Kansai Electric to restart 5 thermal power units next summer

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Kansai Electric Power Co. has decided to reactivate five idled thermal power generation units in western Japan by summer next year in the event that all of its 11 nuclear reactors cease operations around February, sources close to the matter said Tuesday.

The process of reactivation, aimed at averting a power supply shortage when electricity demand peaks in summer, could be time-consuming, however, because the five power units have become rundown as they have been out of service for quite a long time, the sources added.

Slated to be restarted are the Nos. 1 and 2 units in Miyazu, Kyoto Prefecture, Nos. 1 and 2 units in Misaki, Osaka Prefecture, and No. 2 unit in, Kainan, Wakayama Prefecture. They were closed between fiscal 2001 and 2005. Their combined output is 2.4 million kilowatts.

The Osaka-based utility earlier said that it will take two to three years to restart the facilities but it is now trying to speed up the procedure.

The company's nuclear power plants are due to undergo safety checkups and if it becomes impossible to reactivate them, its overall output will fall to 25.33 million kilowatts next summer, according to government estimates.

A serious power shortage might occur next summer given that power demand in areas serviced by Kansai Electric reached a high of 26.87 million kilowatts Monday.

Besides regular checkups to be performed by utilities, the government decided in July to have all nuclear power plants in Japan undergo "stress tests" to confirm their safety as public anxiety deepened in the wake of the nuclear disaster at the Fukushima Daiichi plant.

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Diesel Prices Return to Pre-Ukrainian Conflict Levels

France Diesel Prices at Pre-Ukraine Levels reflect energy market stabilization as supply chains adapt and subsidies help; easing fuel costs, inflation, and logistics burdens for households, transport firms, and the wider economy.

 

Key Points

They mark normalization as oil supply stabilizes, easing fuel costs and logistics expenses for consumers and firms.

✅ Lower transport and logistics operating costs

✅ Softer inflation and improved household budgets

✅ Market stabilization amid adjusted oil supply chains

 

In a significant development for French consumers and businesses alike, diesel prices in France have recently fallen back to levels last seen before the Ukrainian conflict began, mirroring European gas prices returning to pre-war levels across the region. This drop comes as a relief to many who have been grappling with volatile energy costs and their impact on the cost of living and business operations. The return to lower diesel prices is a noteworthy shift in the energy landscape, with implications for the French economy, transportation sector, and broader European market.

Context of Rising Diesel Prices

The onset of the Ukrainian conflict in early 2022 triggered a dramatic increase in global energy prices, including diesel. The conflict's disruption of supply chains, coupled with sanctions on Russian oil and gas exports, contributed to a steep rise in fuel prices across Europe, prompting the EU to weigh emergency electricity price measures to shield consumers. For France, this meant that diesel prices soared to unprecedented levels, putting significant pressure on consumers and businesses that rely heavily on diesel for transportation and logistics.

The impact was felt across various sectors. Transportation companies faced higher operational costs, which were often passed down to consumers in the form of increased prices for goods and services. Additionally, higher fuel costs contributed to broader inflationary pressures, with EU inflation hitting lower-income households hardest, affecting household budgets and overall economic stability.

Recent Price Trends and Market Adjustments

The recent decline in diesel prices in France is a welcome reversal from the peak levels experienced during the height of the conflict. Several factors have contributed to this price reduction. Firstly, there has been a stabilization of global oil markets as geopolitical tensions have somewhat eased and supply chains have adjusted to new realities. The gradual return of Russian oil to global markets, albeit under complex sanctions and trading arrangements, has also played a role in moderating prices.

Moreover, France's strategic reserves and diversified energy sources have helped cushion the impact of global price fluctuations. The French government has also implemented measures to stabilize energy prices, including subsidies and tax adjustments, and a new electricity pricing scheme to satisfy EU concerns, which have helped alleviate some of the financial pressure on consumers.

