Big Batteries on Standby: New Rules Aim to Prevent Rooftop Solar Shutdowns

The Australian Energy Market Operator (AEMO) is gearing up to introduce new protocols that will instruct big batteries to remain on standby with little or no charge during periods of low demand. This move is designed to prevent the unpopular alternative of turning off rooftop solar systems during times of excess energy production.

As rooftop solar PV continues its explosive growth, now surpassing 21 gigawatts, minimum grid demand has emerged as a key challenge. Mild temperatures in spring, combined with strong solar output, have pushed demand to record lows, particularly in South Australia and Victoria. AEMO has previously resorted to ordering rooftop solar shutdowns to avoid grid instability, but this new plan aims to use big batteries to absorb excess energy instead.

Under the new protocols, large batteries will be instructed to discharge energy in the morning and remain empty during the day, ready to absorb excess solar power if required. This will help maintain grid stability without affecting households that rely on solar. Though some in the energy industry have expressed concerns about potential revenue losses, AEMO is working on compensation mechanisms similar to those used for lack of reserve (LOR) scenarios.

The growing reliance on big batteries highlights the changing dynamics of energy management as renewables take center stage. With Peter Dutton’s nuclear plan facing criticism and nuclear reactors unlikely to be built for decades, energy experts argue that large-scale storage solutions like batteries are the real key to balancing the grid.

Western Australia is already ahead, having signed contracts for massive battery storage projects to absorb solar energy during the day and inject it into the grid at night. Similar contracts may soon be introduced nationwide as part of a broader market redesign to meet the needs of a renewables-dominated grid.

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