EV and PV are Booming, but is the Grid Ready to Coordinate them?

Abstract

In this era of deep decarbonization, when the new mantra is green energy everywhere, can we find ourselves in a situation where we have too much green energy? Believe it or not, this is the energy paradox faced by Australia on October 3, 2024. The proliferation of photovoltaic panels on roofs is causing an over-production of electricity, threatening the grid's stability. On that day, the peak of solar energy reached a record level, far exceeding the expected consumption level. As a result, the electric load vanished, and the total demand seen by the dispatch center crossed the dangerous low limit set to ensure network stability. In Victoria, one of the wealthiest states in Australia, the electricity system is designed for demand ranging from 1,865 to 10,000 megawatts, with a typical average of 5,000 megawatts. But on Saturday, 3 October, the market fell to a record low of 1,352 megawatts. This unprecedented situation has put the electricity grid under immense pressure. While not resulting in a widespread blackout, it demonstrates the urgent need to adapt energy infrastructure and policies. Solutions such as cost-effective large-scale battery storage or virtual power plants improving the capacity to manage excess solar energy are urgently needed. Other countries, notably California, have experienced similar challenges, illustrated by the “Duck curve” (see Figure 1). The most straightforward mitigation means to “dump” the excess PV energy by capping their production, which amounts to increasing their total cost of ownership and lost opportunity for deeper decarbonization.