Prosper in a dynamic world
Search

Why did electricity demand hit a record low?

 

On the closing day of 2023, rooftop solar boomed in SA and Vic while record low energy demand was recorded in the two states.  

On Sunday, December 31, mild temperatures and sunny skies were behind the new record low energy demand in SA and Vic. 

The satellite image below shows the clear skies on Sunday across Australia’s southeast mainland, which allowed rooftop solar output to become the leading energy source in SA and Vic. 

Image: Himawari-9 satellite image at 1pm AEDT on Sunday, December 31, 2023. Source: RAMMB/CIRA 

According to the Australian Energy Market Operator (AEMO), Victoria’s minimal operational demand was 1,564 MW on Sunday, December 31, which beat the previous record that was set Sunday, November 12, 2023. SA’s demand dropped into the negatives on the same day, reaching as low as -26MW on New Year’s Eve, which trumped the previous record low set back in October 2023. 

These new records superseded the ones set only several months ago, showing the National Energy Market (NEM) has had a period of abnormally low demand in the past couple of months. This has been driven by cooler temperatures under the influence of a positive phase of the Southern Annular Mode (SAM) and the waning impact of El Nino in December. 

The image below shows that on the same day, rooftop solar (yellow) contributed most of SA and Vic energy needs.  

Image: Vic and SA electricity generation on Sunday, December 31, Source Wattclarity 

The Image above also shows that wind and solar farms contributed near zero energy demand during the middle of the same day. It also shows that brown coal and rooftop solar were the two main sources of energy for the grid in the middle of the day in the states.  

On Sunday, winds were relatively light under the influence of a high-pressure ridge extending from Bight to the southern Tasman Sea. 

According to AEMO, rooftop solar contributed two-thirds of VIC’s & all of SA’s total energy needs on December 31. 

Rooftop solar has been increasing year-on-year since 2018, driven by a boom in solar installations across Australia.  

Looking ahead, January looks to be wetter and cloudier than average across much of the NEM. February is expected to see near-to-below average rainfall and cloud, which could increase solar output in the closing month of summer. 

Weatherzone Business has grown to become the outright leader within the Australian energy market, serving wind, solar, hydro, trading, utilities and network companies.

You can’t control the weather, but you can gain precision insights to optimise your response. What lights us up is providing your energy business with tailored weather information to reduce your risk and keep you moving ahead of the curve. 

Our services cover all aspects – from wind and solar generation to demand forecasts, wholesale markets to retail so, no matter where your company sits, we have solutions for you. We have worked closely with market participants to create products that meet the evolving needs of the sector, aiming to increase safety and profitability for our customers. 

Benefit from the timely delivery of accurate weather information, allowing informed and effective decision-making. For more information, please contact us at apac.sales@dtn.com. 

Latest news

Satisfy your weather obsession with these news headlines from around the nation, and the world.

Severe thunderstorms to hit NSW businesses and industries on Friday

Intense thunderstorms are likely to pummel parts of NSW on Friday, with damaging winds, large hail and heavy rain all a risk for mining, transport, insurance and aviation sectors. A cold front and associated low pressure trough will sweep across NSW on Friday, causing a relatively cool air mass travelling from the south to clash […]

Springtime temperature see-saw threatens NSW with low energy reserves

Two bursts of heat will impact Sydney and NSW in the coming week, driving high energy demand and a forecast Lack of Reserve Level 2 (LOR2) issued by AEMO. Bursts of springtime heat moving east The DTN forecast for Sydney below, generated by our professional team of weather risk analysts, shows two spikes in heat […]

US Climate Prediction Center declares La Niña – what this means for Australian industries?

A La Niña advisory has been issued by the US Climate Prediction Center (CPC), indicating that La Niña conditions have emerged in the tropical Pacific Ocean and are expected to continue for the coming months. What is La Niña? La Niña is one of three phases of the El Niño-Southern Oscillation (ENSO), a coupled ocean-atmosphere […]

Severe thunderstorms, dry lightning and damaging winds spark fires over NSW

Fires were triggered in central NSW by dry lightning on Wednesday as high-based severe thunderstorms tracked over the region which also produced damaging winds. The satellite loop below shows a cloudband moving over NSW on Wednesday afternoon and evening. Clear skies through the earlier part of the day allowed ample surface heating, helping fuel and […]