In the modern world, electricity will be the backbone of the entire energy system.
According to an IEA report, the global electricity demand is rising faster than ever before, fuelled by robust economic growth and increasing uptake of technologies such as electric vehicles (EVs), heat pumps, air-conditioners, electric stovetops etc that rely on electricity.
The total energy spend will increase by 75 percent by 2050, mainly on electricity.
Electricity is fundamental to the progress of society and transitioning to a sustainable energy future means decarbonising and replacing energy generated by fossil fuels with electricity generated by renewables.
The power sector produces around 40 percent of global greenhouse gas emissions.
Another 23 percent each are generated by industry and transportation. Decarbonising these three sectors is the key to achieving the goal of a carbon-neutral world by mid-century.
With growing solar and wind generation to race ahead, the share of renewables in total power generation will rise from 29 percent in 2020 to nearly 90 percent in 2050.
In transportation, electricity and hydrogen will account for over 70 percent of transport energy demand by 2050.
Australia’s journey toward Net Zero
According to the IEA report, Australia aims to double its emissions reductions by 2030 and achieve Net Zero emissions by 2050.
This is a significant shift as the country has historically relied heavily on fossil fuels and has been a major producer and exporter of coal, oil, and gas.
However, with increasing energy demands from industries like mining and minerals, there is a rising demand for renewable energy, mainly due to its increasing price competitiveness.
Australia has abundant sun, wind, and land availability for onshore and offshore projects.
Over 8.5 gigawatts (GW) of hydroelectric power assets are in operation across the country today, and batteries are being installed along the Eastern coast to provide flexibility to the grid.
According to Veeman Buell, head of strategy and product management at Hitachi Energy, Australia is increasingly witnessing coal plants being decommissioned, giving way to integrating new renewable energy plants.
“As Australia undergoes this energy transition, it faces unique grid transformation challenges as it integrates intermittent renewables while ensuring grid stability and energy security,” Buell said.
“The energy transition is creating a dynamic ecosystem due to the intermittency of natural resources and the reduction of inertia caused by the decommissioning of large turbines.”
Grid stability and the pivotal role of power electronics
“Like all developed economies, Australia, too, is set to see a ballooning of grid investment to meet new demand, replace ageing infrastructure, and integrate more renewables,” Buell said.
Increasingly dynamic consumption profiles caused by the adoption of EVs and AI-driven data centres present further complexities for grid operators.
Grids must support intermittency not just in terms of dynamic demand but also in terms of sources of generation.
The increasing penetration of renewables, the decentralisation of power generation, and the electrification and decarbonisation of traditional fossil-based industries create challenging operating environments for power systems.
Due to more variable power flows, lower inertia, and predictability, the need for increasingly controlled interconnection capacity and clean energy corridors directly feeding cities is required to support remote sustainable generation. Inertia is crucial to ensure overall grid stability.
“As the transition to a more decarbonised and electrified future accelerates, it is becoming clear that new solutions and technologies will be needed to ensure the resilience, efficiency, and stability of tomorrow’s electrical grids,” Buell said.
To address the issues and the needs of a rapidly evolving power system, Hitachi Energy recently launched Grid-enSure – a portfolio of fully integrated solutions that helps to enhance grid flexibility, resilience, and stability to accelerate the sustainable energy transition.
Given the dynamic nature of grid operations, power electronics is a key lever underpinning the energy transition across the entire grid.
“As a grid systems integrator and power electronics solutions expert, Hitachi Energy is committed to helping companies in the energy, industrial, and infrastructure sectors overcome their energy infrastructure challenges,” Veeman Buell said.
“There is no one-size-fits-all solution since different challenges require different solutions. However, the right mix of technologies that offer resilience while allowing for hybrid approaches is key to strengthening grids for future demands.”
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