Redefining off-peak to consume renewable energy

According to new research from the Australia Institute and Buildings Alive, Australia’s off-peak hot water systems should be reconfigured to consume electricity in the middle of the day rather than at night.

This simple change could redirect much of the clean, cheap renewable energy currently being wasted, or “curtailed”, by the National Energy Market (NEM) during the day.

Analysis of NEM data suggests that annual forced curtailment for 2023-24 was around 4,000GWh. This represents around 9.3 per cent of Australia’s total annual wind and utility solar generation.

The Executive Director of the Australia Institute, Dr Richard Denniss, said it is absurd that Australians regularly waste cheap and clean renewable energy.

“While persistent claims of a looming energy crisis and gas shortage ring out across the country, we are abandoning nearly 10 per cent of the current renewable capacity in our grid. It is now up to the Federal Government to make the necessary changes that will allow Australians to properly access clean, cheap, renewable energy. If off-peak hours were moved away from the time of day dominated by coal-fired electricity and towards the time of day when the sun is shining brightest, households would save money, and we would reduce emissions.”

Off-peak systems account for around 30 per cent of Australian household hot water systems. They are designed to use power overnight, when electricity demand has historically been lowest, but during which coal-fired generators have kept producing electricity regardless.

Off-peak times could be redefined, with systems reorganised to consume renewable electricity during the middle of the day, when there is an abundant supply.

Research by the Institute for Sustainable Futures at the University of Technology Sydney estimates that switching off-peak hot water to the middle of the day could have provided around 4,000GWh of flexible demand in 2020 – coincidentally, almost the exact level of renewable curtailment in 2023–24. This could save up to $6 billion in household electricity and energy costs by 2040.

“This is the low-hanging fruit of the energy transition,” Buildings Alive’s CEO, Dr Craig Roussac, said. “This relatively simple and cost-effective intervention in our energy market can yield significant gains. While the problems faced by the electricity system of the 2020s are different from those faced in the 1950s, off-peak hot water systems could again play an important role in reducing consumer costs and increasing efficiency. State and Federal Governments across Australia should harness this opportunity now so that future pressures on the grid can be eased and Australians can access abundant, clean, and cheaper energy in their homes.”

Research on off-peak hot water in the 21^st century can be found on the Australia Institute website.

Image: qingwa/stock.adobe.com

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