GE to manufacture hybrid water heaters

By Business Wire


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GE's (GE) Consumer & Industrial division announced that it will manufacture highly energy efficient hybrid electric water heaters in Louisville, Kentucky, at the company's Appliance Park facility - creating about 400 jobs.

The new hybrid patented technology will make GE the first manufacturer to introduce a water heater that will meet the new 2009 Department of Energy ENERGY STAR standards for heat pump hot water heaters, putting GE well ahead of the competition.

The decision to locate production of this leadership product in Louisville came as a result of cooperative efforts, investments and incentives involving GE, the IUE-CWA, the Commonwealth of Kentucky and Louisville Metro government. GE's planned manufacturing facility also has a potential to create 1,600 incremental "green" jobs over time for suppliers and contract partners and generate other positive financial impacts in Louisville and nationwide.

"We made the decision to build these products in Louisville because of the strong support from our state and local governments and the cooperative spirit of our Union leadership and our employees at Appliance Park. This clearly indicates GE's vote of confidence in this facility and our employees as a place where we can invest in our future, continuing our 50+ year history," said GE Consumer & Industrial President and CEO James Campbell. "Leadership from Governor Steve Beshear, Mayor Jerry Abramson, IUE-CWA President Jerry Carney and many others will help rebuild America's manufacturing base, create jobs and enable innovative, energy-efficient American-made products to be competitive in the marketplace."

Up to $17 million in incentives from the state and metro government will be made available for the design and construction of the new energy-efficient hybrid electric water heater and for several other investments that the Company will make at Appliance Park over the next several years, which will total over $69 million. The state incentives, which were approved by the Kentucky Economic Development Finance Authority on May 28, 2009, will be provided under the Kentucky Industrial Development Act (KIDA). Kentucky also will provide funds to train employees for the new jobs and will exempt from sales tax certain materials purchased to construct new facilities. And in Louisville, the Metro Council has approved an ordinance proposed by Mayor Jerry Abramson that will provide the city's portion of the incentive package.

"We understood that GE had other U.S. locations where the company could make the new hybrid water heater," said Kentucky Governor Steve Beshear. "But the company - like others around the country - knew that Kentucky has made energy-related development one of our highest priorities. The nation's energy needs are growing, yet it wants that energy to be clean and green. In Kentucky we see that as an economic opportunity."

Producing the hybrid electric water heater in Louisville, starting in the second half of 2011, was also made possible by a May 27 vote by GE's local IUE-CWA union membership that demonstrated a spirit of cooperation and lowered labor costs to the level GE needed to competitively produce its new innovative water heater. The union and employees approved a wage freeze until the current labor contract ends in 2011 and the implementation of new wage rates for new hires, making the facility more competitive and attractive than other manufacturing locations that were under consideration.

"The union leadership realized we were at the brink of a major, life-altering decision for our employees and the business." said Local IUE-CWA President Jerry Carney. "Decisions like these are not easy to make but as you look around the country, you can see that employees who make the right choices to compete in this global economy, win. I am proud of the IUE Local 761's membership. GE and the IUE at Appliance Park are a winning team."

"GE has been a vital part of Louisville's economy for decades," added Louisville Mayor Jerry Abramson. "We appreciate the changes that have been made at Appliance Park not only to keep jobs here, but also to add jobs. We will continue to work with the GE leadership team to help ensure the long-term future of Appliance Park."

The new hybrid electric water heater has already received tremendous interest from utility companies, and agencies that administer federal and state weatherization programs, which will become new customers for the innovative products. Conventional water heaters are the second largest energy user in the home and all home appliances make up about 85% of the home's energy consumption.

Utilities report that by providing their customers with super-efficient water heaters the utilities can better manage energy deployment and potential future power generation requirements. Some of GE's new utility customers include: Arkansas Electric Cooperatives Corporation Little Rock AR, PPL Electric Utilities Allentown PA, Gordon Williams Corporation Ontario Canada, NeighborWorks America, Community Housing Partners Corporation Christianburg VA, New Directions Housing Corporation Louisville KY, and Frontier Housing Morehead KY.

