Australia’s National Electricity Market (NEM) reached record-breaking levels of renewable energy during the third quarter of 2024, as outlined in the Australian Energy Market Operator’s (AEMO) latest Quarterly Energy Dynamics report.
The report highlights significant strides in renewable energy capacity, production, and integration across the country’s largest electricity grid.
Renewable capacity additions surged, with 45.6 gigawatts (GW) in the pipeline by the end of September, marking a 36 per cent increase from the same period last year.
Battery projects led the charge with 14.6 GW in development – a striking 87 per cent growth over the third quarter of 2023.
On September 9, the NEM saw a new peak, with renewables supplying 72.2 per cent of the grid’s total electricity generation. During this interval, rooftop solar contributed 38.5 per cent of the electricity, grid-scale solar 18.3 per cent, and wind power 13.4 per cent.
AEMO Executive General Manager Reform Delivery, Violette Mouchaileh, said it is promising to see Australia’s energy transition continue with more renewable generation capacity either coming online or progressing.
According to AEMO, a further 2.6 GW of new generation has reached application approval this quarter, with 3.5 GW registered and connected to the NEM and 1.3 GW progressing through commissioning to reach full output.
“AEMO is preparing the grid to run on 100 per cent renewable generation at any one point in time, and this quarter saw total renewable generation available at over 100 per cent of demand on two occasions,” Mouchaileh said.
The period, however, was not without challenges. Cold snaps in early July drove demand up across the NEM by 3.4 per cent, resulting in record winter peak demand for Queensland and Victoria.
Meanwhile, milder weather in August and September reduced demand, setting minimum operational demand records in Queensland, New South Wales, and Victoria.
Wholesale spot prices averaged $119 per megawatt-hour (MWh) during Q3, with South Australia recording the highest average at $158/MWh.
Although spot prices dropped compared to the previous quarter, they remained elevated year-over-year due to factors like reduced hydro generation and network outages. Gas demand also climbed by 3 per cent as gas-fired generation increased and Queensland’s liquefied natural gas (LNG) exports set a new Q3 record.
Western Australia’s Wholesale Electricity Market (WEM) also saw gains in renewable output, with rooftop solar and wind contributing to a record 35.2 per cent renewable generation for the quarter, surpassing the previous record of 29.6 per cent set in Q3 2022.
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