In Australia, solar energy has gone from being the promise of the future to a problem of the present. There is so much sun, and so many panels, that the electrical grid is reeling from excess production. During the middle of the day, millions of rooftops feed electricity back into the system, generating more energy than the grid can absorb without losing stability. At that time, wholesale prices fall to zero and even negative values.
The solution that the Australian government has found is as simple as it is disruptive: giving away electricity for three hours a day.
The challenge of excess. Australia has been experiencing its particular energy paradox for years: the transition towards renewables has advanced so quickly that the system is beginning to suffer its consequences. More than four million homes —one in three— have solar panels on their roofs. This distributed generation already produces more electricity than all the coal plants still active.
According to Reutersthe program, dubbed “Solar Sharer”, will allow millions of homes to access three hours of free energy a day, even those who do not have solar panels. “People who can move their electricity consumption to the zero-cost period will benefit directly, whether or not they have solar panels and are homeowners or tenants,” explained Energy Minister Chris Bowen.
Energy for everyone. The plan is not optional for electricity companies: the Australian Government will require them to offer three hours of free electricity each day during the midday solar peak. The measure will start in 2026 in New South Wales, South Australia and southeast Queensland, and will be extended to the rest of the country if it works as expected.
To make it possible, the Executive will modify the Default Market Offer (BMD)the benchmark fee that limits what retailers can charge. From now on, that rate will include a daily slot of zero cost, just when the grid is saturated with solar energy.
Participating households must have a smart meter and reorganize their consumption: run the washing machine, charge the car or turn on the air conditioning when the sun is at its highest.
A double objective. On the one hand, it seeks to relieve pressure on the grid and reduce emissions. According to the Financial Timesthe plan seeks to utilize excess solar capacity and rebalance the electrical grid to reduce dependence on coal and gas. Tim Buckley, director of the Climate Energy Finance think tank, called it an “obvious” measure, as it will create a “demand pool” in the middle of the day, helping to stabilize the system.
The Australian Government has been committed to accelerating the energy transition for some time. In 2022, Bowen set a goal for 82% of electricity to come from renewable sources by 2030, as detailed by Reuters. Initiatives like the Solar Sharer They are added to the subsidy for domestic batteries, which will allow part of that free energy to be stored for night use.
Not everyone is happy. The Australian Energy Council (AEC), the consortium that brings together the main electricity companies, criticized the Government for not having consulted the sector before the announcement. Its executive director, Louise Kinnear, warned that “Lack of consultation risks damaging sector confidence and generating unintended consequences.”
Additionally, some companies fear the plan will increase network costs and force smaller retailers out of the market. According to FTemployers fear that the measure will distort competition, although defenders of the plan assure that the real risk is not acting in the face of a saturated network. Despite this, large players such as AGL Energy and Ovo Energy have shown willingness to collaborate with the Government to define the technical details.
From Australia to Spain. The Australian proposal has sparked interest in other sunny countries, especially in southern Europe, where solar energy has also grown explosively. From there the inevitable question arises: can we replicate it in Spain? Being one of the largest photovoltaic powers in Europe and with negative price episodes In the electricity market, it is logical to consider this possibility.
However, the Spanish electrical system goes through a phase of instability: while the south of the peninsula produces more solar energy than it consumes, the north continues to depend on gas plants, the only ones capable of providing the “inertia” necessary to stabilize the network.
Although the hourly tariff system and smart meters would allow the Australian measure to be technically replicated, the European framework prevents offering free electricity directly. The price is set in the wholesale market, managed by OMIE, and the State cannot intervene except through subsidies or discounts.
In short: Spain has the sun and the technology, but not the regulatory flexibility. As noted by analyst Joaquín Coronado“we have the generation of the future, but we continue to use the crutches of the past.”
The global experiment. Giving away electricity to avoid a collapse of the grid may seem contradictory, but it contains a lesson about the energy transition: the problem of the 21st century will not be producing energy, but managing it.
While Europe debates how to lower the bill, Australia has chosen to share its excess. If the plan works, it could become a reference for other countries with strong solar penetration, such as Spain or Italy.
In the words of Minister Chris Bowen“the more people take advantage of the offer and transfer their consumption, the greater the benefits will be for everyone.” Perhaps the future of energy is not just about paying less, but about using light when the sun gives it away.
Image | Unsplash
Xataka | 75% of the universe is made up of unknown matter. Australia has gone down to look for him in a mine
GIPHY App Key not set. Please check settings