South Australian residents to enjoy lower power bills with launch by AGL of world’s biggest virtual power plant

In mid-July, residents of three Australian states were warned of higher electricity bills of $1,500 because of the planned rollback of generous solar feed-in tariffs. Fortunately for residents of South Australia, one of the three states in the list, AGL launched the world’s biggest virtual power plant in the state.

The $20-million project by the federal government, through the Australian Renewable Energy Agency (ARENA), is in partnership with AGL, an energy provider, and Sunverge, a leading energy storage company based in the US. The virtual power plant would connect 1,000 solar batteries installed in homes and businesses across South Australia and expect to lower the power bills of residents, reports Sky News.

Sunverge would provide residents with discounted solar-powered batteries which could store 7 megawatt-hours of energy with an output equivalent to a 5-megawatt solar plant. By helping the customers manage their electricity bills, the projects also contributes to the grid’s stability.

“We believe it will demonstrate alternative ways to manage peaks in energy demand, contributing to grid stability and supporting the higher penetration of intermittent, renewable generation on the grid,” Australian Financial Review quotes Andy Vesey, AGL managing director in Adelaide.

Tom Koutsantonis, SA treasurer and energy minister, says the project is a game-breaker and game-changer for renewable energy in Australia. He points out, “If we are to meet the agreements signed by the Prime Minister in Paris on carbon abatement and meeting our targets, we will need to decarbonise our electricity market.”

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Source: Deutsche Welle