Implications for the French Economy

The return to pre-conflict diesel price levels brings several positive implications for the French economy. For consumers, the decrease in fuel prices means lower transportation costs, which can ease inflationary pressures and improve disposable income, and, alongside the EDF electricity price deal, reduce overall utility burdens for households. This is particularly beneficial for households with long commutes or those relying on diesel-powered vehicles.

For businesses, especially those in the transportation and logistics sectors, the drop in diesel prices translates into reduced operational costs. This can help lower the cost of goods and services, potentially leading to lower prices for consumers and improved profitability for businesses. In a broader sense, stabilized fuel prices can contribute to overall economic stability and growth, as lower energy costs can support consumer spending and business investment.

Environmental and Policy Considerations

While the decrease in diesel prices is advantageous in the short term, it also raises questions about long-term energy policy and environmental impact, with the recent crisis framed as a wake-up call for Europe to accelerate the shift away from fossil fuels. Diesel, as a fossil fuel, continues to pose environmental challenges, including greenhouse gas emissions and air pollution. The drop in prices might inadvertently discourage investments in cleaner energy alternatives, such as electric and hybrid vehicles, which are crucial for achieving long-term sustainability goals.

In response, there is a growing call for continued investment in renewable energy and energy efficiency measures. France has been actively pursuing policies to reduce its reliance on fossil fuels and increase the adoption of cleaner technologies, amid ongoing EU electricity reform debates with Germany. The government’s support for green energy initiatives and incentives for low-emission vehicles will be essential in balancing short-term benefits with long-term environmental objectives.

Conclusion

The recent return of French diesel prices to pre-Ukrainian conflict levels marks a significant shift in the energy market, offering relief to both consumers and businesses. While this decline brings immediate financial benefits and supports economic stability, it also underscores the ongoing need for a strategic approach to energy policy and environmental sustainability. As France navigates the evolving energy landscape, the focus will need to remain on fostering a transition towards cleaner energy sources while managing the economic and environmental impacts of fuel price fluctuations.

 

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New York and New England Need More Clean Energy. Is Hydropower From Canada the Best Way to Get it?

Canadian Hydropower Transmission delivers HVDC clean energy via New England Clean Energy Connect and Champlain Hudson Power Express, linking HydroQuébec to Maine and New York grids for renewable energy, decarbonization, and lower wholesale electricity rates.

 

Key Points

HVDC delivery of HydroQuébec power to New England and New York via NECEC and CHPE, cutting emissions and costs.

✅ 1,200 MW via NECEC; 1,000 MW via CHPE.

✅ HVDC routes: 145-mile NECEC and 333-mile CHPE.

✅ Debates: land impacts, climate justice, wholesale rates.

 

As the sole residents of unorganized territory T5 R7 deep within Maine's North Woods, Duane Hanson and his wife, Sally Kwan, have watched the land around them—known for its natural beauty, diverse wildlife and recreational fishing—transformed by decades of development. 

But what troubles them most is what could happen in the next few months. State and corporate officials are pushing for construction of a 53-mile-long power line corridor cutting right through the woods and abutting the wild lands surrounding Hanson's property. 

If its proponents succeed, Hanson fears the corridor may represent the beginning of the end of his ability to live "off the land" away from the noise of technology-obsessed modern society. Soon, that noise may be in his backyard. 

"I moved here to be in the pristine wilderness," said Hanson.
 
With his life in what he considers the last "wild" place left on the East Coast on the line, the stakes have never felt higher to Hanson—and many across New England, as well.

The corridor is part of the New England Clean Energy Connect, one of two major and highly controversial transmission line projects meant to deliver Canadian hydropower from the government-owned utility HydroQuébec, in a province that has closed the door on nuclear power, to New England electricity consumers. 

As New England states rush to green their electric grids and combat the accelerating climate crisis, the simultaneous push from Canada to expand the market for hydroelectric power from its vast water resources, including Manitoba's clean energy, has offered these states a critical lifeline at just the right moment. 