The new industry-exclusive GE Hybrid Electric Water Heater is designed to provide hot water in the quantities homeowners demand but uses only about half the energy of conventional water heaters to produce it. Based on the standard 50-gallon tank water heater that uses approximately 4800 kWh per year, the new GE Hybrid Electric Water Heater is designed to:

• Use less than half of that energy - or about 2300 kWh per year - a savings of approximately 2500 kWh per year.

• Save approximately $250 per year - that's $2,500 savings in energy costs over a 10-year period based on 10 cents per kWh.

According to the DOE (http://www.energystar.gov/), if just 10% of the nation's 4.8 million electric water heater shipments were heat pump water heaters with an Energy Factor of 2.0 instead of conventional models with an Energy Factor at the Federal standard, the aggregate energy savings would amount to nearly 1.3 billion kWh per year.

The GE Hybrid Electric Water Heater combines energy-saving heat-pump technology with traditional electric heating systems used in most conventional water heaters on the market today, without sacrificing the amount of hot water it can deliver.

This hybrid technology is designed to absorb heat in ambient air and transfer it into the water. Since this requires much less energy than the energy used to generate radiant heat - as used in a conventional electric water heater - the GE Hybrid Electric Water Heater is more economical to operate.

Federal and state tax credits for purchasing the energy efficient water heater may also be available to benefit consumers.

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Understanding the Risks of EV Fires in Helene Flooding

EV Flood Fire Risks highlight climate change impacts, lithium-ion battery hazards, water damage, post-submersion inspection, first responder precautions, manufacturer safeguards, and insurance considerations for extreme weather, flood-prone areas, and hurricane aftermaths.

 

Key Points

Water-exposed EV lithium-ion batteries may ignite later, requiring inspection, isolation, and trained responders.

✅ Avoid driving through floodwaters; park on high ground.

✅ After submersion, isolate vehicle; seek qualified inspection.

✅ Inform first responders and insurers about EV water damage.

 

As climate change intensifies the frequency and severity of extreme weather events, concerns about electric vehicle (EV) safety in flood-prone areas have come to the forefront. Recent warnings from officials regarding the risks of electric vehicles catching fire due to flooding from Hurricane Idalia underscore the need for heightened awareness and preparedness among consumers and emergency responders, as well as attention to grid reliability during disasters.

The alarming incidents of EVs igniting after being submerged in floodwaters have raised critical questions about the safety of these vehicles during severe weather conditions. While electric vehicles are often touted for their environmental benefits and lower emissions, it is crucial to understand the potential risks associated with their battery systems when exposed to water, even as many drivers weigh whether to buy an electric car for daily use.

The Risks of Submerging Electric Vehicles

Electric vehicles primarily rely on lithium-ion batteries, which can be sensitive to water exposure. When these batteries are submerged, they risk short-circuiting, which may lead to fires. Unlike traditional gasoline vehicles, where fuel may leak out, the sealed nature of an EV’s battery can create hazardous situations when compromised. Experts warn that even after water exposure, the risk of fire can persist, sometimes occurring days or weeks later.

Officials emphasize the importance of vigilance in flood-prone areas, including planning for contingencies like mobile charging and energy storage that support recovery. If an electric vehicle has been submerged, it is crucial to have it inspected by a qualified technician before attempting to drive it again. Ignoring this can lead to catastrophic consequences not only for the vehicle owner but also for surrounding individuals and properties.

Official Warnings and Recommendations

In light of these dangers, safety officials have issued guidelines for electric vehicle owners in flood-prone areas. Key recommendations include:

  1. Avoid Driving in Flooded Areas: The most straightforward advice is to refrain from driving through flooded streets, which can not only damage the vehicle but also pose risks to personal safety.

  2. Inspection After Flooding: If an EV has been submerged, owners should seek immediate professional inspection. Technicians can evaluate the battery and electrical systems for damage and determine if the vehicle is safe to operate.

