In light of rapid uptake of renewables, Australia is looking to improve its power grid’s stability to counter generation risks and overburdening of the transmission system. The country’s transmission system and grid lines were initially developed for coal-generated energy. However, nearly two-thirds of coal-fired capacity in the National Electricity Market (NEM), is due to close by 2040. Thus, there is a need for an overhaul to accommodate the penetration of renewables.

According to a report, Australian regulators have flagged plans for new caps to renewable connections to its power grid to reduce risks associated with network congestion with increasing addition of renewable power generation capacity. Connection caps on renewable energy zones with tender processes are expected to introduce new generators in an orderly manner. Improved stability is also expected to bring down uncertainty for investors.

Australia is the world’s top coal and gas exporter. Although gas is seen as a key sector to grow in the Australian economy, many states are moving ahead with their own green energy plans. However, grid problems have been causing delays to the Australian renewable energy development pipeline. Project sponsors, regulators and grid operators are starting to realize the importance of the role energy storage needs to play to allow the smooth penetration of intermittent clean electricity. To sustain the long-term benefits of renewable energy and ensure it forms a major part of the despatchable resources, Australia’s energy policy has called for increased adoption of energy storage systems.