The other big hydropower transmission line project will deliver 1,000 megawatts of power, or enough to serve approximately one million residential customers, to the New York City metropolitan area, which includes the city, Long Island, and parts of the Hudson Valley, New Jersey, Connecticut and Pennsylvania. 

The 333-mile-long Champlain Hudson Power Express project will consist of two high voltage direct current cables running underground and underwater from Canada, beneath Lake Champlain and the Hudson River, to Astoria, Queens. 

There, the Champlain Hudson project will interconnect to a sector of the New York electricity grid where city and corporate officials say the hydropower supplied can help reduce the fossil fuels that currently comprise significantly more of the base load than in other parts of the state. Though New York has yet to finalize a contract with HydroQuébec over its hydropower purchase, developers plan to start construction on the $2.2 billion project in 2021 and say it will be operational in 2025. 

The New England project consists of 145 miles of new HVDC transmission line that will run largely above ground from the Canadian border, through Maine to Massachusetts. The $1 billion project, funded by Massachusetts electricity consumers, is expected to deliver 1,200 megawatts of clean energy to the New England energy grid, becoming the region's largest clean energy source. 

Central Maine Power, which will construct the Maine transmission corridor, says the project will decrease wholesale electric rates and create thousands of jobs. Company officials expect to receive all necessary permits and begin construction by the year's end, with the project completed and in service by 2020. 

With only months until developers start making both projects on-the-ground realities, they have seized public attention within, and beyond, their regions. 

Hanson is one among many concerned New England and New York residents who've joined the ranks of environmental activists in a contentious battle with public and corporate officials over the place of Canadian hydropower in their states' clean energy futures. 

Officials and transmission line proponents say importing Canadian hydropower offers an immediate and feasible way to help decarbonize electricity portfolios in New York and New England and to address existing transmission constraints that limit cross-border flows today, supporting their broader efforts to combat climate change. 

But some environmental activists say hydropower has a significant carbon footprint of its own. They fear the projects will make states look "greener" at the expense of the local environment, Indigenous communities, and ultimately, the climate. 

"We're talking about the most environmentally and economically just pathway" to decarbonization, said Annel Hernandez, associate director of the NYC Environmental Justice Alliance. "Canadian hydro is not going to provide that." 

To that end, environmental groups opposing Canadian hydropower say New York and New England should seize the moment to expedite local development of wind and solar power. 

Paul Gallay, president of the nonprofit environmental organization Riverkeeper—which withdrew its initial support for the Champlain Hudson Power Express last November— believes New York has the capacity to develop enough in-state renewable energy sources to meet its clean energy goals, without the new transmission line. 

Yet New York City's analysis shows clearly that Canadian hydropower is critical for its clean energy strategy, said Dan Zarrilli, director of OneNYC and New York City's chief climate policy adviser. 

"We need every bit of clean energy we can get our hands on," he said, to meet the city's goal of carbon neutrality by 2050 and help achieve the state's clean energy mandates. 

Removing Canadian hydropower from the equation, said Zarilli, would commit the city to the "unacceptable outcome" of burning more gas. The city's marginalized communities would likely suffer most from the resulting air pollution and associated health impacts. 

While the two camps debate Canadian hydropower's carbon footprint and what climate justice requires, this much is clear: When it comes to pursuing a zero-carbon future, there are no easy answers. 

Hydropower's Carbon Footprint
Many people take for granted that because hydropower production doesn't involve burning fossil fuels, it's a carbon-neutral endeavor. But that's not always the case, depending on where hydropower is sourced. 

Large-scale hydropower projects often involve the creation of hydroelectric dams and reservoirs, and, in some cases, repowering existing dams to generate clean electricity. The release and flow of water from the reservoir through the dam provides the energy necessary to generate hydropower, which long-distance power lines, or transmission lines, carry to its intended destination—in this case, New England and New York. 

The initial process of flooding land to create a hydroelectric reservoir can have a sizable carbon footprint, especially in heavily vegetated areas. It causes the vegetation and soil underwater to decompose, releasing carbon dioxide and methane—a greenhouse gas 84 times more potent over a 20-year period than carbon dioxide. 

