Australia can now run its grid on close to 100% renewables. That’s a result of a three-year study. The best thing? It is also affordable. Let's break down the key insights—and what they mean for cleantech scaleups.
💰 The Cost Breakdown: Renewables Won’t Break the Bank
The article (link at the end) highlights that transitioning to a grid powered by renewables won’t come with an exorbitant price tag. In fact, they estimate the cost to be close to $107 per MWh, including transmission, for a nearly 100% renewable grid. That’s cheaper than most new fossil fuel power plants today. Renewable energy, led by wind and solar, has plummeted in cost over the last decade, and it’s only getting more competitive.
🔋 Batteries: Short-Term Storage is Key
While it’s true that batteries will play a crucial role in stabilizing an intermittent renewable grid, the article suggests that we might not need a lot of storage. According to the report, 5 hours of storage is enough to manage most fluctuations in renewable generation. Up to 10 hours of storage will be needed in extreme cases. This is great news for lithium-ion battery producers—they’re already set up to handle this type of short-term storage.
So, What Does This Mean for Cleantech Scaleups?
1. Battery Energy Storage is About to Take Off 🚀
As the share of renewables increases, battery storage startups are primed for growth. Lithium-ion batteries, in particular, are perfectly positioned to meet the short-term storage needs of a near 100% renewable grid. But with growth comes competition—scaleups in this space will need to be sharp to stand out. Among the alternative battery technologies, zinc-air batteries could prove to be the most efficient solution for slightly longer-term storage.
2. AI-Driven Software Will Be the Silent Hero 🤖
One trend to watch is the rise of AI-driven software for managing and predicting intermittent renewable generation. As software gets better at forecasting supply and demand, the need for backup power will decrease. The grid will get smarter, requiring less physical backup and relying more on precise, data-driven decisions to keep the lights on.
3. Don’t Write Off Traditional Energy Just Yet 🔋⚡
While renewables will dominate, there’s still room for nuclear reactors, and even (gasp!) natural gas peaker plants, to provide grid stability. These will act as support rather than core energy providers. But we’re headed toward a world where renewables are the backbone of energy production.
4. Predictive Maintenance Will Be Essential 🛠️
As solar and wind become the core of the energy grid, keeping these assets running efficiently will be more important than ever. Predictive maintenance software for solar farms and wind turbines will continue to grow in importance, ensuring that downtime is minimized and renewable generation remains stable.
The Time to Scale is Now
The transition to a near 100% renewable grid is not just possible—it’s happening. Battery storage and advanced AI software will play a critical role in this shift, creating massive opportunities for cleantech scaleups. But with opportunities come challenges. The competition will be fierce, and only those who innovate and scale smartly will thrive in this rapidly changing landscape.
So, if you're a founder in the energy storage, predictive maintenance, or renewable software space—now is your time to shine. 🌞🔋
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Here is the article that I am quoting: https://reneweconomy.com.au/a-near-100-per-cent-renewable-grid-is-readily-achievable-and-affordable/