How power from the people carbon-dates the opposition

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We were told that it was impossible, insane even, to attempt. But it’s actually working. In a world of woe, Australia can be quietly pleased with progress on an important reform.

The electricity grid is moving towards renewables at a rate faster than experts predicted. For two quarters in a row now, solar and wind have supplied about half of the nation’s electricity. Coal’s share is shrinking to all-time lows.

The grid has remained stable. The price of wholesale electricity has come down. Carbon emissions have fallen. And the price of a lamb roast is yet to hit $100. Far from it.

Is this because demand for electricity has fallen? On the contrary, demand has reached record highs, thanks to heatwaves.

“Not long ago, that would have sent energy ministers out to ask people to not turn on their dishwashers,” says federal Energy Minister Chris Bowen. “No need. The grid coped fine. This is a turning point.”

What’s going on? Like Hemingway’s famous description of how bankruptcy happens, the electricity transition has proceeded “gradually, then suddenly”.

“The story is that there’s a big shift to a lot more battery storage, and that’s changing the market in interesting ways,” says Grattan Institute energy and climate change program director Alison Reeve. “All the batteries are starting to mop up daytime solar energy and then people are using it at the evening peak. That’s flattening demand peaks. If it continues, it’s a great sign.”

“The lower you make your peak, the smaller the overall grid needs to be,” Reeve says. “And that saves everyone a lot of money.”

Another change: “We used to have gas peakers turning on at 5pm,” she says, referring to the gas-fired power plants that switch on to supply the extra electricity needed at the time of peak demand. “That’s very expensive.” But the surge in new batteries is making gas peakers redundant and that cuts the cost.

In a time of big shocks, Australians want bigger answers

Rebecca HuntleyResearcher and author

Researcher and author

“The story of the last 20 years has been coal leaving the grid. Now we are starting to see gas leaving the grid,” Reeve says.

That doesn’t make gas obsolete. Heavy industry depends on gas, and 5........

© Brisbane Times