Hydropower accounts for 60 percent of Canada's electricity generation, and HydroQuébec has planned to increase capacity to 37,000 MW in 2021, with the nation second only to China in the percentage of the world's total hydroelectricity it generates. By contrast, hydropower only accounts for seven percent of U.S. utility-scale electricity generation, making it a foreign concept to many Americans. 

As New England works to introduce substantial amounts of Canadian hydropower to its electricity grid, hydropower proponents are promoting it as a prime source for clean electricity, and new NB Power agreements are expanding regional transfers within Canada as well. 

Last fall, Central Maine Power formed its own political action committee, Clean Energy Matters, to advance the New England hydropower project. Together with HydroQuébec, the Maine utility has spent nearly $17 million campaigning for the project this year. 

 

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How ‘Virtual Power Plants’ Will Change The Future Of Electricity

Virtual Power Plants orchestrate distributed energy resources like rooftop solar, home batteries, and EVs to deliver grid services, demand response, peak shaving, and resilience, lowering costs while enhancing reliability across wholesale markets and local networks.

 

Key Points

Virtual Power Plants aggregate solar and batteries to provide grid services, cut peak costs, and boost reliability.

✅ Aggregates DERs via cloud to bid into wholesale markets

✅ Reduces peak demand, defers costly grid upgrades

✅ Enhances resilience vs outages, cyber risks, and wildfires

 

If “virtual” meetings can allow companies to gather without anyone being in the office, then remotely distributed solar panels and batteries can harness energy and act as “virtual power plants.” It is simply the orchestration of millions of dispersed assets within a smarter electricity infrastructure to manage the supply of electricity — power that can be redirected back to the grid and distributed to homes and businesses. 

The ultimate goal is to revamp the energy landscape, making it cleaner and more reliable. By using onsite generation such as rooftop solar and smart solar inverters in combination with battery storage, those services can reduce the network’s overall cost by deferring expensive infrastructure upgrades and by reducing the need to purchase cost-prohibitive peak power. 

“We expect virtual power plants, including aggregated home solar and batteries, to become more common and more impactful for energy consumers throughout the country in the coming years,” says Michael Sachdev, chief product officer for Sunrun Inc., a rooftop solar company, in an interview. “The growth of home solar and batteries will be most apparent in places where households have an immediate need for backup power, as they do in California, where grid reliability pressures have led utilities to turn off the electricity to reduce wildfire risk.”

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Home battery adoption, such as Tesla Powerwall systems, is becoming commonplace in Hawaii and in New England, he adds, because those distributed assets are improving the efficiency of the electrical network. It is a trend that is reshaping the country’s energy generation and delivery system by relying more on clean onsite generation and less on fossil fuels.

Sunrun has recently formed a business partnership with AutoGrid, which will manage Sunrun’s fleet of rechargeable batteries. It is a cloud-based system that allows Sunrun to work with utilities to dispatch its “storage fleet” to optimize the economic results. AutoGrid compiles the data and makes AI-driven forecasts that enable it to pinpoint potential trouble spots. 

But a distributed energy system, or a virtual power plant, would have 200,000 subsystems. Or, 200,000 5 kilowatt batteries would be the equivalent of one power plant that has a capacity of 1,000 megawatts. 

“A virtual power plant acts as a generator,” says Amit Narayan, chief executive officer of AutoGrid, in an interview. “It is one of the top five innovations of the decade. If you look at Sunrun, 60% of every solar system it sells in the Bay Area is getting attached to a battery. The value proposition comes when you can aggregate these batteries and market them as a generation unit. The pool of individual assets may improve over time. But when you add these up, it is better than a large-scale plant. It is like going from mainframe computers to laptops.”

