Did you notice the headlines when Australia’s energy regulators gave notice of new protocols that would allow rooftop solar systems to be switched off – maybe once a year in an emergency to ensure that the lights stay on?
Imagine, then, the potential response to news that rooftop solar system might have to be switched off, or curtailed, on an almost daily basis – just to accommodate the 14 gigawatts of nuclear power that the Coalition says it intends to jam into the Australian grid should it be returned to government.
That is the reality from Peter Dutton’s focus on large centralised, baseload power systems, which, to be successful, must put a stop of the switch towards distributed and flexible consumer energy resources, much of it owned and operated by households and small businesses.
The Dutton nuclear plan has already shocked many with its cavalier disregard for climate science, grid engineering, energy reliability, and the costs to the country and consumers.
It says it is unable to say if or when its power plan might deliver a reduction in energy prices, but the biggest shock of all might be what it means for households, and the consumer energy resources (CER) that they might want to own – rooftop PV, home batteries and electric vehicles.
Basically, it assumes that the growth of CER and the electrification of home heating, cooling and other gas use is stopped.
The dominance of the grid is retained, initially by the big utilities who have so comprehensively screwed consumers in recent years, and then by big government, who will have to be the owners of the nuclear plants because no private investor will risk its money on the technology.
Some in the industry are describing this as an effective declaration of war against household solar and consumer resources on behalf of the fossil fuel industry and nuclear ideologues – a triumph of big government over the rights and opportunities of individual households and businesses.
Federal energy minister Chris Bowen has seized on this, and held a press conference over the weekend with the head of the Smart Energy Council to underline the fact that rooftop solar systems may have to be heavily curtailed – switched off, in effect, on a daily basis to accommodate Dutton’s nuclear plans.
This is supported by the likes of Tesla, which in a late submission to the federal nuclear inquiry sent on Friday says that rooftop PV will have to “severely curtailed” to accomodate nuclear power. Tesla says there is no room on the main grid for more than 2 gigawatts of “baseload power”.
But, first, a recap on what the Coalition has said it will do to accommodate its proposed fleet of 14 gigawatts of nuclear power capacity.
It has made clear it will scrap Australia’s near term Paris climate target, and delay any meaningful emission cuts until the 2040s because it wants to keep burning coal and gas, rather than installing wind, solar and storage.
It has vowed to cancel at least half of the proposed offshore wind zones, and rip up contracts signed by the government.
The Coalition’s own modelling suggests that the roll out of large scale wind and solar will be slowed to a crawl, but it offers no explanation as to how energy reliability will be maintained when it seeks to force two thirds of the country’s ageing and increasingly decrepit coal fired power station to stay on line until the 2040s.
We now know it will cost NSW up to $450 million to keep half of the 42-year-old Eraring coal generator on line for an extra two years – so how much will it cost to extend the life of an entire fleet of similarly aged generators, some even older, for another decade? The Coalition doesn’t say.
The Coalition claims nuclear will cost $264 billion less than Labor’s renewable focused plan. But its own modelling makes clear this is not the case, and that number comes from comparing two completely different scenarios.
And on a like for like basis, the difference is much smaller, just $64 billion, and that number is rubbery at best is only because it models 13.2 GW of new nuclear built at a cost of just $140 billion, even though it is costing the UK, with a nuclear arsenal and long established civilian nuclear industry, $92 billion to build a single 3.2 GW nuclear plant.
The Coalition has refused to say how, or even if, consumer prices will fall given the greater dependence on expensive and polluting fossil fuel generation over the next two decades, followed by the construction of the most expensive source of generation, nuclear.
But its own modelling depicts a dystopian future that should concern all households. It assumes significantly less electricity production, suggests a much smaller economy and a slow take up of electrification and electric vehicles.
This is critically important. Almost every energy expert in the country predicts that more than half of all electricity production by the 2040s will come from consumers themselves – through rooftop solar, smart appliances and supported by household batteries and EVs that will provide crucial support for the grid.
In the Coalition’s plan, this does not exist.
And the reason for that is quire simple: If the Coalition’s fleet of nuclear power plants are to deliver the modelled 38 per cent of all power generation, they will need to be operating at very high capacity factors, meaning they will seek to be “always on”.
That means generating at or near 13 GW at all times. Even in the middle of the day, when rooftop solar has been eating into demand to such an extent that minimum “operating” demand levels – the demand that must be met by large scale energy sources – has already fallen to 10 GW.
Another 50 GW of rooftop solar is predicted by the time that the Coalition’s nuclear power plants are built.
Federal energy and climate minister Chris Bowen says this would result in rooftop solar being curtailed about 67 per cent of the time – or several hours a day, every day, on average, and a lot not being installed.
“What we would see is solar, Australia’s booming solar industry stopped in its tracks,” Bowen said.
“Analysis shows that more than 60% of the rooftop solar operating during the day would have to be switched off in that circumstance, couldn’t feed into the grid.
“More than 60% on a regular basis, would just not be able to operate and feed into the grid at any particular time.
“Now that undermines the fundamental economics of the rooftop solar industry, which is developed in Australia in no small part due to the Renewable Energy Target the previous Labor government put in place, which the Liberal Party opposed, which Tony Abbott tried to abolish, and which they still don’t believe in.”
SEC chief executive John Grimes agreed, noting that there are 4 million households and small business owners saving money with rooftop solar.
“This is a solar stopper policy. Peter Dutton wants to take that away from Australians, and worse than that, he wants to take away the pathway for the 4 million more who want to get solar on their rooftop.
“What we should be doing is backing in the government scheme to make solar cheaper for all Australians. We should be putting solar on every rooftop, because that is the pathway to cost of living reductions.”
Others agree. Tesla, the Australian market leader in electric vehicles and household batteries, says rooftop solar will have to be “severely curtailed” if nuclear is jammed into the grid. It says there is barely room for 1 GW of baseload in big grids such as NSW and Queensland, and no room at all in South Australia and Western Australia.
“Any large-scale build out of this type of inflexible baseload supply will therefore be impacted by minimum generation levels, resulting in either low-capacity factors for the nuclear plants and/or unit decommitment (bidding out of the market), or severe curtailment of cheaper rooftop solar and renewables,” Tesla writes.
Dutton’s obsession with baseload, and his failure to understand the flexibility and advantages of consumer resources and new technologies, was revealed on Friday when he sought to demonise rooftop solar by claiming it could not charge an EV and a household battery at the same time.
Of course, that is complete nonsense. But it continues a disturbing theme among the Coalition front bench, who have taken turns to mock EVs, big batteries, and in Duttons’s case even make fun of the fact that climate change is threatening the very existence of low-lying Pacific nations.
Clean Energy Council chief Kane Thornton says Dutton’s plan will be a massive shock and concern to investors who have invested $40 billion into large-sale renewable energy in Australia since 2020.
“A nuclear-powered energy grid would also be a disaster for the four million Australian homes that have already installed a rooftop solar system as a way to lower their power bills,” Thornton said in a statement.
“These systems would have to be switched off regularly if Australia was to move to inflexible nuclear power.
“This would be absurd, forcing the cheapest form of generation on people’s homes to turn off so that the most expensive could continue to operate around the clock.”
See also:
Tesla says Dutton’s nuclear plan will result in “severe” curtailment of household rooftop solar
“You can’t charge your battery and your car at same time:” Dutton does not have a clue about energy
Energy Insiders Podcast: Dutton’s high stakes, low sense nuclear plan
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