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  • 16 March 2023
  • Electrical Switchboard Manufacturer | Technical Articles

Why is South Australia’s energy demand dropping every year?

South Australia’s power consumption was an all-time low of -205 MW on 19 October, 2024, at 1:00 PM. A short power shutdown, sunny skies, and moderate temperatures caused this decline. Solar panels supplied 114% of the required electricity at the time, allowing the extra power to be transmitted to Victoria. The minimum demand drops by about 100 MW annually, according to experts who estimate this to happen. The South Australian Government and SA Power Networks have stepped in to regulate this and maintain the energy system secure.

Maintaining the Energy System Stable

In order to maintain smooth operations, the Australian Energy Market Operator (AEMO) provides rules regarding necessary energy consumption at various times. When South Australia is linked to the broader power grid, demand will be between -520 MW and 400 MW, depending on how much is transferred to the other states. If South Australia is at risk of being severed from the core power grid, energy demand will need to stay above 250 MW to avoid drastic action. When the state operates autonomously, demand must be at least 400 MW to avoid power shortages.

In other instances, the energy demand has to be even greater, to 900 MW. But with new battery storage solutions and quicker energy response technology, this demand has been reduced. Emergency steps have already been taken by AEMO when demand falls below too low, keeping the power grid stable.

How South Australia Deals with Surplus Energy

South Australia has come up with numerous solutions for dealing with surplus energy. Solar installations with over 200 kW capacity have, since 2017, had to incorporate specific controls that enable the curtailment of energy generation when required. In 2020, the “Smarter Homes” legislation mandated new solar installations to incorporate remote switch-offs. SA Power Networks also implemented Flexible Export Limits (FELs), which vary the level of energy homes export to the grid based on demand at the time. Another device, Enhanced Voltage Management (EVM), manages electricity voltage levels to restrict solar power generation in the event of an emergency, though this is only utilized by authorities as a last resort.

What Will Happen in the Future?

By 2026, the analysts project that the energy demand of South Australia will still be lower than present safety levels, once again necessitating emergency action. There is another new project, Project EnergyConnect, which will supply additional energy to other states. But if other states too are producing excess energy, then this measure may not be adequate.

The requirement for emergency backstop of energy has been rising. In October 2023, the authorities had to deal with 426 MW of power. In October 2024, it may increase up to 697 MW, and in 2025, up to 857 MW. The past events illustrate the importance of these as last-resort options. In November 2022, a storm cut off South Australia from the national electricity network for a week and required 400-600 MW of shedding of solar energy. In February 2024, a storm brought down power cables again, and authorities were compelled to control solar power to avoid overloading the network.

South Australia in the future will further boost energy storage, optimize solar power systems, and improve laws governing electricity management. All of these will enable the state to maintain a reliable and secure power grid and its devotion to renewable power.

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Tags: Power generationrenewable energy
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