Integrating Non-Storable Renewable Energy into the Australian Electricity Industry

Abstract

This paper presents a framework for analyzing and designing decision-making in the context of an electricity industry or, more broadly, a stationary energy sector. It uses that framework to analyze the approach taken in Australia for preparing for high levels of renewable energy penetration, demonstrating the importance of adopting a systematic approach to this problem and illustrating the outcomes that can be achieved if that is done. The Australian approach has achieved notable successes to date. However, it is a work in progress that is hampered by contested policy-making and the partial privatization of the Australian electricity industry. The paper suggests ways in which further progress could be achieved. These include refinements to wind (and solar) forecasting, enhanced end-user engagement and improvements to gas industry arrangements and electricity-gas compatibility.