Blackouts Avoided, but Energy Management Needs an Overhaul

Despite alarming headlines predicting blackouts, Australia’s energy grid managed to stay operational during a tight supply situation this week. However, the experience has highlighted critical flaws in how the country manages its energy transition and demand.

Australia’s reliance on aging coal and gas plants continues to make the grid vulnerable. These plants frequently falter under extreme conditions like heatwaves and high humidity. While renewable projects and battery storage are on the horizon, their progress is hindered by outdated planning, bureaucratic obstacles, and grid regulations.

AEMO relied on only 75 MW of demand response during the crisis—just a fraction of the 13,000 MW peak demand. In comparison, other regions harness up to 15% of peak demand through flexible energy management.

Experts like Gabrielle Kuiper emphasize that Australia has lagged in developing flexible demand mechanisms and integrating consumer participation in the market. Programs like virtual power plants (VPPs) show promise but remain underutilized.

Batteries played a crucial role in stabilizing the grid, with units like the Waratah Super Battery standing by to supply energy. As more battery projects come online, including major installations like Eraring and Myrtle Creek, they will become vital tools for grid stability.

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