The AutoGrid executive goes on to say that centralized systems are less reliable than distributed resources. While one battery could falter, 200,000 of them that operate from remote locations will prove to be more durable — able to withstand cyber attacks and wildfires. Sunrun’s Sachdev adds that the ability to store energy in batteries, as seen in California’s expanding grid-scale battery use supporting reliability, and to move it to the grid on demand creates value not just for homes and businesses but also for the network as a whole.

The good news is that the trend worldwide is to make it easier for smaller distributed assets, including energy storage for microgrids that support local resilience, to get the same regulatory treatment as power plants. System operators have been obligated to call up those power supplies that are the most cost-effective and that can be easily dispatched. But now regulators are giving virtual power plants comprised of solar and batteries the same treatment. 

In the United States, for example, the Federal Energy Regulatory Commission issued an order in 2018 that allows storage resources to participate in wholesale markets — where electricity is bought directly from generators before selling that power to homes and businesses. Under the ruling, virtual power plants are paid the same as traditional power suppliers. A federal appeals court this month upheld the commission’s order, saying that it had the right to ensure “technological advances in energy storage are fully realized in the marketplace.” 

“In the past, we have used back-up generators,” notes AutoGrid’s Narayan. “As we move toward more automation, we are opening up the market to small assets such as battery storage and electric vehicles. As we deploy more of these assets, there will be increasing opportunities for virtual power plants.” 

Virtual power plants have the potential to change the energy horizon by harnessing locally-produced solar power and redistributing that to where it is most needed — all facilitated by cloud-based software that has a full panoramic view. At the same time, those smaller distributed assets can add more reliability and give consumers greater peace-of-mind — a dynamic that does, indeed, beef-up America’s generation and delivery network.

 

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Schneider Electric Aids in Notre Dame Restoration

Schneider Electric Notre Dame Restoration delivers energy management, automation, and modern electrical infrastructure, boosting safety, sustainability, smart monitoring, efficient lighting, and power distribution to protect heritage while reducing consumption and future-proofing the cathedral.

 

Key Points

Schneider Electric upgrades Notre Dame's electrical systems to enhance safety, sustainability, automation, and efficiency.

✅ Energy management modernizes power distribution and lighting.

✅ Advanced safety and monitoring reduce fire risk.

✅ Sustainable automation lowers consumption while preserving heritage.

 

Schneider Electric, a global leader in energy management and automation, exemplified by an AI and technology partnership in Paris, has played a significant role in the restoration of the Notre Dame Cathedral in Paris following the devastating fire of April 2019. The company has contributed by providing its expertise in electrical systems, ensuring the cathedral’s systems are not only restored but also modernized with energy-efficient solutions. Schneider Electric’s technology has been crucial in rebuilding the cathedral's electrical infrastructure, focusing on safety, sustainability, and preserving the iconic monument for future generations.

The fire, which caused widespread damage to the cathedral’s roof and spire, raised concerns about both the physical restoration and the integrity of the building’s systems, including rising ransomware threats to power grids that affect critical infrastructure. As Notre Dame is one of the most visited and revered landmarks in the world, the restoration process required advanced technical solutions to meet the cathedral’s complex needs while maintaining its historical authenticity.

Schneider Electric's contribution to the project has been multifaceted. The company’s solutions helped restore the electrical systems in a way that reduces the energy consumption of the building, improving sustainability without compromising the historical essence of the structure. Schneider Electric worked closely with architects, engineers, and restoration experts to implement innovative energy management technologies, such as advanced power distribution, lighting systems, and monitoring solutions like synchrophasor technology for enhanced grid visibility.

In addition to energy-efficient solutions, Schneider Electric’s efforts in safety and automation have been vital. The company provided expertise in reinforcing the electrical safety systems, leveraging digital transformer stations to improve reliability, which is especially important in a building as old as Notre Dame. The fire highlighted the importance of modern safety systems, and Schneider Electric’s technology ensures that the restored cathedral will be better protected in the future, with advanced monitoring systems capable of detecting any anomalies or potential hazards.

