heating
capita rollout of smart home batteries. This will help and cooling drive consumption, in South Australia weather
make the most of our rooftop solar to reduce prices also drives supply due to our abundant wind and solar
and support the grid. As of early June 2020, nearly energy. To make the most of this, we need to better align
150 megawatt-hours (MWh) of battery storage was installed consumption with periods of high renewable generation
with significant additional capacity pending installation. and make the most of “distributed energy” such as rooftop
solar and smart appliances through our $30 million
This means that the collective storage capacity of home
program.
batteries in South Australia is now larger than the original
size of the Hornsdale Power Reserve, the then biggest We have allocated $11 million of funding to bring forward
battery in the world. new business models which can trial demand management
to reward consumers whose homes and businesses
The roll-out is supported by the $200 million Home
support the grid. At the same time, we have secured
Battery Scheme grants and loans, the SA Virtual Power
national law changes to reward businesses who want to
Plant on Housing Trust homes with Tesla, and provision
reduce demand, and secured new national smart appliance
of batteries to homes being rebuilt after recent bushfires.
standards so that households can have smarter homes.
Home batteries help store excess rooftop solar energy for
use during times of peak demand in the early evening to We are also demonstrating and accelerating enhanced
reduce prices. voltage management, to allow us to host more solar in a
secure manner whilst improving the quality of power that
Households are being rewarded by joining Virtual Power
people receive, to make their solar and appliances work
Plants. The South Australian government is demonstrating
better.
how these can together provide grid stability to support
the security of the whole grid. By better aligning supply and demand, we reduce the need
for peaking generation and make the most of our abundant
renewable energy.
9 South Australia's Energy Solution Government of South Australia June 2020 10
Investment in
the grid “ We are confident that through
continued strong collaboration, and
wise investments, we can support the
”
The South Australian government will
state’s vision of achieving net-100 per
demonstrate genuine global leadership cent renewables.
by achieving net-100 per cent renewable
energy through an orderly transition — Rob Stobbe, CEO, SA Power Networks
which delivers economic growth and
competitive power prices for South
Australian homes and businesses.
As renewable energy replaced output from traditional generators
fuelled by coal and gas, the power system lost the system strength
they provided. This means that we need to further invest in our grid
to get the most out of our renewable energy opportunities.
With some of the highest rates of rooftop solar in the world, we are
also the first to learn about the challenges in managing a system
with very high levels of rooftop solar and low levels of midday Hornsdale
battery
demand.
With AEMO predicting that 90 per cent of power generated in
expansion
South Australia could be from renewable sources by 2025, the
government is focused on investing in our grid to keep our system
secure and bring down prices.
Whilst Project EnergyConnect is being delivered, AEMO has The Hornsdale Power Reserve is being expanded
instituted new operating protocols to manage low demand by the Grid Scale Storage Fund by 50 per cent to
conditions and manage our key link to the National Energy Market – provide a much faster and bigger response to
the Heywood interconnector – to boost security. system disturbances and store more power for
peak demand.
Synchronous condensers are being installed to provide system
strength whilst reducing bills by reducing our reliance on expensive The expansion is the world’s largest
gas generation for security. demonstration of how battery storage can
provide synthetic inertia, protecting the security
We are investing in fast frequency response which stabilises the of the grid by keeping frequency consistent. It
system through world-first demonstrations from grid scale batteries will result in a more secure and affordable power
and home batteries which can provide the same services through supply for the state.
Virtual Power Plants.
We are also improving the quality of power delivered to people’s
homes, by investing in voltage management so we can host more
rooftop solar and improve the performance of solar systems and
appliances.
We are also securing a change to the national rules to reward
energy consumers who can change their demand to make it
cheaper to manage the system.
These investments in power system security make South Australia
a global proving ground, allowing other jurisdictions to better plan
their transitions to renewable energy.
Significant and prudent investment in our grid will make power
more affordable, reliable and clean.
Photograph Andre Gascoigne
11 South Australia's Energy Solution Government of South Australia June 2020 12
Investment in
1 Project EnergyConnect 4 Grid fast frequency response
Project EnergyConnect is being fast-tracked to keep South More fast frequency response from grid batteries is being
Australia connected and reduce the risk of having to operate procured, such as the expansion of Hornsdale Power Reserve,
as an island. to make rapid corrections to address imbalances in the power
the grid
Delivery: 2022 (stage 1) & 2023 (stage 2) system.
Delivery: 2020
2 Heywood interconnector
Until Project EnergyConnect is delivered, new operating
5 Virtual Power Plant fast frequency
parameters for the Heywood interconnector will reduce the response
“
risk to South Australia if islanding occurs.. Fast frequency response is being demonstrated in Virtual
Delivery: 2020 Power Plants made up of home batteries to allow them to
provide similar grid services to big batteries.
