A new white paper from Monash Business School has highlighted the crucial role of large-scale electricity storage in achieving Australia’s clean energy goals.
The report, titled The storage imperative: Powering Australia’s clean energy transition, highlighted that without adequate storage solutions, Australia’s ambitious clean energy targets may remain out of reach.
Associate Professor Guillaume Roger, the author of the white paper, argues that current electricity trading methods and financial instruments are insufficient to handle intermittent energy and storage needs.
“The problem is that renewable energy must be stored to really be useful; there is too much of it when we don’t need it, and not enough when we do,” he explained.
The study underscores the importance of large-scale electricity storage in meeting Australia’s clean energy targets, which include:
- 43 per cent emissions reduction by 2030
- 82 per cent renewable energy generation by 2030
- Net zero emissions by 2050
According to the report, “electricity storage on a large scale is the perfect, and very timely, complement to sporadically available renewable energy generation”.
The white paper presents several policy recommendations and reforms for policymakers, market operators, and industry stakeholders:
- Implementing Locational Marginal Pricing (LMP) and a day-ahead market
- Reevaluating investment incentive schemes
- Developing new approaches to ensure system reliability
- Funding further research on revenue generation and market design
Associate Professor Roger pointed out that these reforms are cost-effective and can be implemented quickly.
“An important dimension of these reforms is that they do not cost much to taxpayers, unlike much of the subsidies various governments, state and federal offer now, and they can be enacted rapidly. Australians should demand them,” he stated.
The white paper, funded by the Australian Renewable Energy Agency, will be launched on November 14, 2024, featuring a keynote from Anna Collyer, Chair of the AEMC.
As Australia continues its transition to a sustainable energy future, addressing the complexities of electricity storage will be crucial in meeting the nation’s clean energy goals.
