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Last month the International Energy Agency (IEA) released its “Integrating Solar and Wind” report in which it classified South Australia (SA) as being in Phase 5 (of 6) in the integration of variable renewable energy into its grid. This puts SA in an elite class of two, as it joins Denmark in the Phase 5 category. ABSI this week will outline the IEA’s rating system and what SA is doing to integrate variable solar and wind energy into its grid. 

The transition away from base-load fossil fuel energy sources to variable renewable energy technologies isn’t a like-for-like switch. The downside of technologies such as wind and solar is their intermittent nature which adds complexity in order to produce a grid that is stable yet flexible. According to the IEA, the integration of variable renewable energy can be categorised into six distinct phases. Phases 1 to 3 are considered early-stage with low levels of renewable integration and easily addressable challenges in variability addressed by legacy fossil fuel assets. Phases 4 to 6 are considered the more advanced phases that require significant work in transforming the power system.

Source: IEA

According to the report, only one country has achieved Phase 5 status and that is Denmark which achieved the feat in 2022. Further afield are Ireland, Spain, Netherlands, Germany and the United Kingdom in Phase 4 and Australia is considered Phase 3, which is unsurprising given that coal still dominates the grid. However, South Australia has broken through in 2023 to be classified as Phase 5 for the first time which is a huge achievement for the State and sets an example for the rest of the country to follow.

Source: IEA

It is important to appreciate the primary challenge of Phase 5 is efficiently handling extended periods of both low and high shares of renewables that can last days to months. Currently, Denmark is managing these challenges through interconnections with neighbouring power systems, whilst further developing various duration storage solutions and complimentary solar to the wind-dominated Danish energy system. However, SA is taking a different approach in order to address its unique challenges. In contrast to Denmark, SA has limited interconnections with the wider National Energy Market and renewable generation is largely focussed on solar PV compared to Denmark’s offshore wind. In response to extreme periods of high solar generation, energy is exported into the NEM but is also directed to a growing number of battery energy storage systems (BESS) to be used later during peak periods in the mornings and evenings. If you recall, SA was home to the world’s first “big battery” fitted with Tesla Powerpack batteries that Musk famously offered for free if the company didn’t meet the construction deadline.

Source: IEA

Moving from Phase 5 to 6 will be no easy task for SA but steps are being taken to slowly move to that goal. The biggest project currently in development to assist is Project EnergyConnect which is a new 900km interconnector which will run from Wagga Wagga in NSW to Robertstown in SA, with a connection to Red Cliffs in VIC. Stage 1 of the ~A$2.3b project is expected to be completed in Dec 2024 while Stage 2, is not until July 2027. The new line will better enable flexibility in the network by increasing the amount of energy that can be shared between states, providing better balance and energy security. Other solutions to help with the variability of renewable energy generation include BESS, thermal energy storage, and green hydrogen production. 

Renewable energy technologies are the cheapest forms of electricity generation and will form the majority of energy production in many countries. However, the growing complexity and interactions between generation, grid, and demand-side assets is a difficult but solvable challenge that energy grid operators will need to deal with. Unfortunately, it won’t be a one-size fits all approach but it is encouraging to see places like Denmark and South Australia lead the way with different approaches to inspire others.

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