5 October 2021
As part of our transition to affordable, reliable, cleaner and secure energy, the Territory Labor Government has today released the Darwin-Katherine Electricity System Plan.
The System Plan provides a comprehensive and credible pathway to generate 50% renewable energy by 2030 in the Darwin-Katherine Electricity System - cutting emissions in half.
In addition to providing cleaner, secure and reliable energy, the System Plan demonstrates that meeting the 50% renewable energy target by 2030 will result in decreased electricity system costs, leading to an annual cost saving of $30 million per annum by 2030.
Over the past decade, there has been a consistent increase in the adoption and integration of renewable technologies across the Territory.
The Darwin-Katherine Electricity System provides energy to 150,000 Territorians, and one in six customers have roof top solar panels. Customers are using more of their own solar generation to power their homes and businesses during the day rather than using traditional generation.
Customers are also exporting their solar into the grid; meaning less need for centralised generation from the power system during the day, creating changes in demand.
As the Territory energy system continues to evolve and more renewable energy is integrated, it is critical that there is a comprehensive strategy to manage this change and maximise the opportunities for Territorians.
Using expert industry and economic analysis, the plan is based on:
Achieving Government targets (50% renewables and a $40 billion economy by 2030);Minimising costs to Territorians;Reducing emissions and contributing to our net-zero emissions target by 2050;Utilising emerging technologies;Recognition that the renewables sector is rapidly evolving; and Current and continuing NT electricity market reforms.
The System Plan also focuses on six key areas to achieve the 50% Renewable Energy Target which include investing in:
Solar;Thermal Generation;Battery Storage to capture surplus solar energy that can be used at night;Security Batteries to support system stability;New Virtual Power Plants; andDemand Management initiatives to maximise the value of solar energy production.
To make sure we maintain and increase reliability and certainty of our grid, the new plan will be staged.
1. Ready (2021 - 2023) - ensuring the infrastructure and systems are in place, including:
Establishing a new Renewable Energy Hub;Installing batteries for homes and communities. This work is ongoing, under the Home and Business Battery Scheme and the Remote Solar Program; Early-stage procurement of flexible, renewable capable, and appropriately sized generating assets that are fast-starting, modular and mobile to complement the existing power system - a project Territory Generation is working on.
2. Set (2024 - 2026) - this stage is about getting ahead of the curve before the retirement of the current thermal generators in 2027, and building momentum for renewable investment. This stage will include:
The operation of virtual power plants; andIncentivising pricing structures that reward customers for shifting energy use to the day.
3. Go (2027-2030) - by this stage, smaller, agile, renewable capable generators are available, with some legacy assets retained under standby arrangements to ensure grid capacity and facilitate response to growth opportunities for the Territory's industrial sector.
The System Plan aims to maximise opportunities and attract new investments that deliver on the Territory's Renewable Energy Target.
It also builds on, and complements existing Territory Labor Government initiatives including the Home and Business Battery Scheme, Solar in Schools initiative and 35MW Battery Energy Storage System.