3 Synchronous condensers Delivery: 2020
Significant and prudent investment
”
Synchronous condensers mimic traditional generators and
will deliver a base level of system strength and improve its 6 Improving voltage
in our grid will make power more
stability. New enhanced voltage management technology will
Delivery: 2020-21 address emerging voltage issues and provide emergency
affordable, reliable and clean.
management capabilities, improving appliance and solar
performance whilst allowing more households to take up
solar power.
Delivery: 2020
7 New emergency powers
1 New Emergency Management Act powers and procedures
will give us to the tools to keep a secure power network if
emergencies occur in periods of low demand.
6
Delivery: 2020
7
8 8 Updated protection schemes
Emergency protection schemes such as the Under-Frequency
4 Load Shedding scheme are being updated to ensure they
continue to operate in low demand conditions.
Delivery: 2020
9
9 Demand Response Rule
South Australia proposed and secured national rule changes
to reward large users who can modify their demand to help
meet the needs of the system.
Delivery: 2021
2
5
3
13 South Australia's Energy Solution Government of South Australia June 2020 14
Smarter homes
“ We are determined to make a step-
change to a smart power system –
where smart homes’ solar, batteries,
appliances and eventually electric
”
The South Australian government is
vehicles will work together to deliver
committed to putting consumers at
the heart of our energy system.
cheap and cleaner power.
We believe that households and businesses should have
the greatest possible access to renewable energy and
smart technologies to improve their quality of life and cost,
so that together we can reduce carbon emissions whilst
improving our prosperity and quality of life.
We are determined to make a step-change to a smart
power system – where smart homes’ solar, batteries,
Voluntary
appliances and eventually electric vehicles will work
together to deliver cheap and cleaner power.
automation
And by making the most of the solar power generated
on our homes, more households will be able to take up
rooftop solar and our grid can remain secure.
Our transition to a smart power system will need the right
technology and the economic signals to reward supportive
of demand
behaviour.
We’re making sure that households have the right
response
technology by bringing in new smart standards for solar Through its Demand Management Trials, the
systems and batteries, and key appliances such as hot South Australian government is supporting
water, air-conditioners, pool pumps, and electric vehicles. Amber Electric to showcase how a smart hot
water system, pool pump, or household battery
We’ve got the world’s largest home battery roll-out and
can automatically use cheaper power to reduce
Virtual Power Plants, along with trials of new demand
bills.
management offers which are rewarding customers for
supporting the grid through automating appliances and Customers can then save money by using
backup power supplies. cheaper power at the best time on windy or
sunny days while reducing pressure on the more
New retail obligations mean that households will be able
expensive peak demand periods.
to take advantage of cheaper “solar sponge” prices in
the daytime and have access to discounted upgrades to
improve their efficiency and smart capabilities.
These are being introduced now so that as people buy new
appliances and solar systems we can reward consumers
with lower bills for supporting the grid.
15 South Australia's Energy Solution Government of South Australia June 2020 16
Smarter homes
1 Cheaper daytime power prices 5 Smart appliance standards
New “solar sponge” tariffs mean consumers can choose Smart appliance standards help create smart homes, reducing
cheaper power prices in the middle of the day to make use of pressure on the grid and saving money by automatically using
abundant solar power and reduce peak demand. power when it’s cheapest.
Delivery: 2020 Delivery: 2021
2 Smart solar standards 6 Smart energy retrofits
“
Retailers will be obliged to deliver smart energy saving
Adopting solar requirements mean that solar output can
activities to customers which help them use power when it’s
be managed to support security during emergencies and
cheaper and make the most of the solar power they produce.
operate within the limits of the distribution network, allowing
Delivery: 2021
Smarter homes can work
us to host more rooftop solar on our network.
”
Delivery: 2021
7 Demand Management Trials
automatically in the background to 3 Improved inverter standards
To support the grid, new standards will make sure that solar
Demand Management Trials are testing new technologies
which can reward customers for supporting the grid by
reduce bills and support the grid.
automating their energy usage.
continues to operate during disturbances and does not
Delivery: Ongoing
disconnect in response to voltage issues.
Delivery: 2020 8 Hot water system standards
Improved hot water standards will allow households to help
4 Solar system compliance the grid by using more abundant renewable energy and get
the most from the solar power they produce.
New compliance checks will ensure installations are done
Delivery: 2020
correctly to protect consumers and support the security of the
power system.
Delivery: 2021
9 Virtual Power Plants
New Virtual Power Plants are rewarding households whose
batteries and solar support the grid by helping meet peak
demand and responding to disturbances.
Delivery: Ongoing
8
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1
6
5
3
2
9
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17 South Australia's Energy Solution Government of South Australia June 2020 18Acknowledgement of Country We acknowledge and respect the Traditional Custodians whose ancestral lands we live and work upon and we pay our respects to their Elders past and present. We acknowledge and respect the deep spiritual connection and the relationship that Aboriginal and Torres Strait Islander people have to Country. We also pay our respects to the cultural authority of Aboriginal and Torres Strait Islander people and their nations in South Australia, as well as those across Australia. Further information Department for Energy and Mining T: +61 8 8226 5500 www.energymining.sa.gov.au
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