  3. Inform Emergency Responders: In flood situations, informing emergency personnel about the presence of electric vehicles can help them mitigate risks during rescue operations, including firefighter health risks that may arise. First responders are trained to handle conventional vehicles but may need additional precautions when dealing with EVs.

Industry Response and Innovations

In response to rising concerns, electric vehicle manufacturers are working to enhance the safety features of their vehicles. This includes developing waterproof battery enclosures and improving drainage systems to prevent water intrusion, as well as exploring vehicle-to-home power for resilience during outages. Some manufacturers are also investing in research to improve battery chemistry, making them more resilient in extreme conditions.

The automotive industry recognizes that consumer education is equally important, particularly around utility impacts from mass-market EVs that affect planning. Manufacturers and safety organizations are encouraged to disseminate information about proper EV maintenance, the importance of inspections after flooding, and safety protocols for both owners and first responders.

The Role of Insurance Companies

As the risks associated with electric vehicle flooding become more apparent, insurance companies are also reassessing their policies. With increasing incidences of extreme weather, insurers are likely to adapt coverage options related to water damage and fire risks specific to electric vehicles. Policyholders should consult with their insurance providers to ensure they understand their coverage in the event of flooding.

Preparing for the Future

With the increasing adoption of electric vehicles, it is vital to prepare for the challenges posed by climate change and evolving state power grids capacity. Community awareness campaigns can play a significant role in educating residents about the risks and safety measures associated with electric vehicles during flooding events. By fostering a well-informed public, the likelihood of accidents and emergencies can be reduced.

 

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Germany should stop lecturing France on nuclear power, says Eon boss

EU Nuclear Power Dispute strains electricity market reform as Germany resists state aid for French reactors, while Eon urges cooperation to meet the energy transition, low-carbon goals, renewables integration, and cross-border power trade.

 

Key Points

A policy standoff between Germany and France over nuclear energy's role, state aid, and electricity market reforms.

✅ Germany opposes state aid for existing French nuclear plants.

✅ Eon CEO urges compromise to advance market reform and decarbonization.

✅ Cross-border trade shows reliance on French nuclear amid renewables push.

 

Germany should stop trying to impose its views on nuclear power on the rest of the EU, the head of one of Europe’s largest utilities has warned, as he stressed its importance in the region’s clean energy transition.

Leonhard Birnbaum, chief executive of German energy provider Eon, said Berlin should accept differences of opinion as he signalled his desire for a compromise with France to break a deadlock amid a nuclear power dispute over energy reforms.

Germany this year shut down its final three nuclear power plants as it followed through on a long-held promise to drop the use of the energy source, effectively turning its back on nuclear for now, while France has made it a priority to modernise its nuclear power plants.

The differences are delaying reforms to the region’s electricity market and legislation designed to meet greenhouse gas emissions targets.

One sticking point is Germany’s refusal to back French moves to allow governments to provide state aid to existing power plants, which could enable Paris to support the French nuclear fleet.

The Eon chief, whose company has 48mn customers across Europe, said it would be “better for everyone” if the two countries could approach the dispute with the mindset that “everyone does their part”, even as Germany has at times weighed a U-turn on the nuclear phaseout in recent debates.

“Neither the French will be able to persuade us to use nuclear power, nor we will be able to persuade them not to. That’s why I think we should take a different approach to the discussion,” he added.

Birnbaum said Germany “would do well to be a bit cautious about trying to impose our way on everyone else”. This approach was unlikely to be “crowned with success”.

“The better solution will not come from opposing each other, but from working together.”

Birnbaum made the comments at a press conference announcing Eon’s second-quarter results.

The company raised its profit outlook, predicting adjusted net income of €2.7bn to €2.9bn, and promised to reduce bills for customers as it hailed “diminishing headwinds” following the energy crisis caused by the war in Ukraine.

