Commentary

How a virtual ‘big battery’ could get South Australia’s grid out of hot water

Published by

One Step Off The Grid

South Australia’s 200,0000-odd residential electric hot water systems could be transformed into a massive virtual battery to store the state’s cheap and abundant solar during the day and help solve grid stability problems.

Under a proposal put to the South Australian government by NSW-based firm Intellihub, residential smart meters would be used to dynamically control hot water systems, turning them into a sort-of solar sponge at times of minimum demand – often when solar generation is highest.

This would offer benefits for consumers, including saving them money on energy costs, while also taking pressure off the grid by providing enough combined demand at the right times and locations to help maintain the stability of supply.

Intellihub says the creation of a hot water virtual power plant could also provide a new platform for retailers to develop innovative consumer-friendly products, offering improved services and better control over energy costs.

The proposal comes as both the South Australia government and the Australian Energy Market Operator scramble to find ways to better accommodate the state’s world-leading distributed solar uptake, and avoid the need to take measures such as switch off large amounts of rooftop PV.

That sort of “last resort mechanism” was flagged by AEMO in its Minimum Operational Demand Thresholds in South Australia Review, handed to the state government in May, and released publicly in June.

The report noted that zero operational demand – where rooftop solar reaches the point where it effectively eliminates grid demand – could occur within the next one to three years and, unless AEMO has new powers to manage rooftop solar, presents a real danger of a major blackout.

As RenewEconomy editor Giles Parkinson explained here, AEMO has long planned a “roadmap” to introduce new standards, new technology and protocols to manage this growing resource, but the looming “zero demand” benchmark has forced it and the state government to fast-track their response.

And while AEMO has some near-term tricks and band-aid solutions up its sleeve, the South Australian government is doing its bit to find remedies through a Smarter Homes consultation on minimum demand solutions – the prompt to Intellihub’s proposal.

“Our proposal supports the use of energy rather than the loss of energy to help maintain grid security across South Australia,” said Intellihub CEO Adrian Clark in a statement on Monday.

“With intelligent scheduling and staggering enabled by smart meters, these systems can deliver a continuous aggregate demand of 200-300MW to help maintain grid stability when solar generation is highest.

“It works exactly the same way as a battery, soaking up energy when required, and releasing it when it’s needed. It creates value for consumers and the energy market, rather than eroding value.”

To read the full story on RenewEconomy sister site One Step Off The Grid, click here…

Sophie Vorrath

Sophie is editor of Renew Economy and editor of its sister site, One Step Off The Grid . She is the co-host of the Solar Insiders Podcast. Sophie has been writing about clean energy for more than a decade.

Share
Published by

Recent Posts

State to spend $225 million to help critical REZ connect 1.3 GW new of wind and solar

State announces $225 million budget spend on critical grid upgrades to unlock one of its…

10 June 2026

“We’re afraid to make that transition:” Former US science envoy goes toe-to-toe with big Australian gas players

Former US science envoy calls out Australia's push for gas, but is amazed that renewables…

10 June 2026

Passive home batteries deliver “enormous benefits” to the grid, says AEMO – even if not orchestrated in VPPs

Australia's huge and growing fleet of home batteries are delivering "enormous benefits" to grid, even…

10 June 2026

Malaysia giant buys solar and battery project in coal country, with eye on data centres

Malaysia infrastructure giant buys into one of the biggest solar and battery hybrids in Australia,…

10 June 2026

Big and small batteries “fundamentally changing” the grid, and its planning blueprint, says AEMO boss

Batteries – big, small and in-between – are "fundamentally changing" the electricity system – while also…

10 June 2026

China opens world’s first undersea data centre, powered by offshore wind turbines

The world’s first undersea data centre has begun operating off the coast from Shanghai, powered…

10 June 2026