The dirty little secret of Australia’s energy transition

Soap boxes aside, there is agreement from industry experts that there is a clear need for additional investment in renewables, but that the biggest sticking point in the transition is actually transmission, particularly the grid.

In NSW, state-owned Transgrid is working to install the necessary pieces of high voltage equipment. Called Syncons, they are described as the spinning wheels needed to stabilize the electrical grid.

A simple system operated using coal power plants becomes quite complex using renewable energy sources. And it requires large capital expenditure.

But given that older power plants are also reaching the end of their useful lives, there is also a huge expense involved in keeping them operating beyond their expiration date.

This partly explains why our electricity bills are rising.

AEMO chief Daniel Westerman isn’t suggesting the sky is falling; rather, its newly released report reminds the industry that major investment in the grid is needed to prevent the risk of statewide blackouts.

There are similar risks in other states, including Victoria and Queensland, but NSW is more closely aligned.

It’s not as if the industry wasn’t warned.

“As it stands today – and AEMO has been signaling the need to invest in these large spinning machines every year since 2021 – the current installation date for these synchronous condensers is after the Eraring retirement date as currently announced,” Westerman said.

Loading

It’s a timing mismatch that suggests Eraring, just outside Newcastle, should remain open for at least a few more years.

System vulnerabilities were blamed for the catastrophic power outage that affected 50 million people in Spain and Portugal in April.

It looks like our electricity will be dirtier for a while.

The Business Briefing newsletter delivers big stories, exclusive news and expert insights. Sign up to receive it every weekday morning.