Birnbaum, whose company owned one of the three German nuclear plants shut down this year, pointed out that French nuclear energy was helping the conversion to a system of renewable energy in Germany at a time when Europe is losing nuclear power just when it needs energy.

This was a reference to Europe’s shared power market that allows countries to buy and sell electricity from one another. 

Germany has been a net importer of French electricity since shutting down its own nuclear plants, which last month prompted the French energy minister Agnès Pannier-Runacher to accuse Berlin of hypocrisy. 

“It’s a contradiction to massively import French nuclear energy while rejecting every piece of EU legislation that recognises the value of nuclear as a low-carbon energy source,” Pannier-Runacher told the German business daily Handelsblatt.

She also criticised Berlin’s drive to use new gas-fired power plants as a “bridge” to its target of being carbon neutral by 2045, even as some German officials contend that nuclear won’t solve the gas issue in the near term, arguing that it created a “credibility problem” for Germany: “Gas is a fossil fuel.”

Berlin officials responded by pointing out that Germany was a net exporter of electricity to France over the winter when its nuclear power stations were struggling to produce because of maintenance problems. 

They added that the country only imported French power because it was cheaper, not because their country was suffering shortages.

Berlin argues that renewable energy is cleaner and safer than nuclear, despite renewable rollout challenges linked to cheap Russian gas and grid expansion, and accuses France of seeking to protect the interests of its nuclear industry.

In Paris, officials see Germany’s resistance to nuclear energy as wrong-headed given the need to fight climate change effectively, and worry it is an attempt to undercut a key aspect of French industrial competitiveness.
 

 

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UK net zero policies: What do changes mean?

UK Net Zero Policy Delay shifts EV sales ban to 2035, eases boiler phase-outs, keeps ZEV mandate, backs North Sea oil and gas, accelerates onshore wind and grid upgrades while targeting 2050 emissions goals.

 

Key Points

Delay moves EV and heating targets to 2035, tweaks mandates, and shifts energy policy, keeping the 2050 net zero goal.

✅ EV sales ban shifts to 2035; ZEV mandate trajectory unchanged

✅ Heat pump grants rise to £7,500; boiler phase-out eased

✅ North Sea oil, onshore wind, grid and nuclear plans advance

 

British Prime Minister Rishi Sunak has said he would delay targets for changing cars and domestic heating to maintain the consent of the British people in the switch to net zero as part of the global energy transition under way.

Sunak said Britain was still committed to achieving net zero emissions by 2050, similar to Canada's race to net zero goals, and denied watering down its climate targets.

Here are some of the current emissions targets for Britain's top polluting sectors and how the announcement impacts them.


TRANSPORTATION
Transport accounts for more than a third (34%) of Britain's total carbon dioxide (CO2) emissions, the most of any sector.

Sunak announced a delay to introducing a ban on new petrol and diesel cars and vans. It will now come into force in 2035 rather than in 2030.

There were more than 1.1 million electric cars in use on UK roads as of April - up by more than half from the previous year to account for roughly one in every 32 cars, according to the country's auto industry trade body.

The current 2030 target was introduced in November 2020 as a central part of then-Prime Minister Boris Johnson's plans for a "green revolution". As recently as Monday, transport minister Mark Harper restated government support for the policy.

Britain’s independent climate advisers, the Climate Change Committee, estimated a 2030 phase out of petrol, diesel and hybrid vehicles could save up to 110 million tons of carbon dioxide equivalent emissions compared with a 2035 phase out.

ohnson's policy already allowed for the continued sale of hybrid cars and vans that can drive long stretches without emitting carbon until 2035.

The transition is governed by a zero-emission vehicle (ZEV) mandate, a shift echoed by New Zealand's electricity transition debates, which means manufacturers must ensure an increasing proportion of the vehicles they sell in the UK are electric.

The current proposal is for 22% of a car manufacturer's sales to be electric in 2024, rising incrementally each year to 100% in 2035.

The government said on Wednesday that all sales of new cars from 2035 would still be zero emission.

Sunak said that proposals that would govern how many passengers people should have in a car, or proposals for new taxes to discourage flying, would be scrapped.


