4,000GWh of solar PV and wind curtailments in Australia could be mitigated by off-peak hot water, think tank says

Facebook
Twitter
LinkedIn
Reddit
Email
This could save up to AUS$6 billion in household electricity and energy costs by 2040. Image: Horizon Power.

Public policy think tank the Australia Institute has released new research arguing that reconfiguring off-peak hot water systems could mitigate 4,000GWh of curtailed solar PV and wind energy on the National Electricity Market (NEM).

Curtailment remains at the forefront of future renewable energy and transmission network developments. Much of the renewable energy needed to decarbonise global grids could be significantly supported if the grid had enough operational capacity to transmit green energy produced from solar PV and wind.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Due to grid restrictions, the Australian Energy Market Operator (AEMO) often instructs large-scale generators such as solar PV and wind farms to disconnect from the NEM to prevent an oversupply of electricity at peak periods. Until the grid has been reinforced and additional capacity has been unlocked, this will likely continue even as new projects become operational.

The Australia Institute’s research highlights that annual forced curtailment figures stood at 4,000GWh for 2023-24, representing around 9.3% of Australia’s total wind and utility-scale solar generation.

Some of this could be prevented. According to the Australia Institute, historically, off-peak hot water systems have been set to operate at night. Still, they could be reconfigured to consume electricity during the middle of the day when there is an abundant supply of renewable electricity. Doing so could provide around 4,000GWh of flexible demand and thus prevent a certain degree of the curtailment.

This could also have an economic benefit. The research indicates that implementing this measure could save up to AUS$6 billion (US$3.9 billion) in household electricity and energy costs by 2040.

ARENA investment to boost NEM’s operational capacity

It is worth mentioning that the Australian Renewable Energy Agency (ARENA) recently allocated AUS$15 million in funding to the AEMO to increase the NEM’s operational capacity. In doing so, this could help reduce curtailment.

This same funding will aid solar energy and other renewable energy generation technologies like hydro and wind. It will also support energy storage, often regarded as a vital cog in developing a renewable energy-based grid.

Dr Richard Denniss, executive director at the Australia Institute emphasised that the country is currently “turning its back” on nearly 10% of the current renewable energy capacity in the grid and that a reconfiguration of off-peak hot water systems could help Australians access “clean, cheap renewable energy”.

“The time for inflexible, expensive and polluting electricity from fossil fuels has come and gone. It is now up to the Federal government to make the necessary changes that will allow Australians to properly access clean, cheap renewable energy,” Denniss added.

“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.”

Dr Craig Roussac, CEO at Buildings Alive, who also had a hand in producing the research, said this could be “the low hanging fruit of the energy transition”.

Read Next

July 11, 2025
Sabanci Renewables, the North American subsidiary of Turkish conglomerate Sabanci Holdings, is building a 156MWdc solar project in McLennan County, Texas.
July 11, 2025
Renewable electricity generation has grown more than twice as fast as total global electricity generation since 2012, according to the International Renewable Energy Agency (IRENA).
July 11, 2025
Indian independent power producer (IPP) Juniper Green Energy has commissioned an additional 71MWp at Chapalgaon Solar Project in Solapur, Maharashtra.
July 11, 2025
The Australian Energy Market Operator (AEMO) has revealed that several utility-scale solar PV power plants experienced curtailment of above 25% in the National Electricity Market (NEM) in 2024.
July 10, 2025
German renewables company BayWa r.e. has secured a €3 billion (US$3.5 billion) loan for 'operational initiatives and pipeline expansion.'
July 10, 2025
US renewables developer Invenergy has launched commercial operations of 250MW Fairbanks Solar Energy Center in Sullivan County, Indiana. 

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 22, 2025
Bilbao, Spain
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK