Australia microgrid economics

With Australia's relatively small population being spread across large, remote geographical areas, a lot of pressure is put on the electricity grid to cover long distances. In response to this challenge, as well as an increase in the cost-competitiveness of renewable technologies, the industry is in
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With Australia''s relatively small population being spread across large, remote geographical areas, a lot of pressure is put on the electricity grid to cover long distances. In response to this challenge, as well as an increase in the cost-competitiveness of renewable technologies, the industry is increasingly turning to microgrids as a solution.

So, what is a microgrid? According to Energy Networks Australia, the term microgrid can have many different meanings in regards to size, purpose, load capability, sustainability and infrastructure in relation to the grid.

Although the template for what a microgrid is may be dynamic and varying, they are quickly becoming established as an essential and lucrative component of Australia''s energy network, with the remote microgrid market expected to increase to $20 billion by 2024.

Offering solutions to principal energy industry challenges such as increasing electricity costs, the demands of servicing a large geographical area, and aging infrastructure, microgrids are becoming an increasingly important component of Australia''s energy network.

With some remote communities, such as islands, typically lacking energy and water security, there is often a disproportionate reliance on electricity generated using fossil fuels like diesel, which can be costly and logistically intensive.

For Australia as a whole, and the communities in which they operate, microgrids provide more options for energy reliability and independence, as well as opportunities for distributing and storing renewable energy.

A rapid uptake of renewables, the increasingly high costs of extending a centralised generation network and soaring diesel prices make distributed energy systems like microgrids an appealing option for Australian energy.

The benefits of renewable microgrid solutions in Australia''s energy landscape can be categorised into five main categories: reliability, cost and convenience, renewable energy integration, efficiency, and boosting local economies.

With bushfire, flood and cyclone events becoming more frequent and severe, electricity supply challenges during and after these events are becoming more and more significant.

Electricity dependence during these events also heightens the risk and consequences of physical or cyber attacks, highlighting the need for local energy solutions like microgrids.

Following the immediate threat, the challenges continued throughout the aftermath, as power outages and loss of telecommunications hampered the recovery and clean up effort.

These lessons are also being learned around the world. In the United States, Connecticut and New Jersey have invested millions of dollars into microgrids after Hurricane Sandy devastated much of the mid-Atlantic coastline in 2012; and in the Japanese city of Sendai, an experimental microgrid maintained a supply of power and heating to a university and hospital for two days in 2011 following a 9.0 magnitude earthquake and subsequent tsunami.

About Australia microgrid economics

About Australia microgrid economics

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