RESIDENTIAL
Residential emissions, the bulk of which come from heating, make up around 17% of the country's CO2 emissions.

The government has a target to reduce Britain's energy consumption from buildings and industry by 15% by 2030, and had set a target to phase out installing new and replacement gas boilers from 2035, as the UK moves towards heat pumps, amid an IEA report on Canada's power needs noting more electricity will be required.

Sunak said people would have more time to transition, and the government said that off-gas-grid homes could continue to install oil and liquefied petroleum gas boilers until 2035, rather than being phased out from 2026.

However, his announcements that the government would not force anyone to rip out an existing boiler and that people would only have to make the switch when replacing one from 2035 restated existing policy.

He also said there would be an exemption so some households would never have to switch, but the government would increase an upgrade scheme that gives people cash to replace their boilers by 50% to 7,500 pounds ($9,296.25).

Currently almost 80% of British homes are heated by gas boilers. In 2022, 72,000 heat pumps were installed. The government had set a target of 600,000 heat pump installations per year by 2028.

A study for Scottish Power and WWF UK in June found that 6 million homes would need to be better insulated by 2030 to meet the government's target to reduce household energy consumption, but current policies are only expected to deliver 1.1 million.

The study, conducted by Frontier Economics, added that 1.5 million new homes would still need heat pumps installed by 2030.

Sunak said that the government would subsidise people who wanted to make their homes energy efficient but never force a household to do it.

The government also said it was scrapping policies that would force landlords to upgrade the energy efficiency of their properties.


ENERGY
The energy sector itself is a big emitter of greenhouse gases, contributing around a quarter of Britain's emissions, though the UK carbon tax on coal has driven substantial cuts in coal-fired electricity in recent years.

In July, Britain committed to granting hundreds of licences for North Sea oil and gas extraction as part of efforts to become more energy independent.

Sunak said he would not ban new oil and gas in the North Sea, and that future carbon budgets for governments would have to be considered alongside the plans to meet them.

He said the government would shortly bring forward new plans for energy infrastructure to improve Britain's grid, including the UK energy plan, while speeding up planning.

Offshore wind power developers warned earlier this month that Britain's climate goals could be at risk, even as efforts like cleaning up Canada's electricity highlight the importance of power-sector decarbonization, after a subsidy auction for new renewable energy projects did not attract any investment in those planned off British coasts.

Britain is aiming to develop 50 gigawatts (GW) of offshore wind capacity by 2030, up from around 14 GW now.

Sunak highlighted that Britain is lifting a ban on onshore wind, investing in carbon capture and building new nuclear power stations.

 

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Electricity exports to New York from Quebec will happen as early as 2025: Hydro-Quebec

Hertel-New York Interconnection delivers Hydro-Quebec renewable energy via a cross-border transmission line to New York City by 2025, supplying 1,250 MW through underground and underwater routes under a 25-year contract.

 

Key Points

A cross-border line delivering 1,250 MW of Hydro-Quebec hydropower to New York City via underground routes.

✅ 1,250 MW clean power to NYC by 2025

✅ 56.1 km underground, 1.6 km underwater in Quebec

✅ 25-year contract; Mohawk partnership revenue

 

Hydro-Quebec announced Thursday it has chosen the route for the Hertel-New York interconnection line, which will begin construction in the spring of 2023 in Quebec.

The project will deliver 1,250 megawatts of Quebec hydroelectricity to New York City starting in 2025, even as a recent electricity shortage report warns about rising demand at home.

It's a 25-year contract for Hydro-Quebec, the largest export contract for the province-owned company, and comes as hydrogen production investments gain traction in Eastern Canada.

The Crown corporation has not disclosed potential revenues from the project, but Premier François Legault mentioned on social media last September that a deal in principle worth more than $20 billion over 25 years was in the works.

The route includes a 56.1-kilometre underground and a 1.6-kilometre underwater section, similar to the Lake Erie Connector project planned under Lake Erie.

