AGL’s Coal Generators Successfully Adapt to Solar in Major Boost for Renewable Energy Transition

AGL Energy, Australia's largest coal generator, has achieved a significant milestone by successfully shutting down coal units during peak solar hours, making room for renewable energy to dominate the grid. This innovative approach was tested at AGL’s Bayswater Power Station in the Hunter Valley, marking a step toward a more flexible and renewable-dominated energy system.

The trial involved a process called “two-shifting,” where coal units are taken offline and then brought back online within a 12-hour period. This allows coal plants to shut down during the day when solar energy is at its peak, reducing the need for coal power and allowing more space for solar and wind energy.

The first successful trial was led by Len McLachlan, AGL’s Head of Operations at Bayswater. "Our team desynchronised 20 seconds ahead of the 10am target and resynchronized within 50 seconds of the 3pm target. This level of precision on our first attempt is extraordinary and sets a new benchmark for our operations," McLachlan shared on LinkedIn.

This breakthrough could significantly reduce the problem of negative wholesale electricity prices, which often occur when coal generators remain online during times of high solar production. Traditionally, coal generators have struggled to turn off without incurring high economic costs and potential damage to their equipment. Instead, they bid negative prices to stay operational, causing other renewable energy sources like wind and solar farms to shut down, leading to what’s known as “economic curtailment.”

With this new flexibility, coal generators can be powered down during the day, allowing for increased wind and solar production and reducing the need for economic curtailment. It also opens up the possibility for more renewable energy projects to be developed.

AGL plans to implement this flexible approach as part of its broader transition toward a grid dominated by renewables. This flexibility could eventually lead to seasonal shutdowns of coal generators, as suggested by EnergyAustralia for its Mt Piper coal plant in New South Wales.

AGL aims to keep Bayswater operational until 2032 or 2033 and its Loy Yang A coal generator in Victoria until 2035. In the meantime, the company is investing in large battery projects and fast-start gas generators to support the transition.

This trial also signals the decline of the “baseload” model, once central to grid operations, in favor of flexible generation that adapts to the variable nature of renewable energy. As McLachlan notes, this is just the beginning, with more trials and learnings to come.

As industries and communities shift towards renewable energy, EServices4u is here to support your transition. Our experts provide services like solar panel installations, energy procurement, and battery storage solutions, ensuring your business is at the forefront of clean energy innovation.

Whether you're a small business or a large corporation, EServices4u offers tailored energy consultancy services to help you reduce costs and carbon emissions. Let’s power the future together—visit www.eservices4u.com.au to learn more about how we can support your clean energy goals.