Insight

South Australia power crisis: renewables, batteries and the future role of gas

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Report summary

Batteries and renewables will start displacing gas in South Australia by 2025. South Australia with its fast increasing penetration of renewables has become a case study for a power market in transition. Since 2016 politicians and the public have been increasingly demanding answers for the blackouts and high electricity market prices. Meanwhile the crisis gained international exposure as Elon Musk weighed into the debate with an offer to install battery capacity. Now with plans to build the worlds largest battery power plant and an open cycle gas turbine for power system security questions are also being raised about the commerciality of these decisions. This insight is the first joint research conducted by Wood Mackenzie Greentech Media and MAKE. Our study is aimed at assessing the most competitive generation options available for South Australia from now to 2035. We also analyse the impact of renewables on annual monthly and hourly gas demand.

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