Why energy storage matters for Australia's renewable future
Photo courtesy of Ausgrid.
By Graeme Martin
Australia is rapidly shifting towards renewable energy, and energy storage is becoming a key blocker. Right now, 4 million homes and businesses have rooftop solar, and that number is expected to double in the coming years. But without proper storage, much of this clean energy could go to waste.
How energy storage works
Batteries play a crucial role in making solar energy useful around the clock. They store extra energy produced during sunny hours and release it when it's needed most—like in the evening, on extremely hot days, or during power outages. This helps keep the grid stable and reduces our reliance on coal power.
Storage isn’t just about home batteries. It includes:
· Community batteries – shared storage that benefits whole neighbourhoods
· Grid-scale batteries – massive storage facilities that support the entire energy system
· Pumped hydro – using water reservoirs to store energy
Why storage is essential
Without proper energy storage, renewable power can’t be used to its full potential. This would be a waste, especially considering the large investments being made in clean energy. Thankfully, individuals, communities, and governments are working together to fix this.
Batteries also solve another challenge—what happens when the sun isn’t shining or the wind isn’t blowing? Storage allows energy to be saved and used later, ensuring a reliable power supply.
Australia’s renewable energy goals
In 2024, renewables provided about 40% of Australia’s energy. The goal is to reach 82% by 2030. The remaining 18% will come from fossil fuels, which are still needed for industries like alumina smelting. Since fossil fuels are running out, it makes sense to save them for essential uses while maximising renewables.
However, storage has lagged behind energy production. It’s like building cars without garages—useless if we don’t have a way to store and use the energy efficiently.
Lower costs and energy independence
Renewable energy is not only cleaner but also cheaper. The CSIRO says that even when you include storage and new power lines, renewables are the most affordable way to generate electricity. Lower costs mean lower electricity bills, which is crucial given rising living expenses.
More energy storage also means energy resilience—we reduce the grid reliance on large, centralised systems. This results in cheaper, more reliable, and sustainable energy for everyone.
References:
https://www.climatecouncil.org.au/resources/battery-storage-batteries-decarbonising-australia-cars-homes-grid-2/
https://www.csiro.au/en/news/All/Articles/2023/March/future-energy-storage
https://aemo.com.au/newsroom/media-release/high-temperatures-push-electricity-demand-increase-but-prices-fall-as-renewables-continue-to-grow