Schneider Electric’s involvement also aligns with its broader commitment to sustainability and energy efficiency, echoing calls to invest in a smarter electricity infrastructure across regions. By modernizing Notre Dame’s electrical infrastructure, the company is helping the cathedral move toward a more sustainable future. Their work represents the fusion of cutting-edge technology and historic preservation, ensuring that the building remains an iconic symbol of French culture while adapting to the modern world.

The restoration of Notre Dame is a massive undertaking, with thousands of workers and experts from various fields involved in its revival. Schneider Electric’s contribution highlights the importance of collaboration between heritage conservationists and modern technology companies, and reflects developments in HVDC technology in Europe that are shaping modern grids. The integration of such advanced energy management solutions allows the cathedral to function efficiently while maintaining the integrity of its architectural design and historical significance.

As the restoration progresses, Schneider Electric’s efforts will continue to support the cathedral’s recovery, with the ultimate goal of reopening Notre Dame to the public, reflecting best practices in planning for growing electricity needs in major cities. Their role in this project not only contributes to the physical restoration of the building but also ensures that it remains a symbol of resilience, cultural heritage, and the importance of combining tradition with innovation.

Schneider Electric’s involvement in the restoration of Notre Dame Cathedral is a testament to how modern technology can be seamlessly integrated into historic preservation efforts. The company’s work in enhancing the cathedral’s electrical systems has been crucial in restoring and future-proofing the monument, ensuring that it will continue to be a beacon of French heritage for generations to come.

 

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DP Energy Sells 325MW Solar Park to Medicine Hat

Saamis Solar Park advances Medicine Hat's renewable energy strategy, as DP Energy secures AUC approval for North America's largest urban solar, repurposing contaminated land; capacity phased from 325 MW toward an initial 75 MW.

 

Key Points

A 325 MW solar project in Medicine Hat, Alberta, repurposing contaminated land; phased to 75 MW under city ownership.

✅ City acquisition scales capacity to 75 MW in phased build

✅ AUC approval enables construction and grid integration

✅ Reuses phosphogypsum-impacted land near fertilizer plant

 

DP Energy, an Irish renewable energy developer, has finalized the sale of the Saamis Solar Park—a 325 megawatt (MW) solar project—to the City of Medicine Hat in Alberta, Canada. This transaction marks the development of North America's largest urban solar initiative, while mirroring other Canadian clean-energy deals such as Canadian Solar project sales that signal market depth.

Project Development and Approval

DP Energy secured development rights for the Saamis Solar Park in 2017 and obtained a development permit in 2021. In 2024, the Alberta Utilities Commission (AUC) granted approval for construction and operation, reflecting Alberta's solar growth trends in recent years, paving the way for the project's advancement.

Strategic Acquisition by Medicine Hat

The City of Medicine Hat's acquisition of the Saamis Solar Park aligns with its commitment to enhancing renewable energy infrastructure. Initially, the project was slated for a 325 MW capacity, which would significantly bolster the city's energy supply. However, the city has proposed scaling the project to a 75 MW capacity, focusing on a phased development approach, and doing so amid challenges with solar expansion in Alberta that influence siting and timing. This adjustment aims to align the project's scale with the city's current energy needs and strategic objectives.

Utilization of Contaminated Land

An innovative aspect of the Saamis Solar Park is its location on a 1,600-acre site previously affected by industrial activity. The land, near Medicine Hat's fertilizer plant, was previously compromised by phosphogypsum—a byproduct of fertilizer production. DP Energy's decision to develop the solar park on this site exemplifies a productive reuse of contaminated land, transforming it into a source of clean energy.

Benefits to Medicine Hat

The development of the Saamis Solar Park is poised to deliver multiple benefits to Medicine Hat:

  • Energy Supply Enhancement: The project will augment the city's energy grid, much like municipal solar projects that provide local power, providing a substantial portion of its electricity needs.

  • Economic Advantages: The city anticipates financial savings by reducing carbon tax liabilities, as lower-cost solar contracts have shown competitiveness, through the generation of renewable energy.

  • Environmental Impact: By investing in renewable energy, Medicine Hat aims to reduce its carbon footprint and contribute to global sustainability efforts.

DP Energy's Ongoing Commitment

Despite the sale, DP Energy maintains a strong presence in Canada, where Indigenous-led generation is expanding, with a diverse portfolio of renewable energy projects, including solar, onshore wind, storage, and offshore wind initiatives. The company continues to focus on sustainable development practices, striving to minimize environmental impact while maximizing energy production efficiency.

The transfer of the Saamis Solar Park to the City of Medicine Hat represents a significant milestone in renewable energy development. It showcases effective land reutilization, strategic urban planning, and a shared commitment to sustainable energy solutions, aligning with federal green electricity procurement that reinforces market demand. This project not only enhances the city's energy infrastructure but also sets a precedent for integrating large-scale renewable energy projects within urban environments.

 

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South Australia rides renewables boom to become electricity exporter

Australia electricity grid transition is accelerating as renewables, wind, solar, and storage drive decentralised generation, emissions cuts, and NEM trade shifts, with South Australia becoming a net exporter post-Hazelwood closure and rooftop solar surging.

 

Key Points

Australia electricity shift to renewables, distributed generation and storage, cutting emissions, reshaping NEM flows.

✅ South Australia now exports power post-Hazelwood closure

✅ Rooftop solar is the fastest-growing NEM generation source

✅ Gas peaking and storage investments balance variable renewables

 

The politics may not change much, but Australia’s electricity grid is changing before our very eyes – slowly and inevitably becoming more renewable, more decentralised, and in step with Australia's energy transition that is challenging the pre-conceptions of many in the industry.

The latest national emissions audit from The Australia Institute, which includes an update on key electricity trends in the national electricity market, notes some interesting developments over the last three months.

The most surprising of those developments may be the South Australia achievement, which shows that since the closure of the Hazelwood brown coal generator in Victoria in March 2017, and as renewables outpacing brown coal in other markets, South Australia has become a net exporter of electricity, in net annualised terms.

Hugh Saddler, lead author of the study, notes that this is a big change for South Australia, which in 1999 and 2000, when it had only gas and local coal, used to import 30% of its electricity demand.

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The fact that wholesale prices in South Australia were higher in other states – then, as they are now – has nothing to with wind and solar, but the fact that it has no low-cost conventional source and a peaky demand profile (then and now).

“The difference today is that the state is now taking advantage of its abundant resources of wind and solar radiation, and the new technologies which have made them the lowest cost sources of new generation, to supply much of its electricity requirements,” Saddler writes.

Other things to note about the flows between states is that Victoria was about equal on imports and exports with its three neighbouring states, despite the closure of Hazelwood. NSW continues to import around 10% of its needs from cheaper providers in Queensland.

Gas-fired generation had increased in the last year or two in South Australia as a result of the Northern closure, but is still below the levels of a decade ago.

But because it is expensive, this is likely to spur more investment in storage.

As for rooftop solar, Saddler notes that the share of residential solar in the grid is still relatively small but, despite excess solar risks flagged by distributors, it is the most steadily growing generation source in the NEM.

That line is expected to grow steadily. By 2040, or perhaps 2050, the share of distributed generation, which includes rooftop solar, battery storage and demand management, is expected to reach nearly half of all Australia’s grid demand.

Saddler, says, however, that the increase in large-scale solar over the last few months is a significant milestone in Australia’s transition towards clean electricity generation, mirroring trends in India's on-grid solar development seen in recent years. (See very top graph).

“Firstly, they are a concrete demonstration that the construction cost advantage, which wind enjoyed over solar until a year or two ago, is gone.

“From now on we can expect new capacity to be a mix of both technologies. Indeed, the Clean Energy Regulator states that it expects solar to account for half of all (new renewable) capacity by 2020, and the US is moving toward 30% from wind and solar as well.”

 

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