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Firming Technologies to Reach 100% Renewable Energy Production in Australia’s National Electricity Market (NEM)

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  • Joel Gilmore
  • Tim Nelson
  • Tahlia Nolan

Abstract

Australia has committed to reducing its greenhouse gas emissions in a manner consistent with limiting anthropogenic climate change to no more than 2 degrees Celsius. One of the ways in which this commitment is being realised is through a shift towards variable renewable energy (VRE) within Australia’s National Electricity Market (NEM). Substituting existing dispatchable thermal plant with VRE requires consideration of long-term energy resource adequacy given the unpredictability of solar and wind resources. While pumped hydro and battery storage are key technologies for addressing short-term mismatches between resource availability and demand, they may be unable to cost effectively address ‘energy droughts’. In this article, we present a time sequential solver model of the NEM and an optimal firming technology plant mix to allow the system to be supplied by 100% VRE. Our conclusion is that some form of fuel-based technology (most likely hydrogen) will probably be required. This has important implications for Australian energy policy.

Suggested Citation

  • Joel Gilmore & Tim Nelson & Tahlia Nolan, 2023. "Firming Technologies to Reach 100% Renewable Energy Production in Australia’s National Electricity Market (NEM)," The Energy Journal, , vol. 44(6), pages 189-210, November.
    • Handle: RePEc:sae:enejou:v:44:y:2023:i:6:p:189-210
    DOI: 10.5547/01956574.44.6.jgil
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    References listed on IDEAS

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    1. Tracey Dodd & Tim Nelson, 2019. "Trials and tribulations of market responses to climate change: Insight through the transformation of the Australian electricity market," Australian Journal of Management, Australian School of Business, vol. 44(4), pages 614-631, November.
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    Cited by:

    1. Nolan, Tahlia, 2024. "Is pivoting offshore the right policy for achieving decarbonisation in the state of Victoria, Australia's electricity sector?," Energy Policy, Elsevier, vol. 190(C).
    2. Newbery, David M. & Biggar, Darryl R., 2024. "Marginal curtailment of wind and solar PV: Transmission constraints, pricing and access regimes for efficient investment," Energy Policy, Elsevier, vol. 191(C).
    3. Gorman, Nicholas & MacGill, Iain & Bruce, Anna, 2024. "Re-dispatch simplification analysis: Confirmation holism and assessing the impact of simplifications on energy system model performance," Applied Energy, Elsevier, vol. 365(C).

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