Pressure Mounts on NSW for Solar Switch-Off Mechanism Amid Grid Stability Concerns

New South Wales (NSW) faces growing calls to implement a rooftop solar switch-off mechanism, aligning with other states to prevent grid instability caused by excess solar power.

A recent report by the Australian Energy Market Operator (AEMO) highlights the urgency of managing energy from over 4 million solar-powered homes. While rooftop solar reduces demand on grid-scale generators, it can challenge system stability during low-demand periods.

The switch-off mechanism, a last-resort measure, would allow grid operators to temporarily curtail or disconnect rooftop solar during emergencies. Other states like South Australia, Victoria, and Queensland have already adopted such mechanisms, with NSW under pressure to follow suit by 2025.

NSW, where rooftop solar recently met 61% of demand, is warned that emergency conditions could necessitate solar curtailment by October 2024. AEMO emphasizes this is rare, with solar systems only curtailed three times in South Australia since 2020.

To minimize disruptions, AEMO advocates for:

• Energy storage solutions, including community batteries, home batteries, and EV batteries.

• Market reforms encouraging consumer participation in demand-response programs.

• The rollout of major storage projects like the 850 MW Waratah Super Battery and others under construction.

AEMO's CER Roadmap outlines a vision to optimize customer energy resources (CER) while ensuring system security. This includes enabling more market participation and scaling renewable energy adoption without compromising reliability.

NSW’s renewable energy transition will require collective efforts from governments, operators, and consumers. As AEMO’s Michael Gatt noted, maintaining grid stability ensures Australia continues to benefit from its growing renewable energy base without sacrificing reliability.

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