Eight municipalities in the Montérégie region will be affected: La Prairie, Saint-Philippe, Saint-Jacques-le-Mineur, Saint-Édouard, Saint-Patrice-de-Sherrington, Saint-Cyprien-de-Napierville, Saint-Bernard-de-Lacolle and Lacolle.

Across the country, new renewables such as wind projects in Yukon are receiving federal support, reflecting broader grid decarbonization.

The last part of the route will run along Fairbanks Creek to the Richelieu River, where it will connect with the American network.

Further south, there will be a 545-kilometre link between the Canada-U.S. border and New York City, while a separate Maine transmission approval advances a New England pathway for Quebec power.

Hydro-Quebec is holding two consultations on the project, on Dec. 8 in Lacolle and Dec. 9 in Saint-Jacques-le-Mineur.

Elsewhere in Atlantic Canada, EV-to-grid integration pilots are underway to test how vehicles can support the power system.

Once the route is in service, the Quebec line will be subject to a partnership between Hydro-Quebec and the Mohawk Council of Kahnawake, which will benefit from economic remunerations for 40 years.

To enhance reliability, grid-scale battery storage projects are also expanding in Ontario.

 

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EV Fires Raise Health Concerns for Firefighters

EV Firefighter Cancer Risks: lithium-ion battery fires, toxic metals like nickel and chromium, hazardous smoke plumes, and prolonged exposure threaten first responders; SCBA use, decontamination, and evidence-based protocols help reduce occupational health impacts.

 

Key Points

Health hazards from EV battery fires exposing responders to toxic metals and smoke, elevating long-term cancer risk.

✅ Nickel and chromium in EV smoke linked to lung and sinus cancers

✅ Use SCBA, on-scene decon, and post-incident cleaning to cut exposure

✅ Adopt EV fire SOPs: cooling, monitoring, isolation, air monitoring

 

As electric vehicles (EVs) become more popular, the EV fire risks to firefighters are becoming an increasing concern. These fires, fueled by the high-capacity lithium-ion batteries in EVs, produce dangerous chemical exposures that could have serious long-term health implications for first responders.

Claudine Buzzo, a firefighter and cancer survivor, knows firsthand the dangers that come with the profession. She’s faced personal health battles, including rare pancreatic cancer and breast cancer, both of which she attributes to the hazards of firefighting. Now, as EV adoption increases and some research links adoption to fewer asthma-related ER visits in local communities, Buzzo and her colleagues are concerned about how EV fires might add to their already heavy exposure to harmful chemicals.

The fire risks associated with EVs are different from those of traditional gasoline-powered vehicles. Dr. Alberto Caban-Martinez, who is leading a study at the Sylvester Comprehensive Cancer Center, explains that the high concentrations of metals released in the smoke from an EV fire are linked to various cancers. For instance, nickel, a key component in EV batteries, is associated with lung, nasal, and laryngeal cancers, while chromium, another metal found in some EV batteries, is linked to lung and sinus cancers.

Research from the Firefighter Cancer Initiative indicates that the plume of smoke from an EV fire contains significantly higher concentrations of these metals than fires from traditional vehicles. This raises the risk of long-term health problems for firefighters who respond to such incidents.

While the Electric Vehicle Association acknowledges the risks associated with various types of vehicle fires, they maintain that the lithium-ion batteries in EVs may not present a significantly higher risk than other common fire hazards, even as broader assessments suggest EVs are not a silver bullet for climate goals. Nonetheless, the growing body of research is causing concern among health experts, urging for further studies into how these new types of fires could affect firefighter health and how upstream electricity generation, where 18% of electricity in 2019 came from fossil fuels in Canada, factors into overall risk perceptions.

Fire departments and health researchers are working to understand the full scope of these risks and are emphasizing the importance of protective gear, such as self-contained breathing apparatuses, to minimize exposure during EV fire responses, while also considering questions like grid impacts during charging operations and EV sustainability improvements in different regions.

 

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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.

#google#

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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