Electricity Generation: The Impact of Rooftop Solar

Capacity Factor of an electricity generator is its actual generation as a percentage of its installed capacity.  A generator with an installed capacity of 1,000 Megawatts that generates 500 Megawatts has a Capacity Factor of 50%.  Obviously it is a good idea to have CF as high as possible as that will give a better return for the time, money, and effort used to build and run it.

In this post I am looking at Capacity Factors of all generators in the National Electricity Market (NEM), firstly excluding rooftop solar, then looking at CF when rooftop solar is included.

I use data available from Open NEM for the week from 8^th to 15^th March.

Firstly, Figure 1 shows the total of all major generators in Queensland, New South Wales, Victoria, Tasmania, and South Australia.

Figure 1:  Total NEM Generation 8-15 March

Solar and wind get preference, such that coal is curtailed when the sun is shining, but has to ramp up to meet demand from late afternoon to breakfast time.  Hydro and gas follow the same pattern at a much lower level, while wind generation adds its two bob’s worth at unpredictable times.

Figure 2 shows the Capacity Factor for the whole network (if there was no rooftop solar):

Figure 2: Capacity Factor NEM (excluding rooftop solar)

During this week CF varied in a regular cycle, from 27.9% to 43.8%.  Figure 3 shows this daily cycle:

Figure 3: Capacity Factor by Time of Day- NEM excluding rooftop solar

The NEM is at its most efficient- makes best use of generation resources- between 6pm and 7pm at night.  There is a lower peak in CF at 7am to 7.30am.  There is a drop in CF in the early morning (at baseload time), but the lowest CF is between about 11.30am and 12.30pm on several days.

Capacity Factors for coal, gas, and hydro have cycles reflecting that of the NEM without rooftop solar.

Figure 4: Capacity Factor by Time of Day: Coal, Gas, Hydro

By contrast, wind’s CF, which on the afternoon of the 8^th was briefly over 50%, could be as low as 2.4% and averaged 20.5% for the week.

Figure 5: Capacity Factor by Time of Day: Wind

Decidedly unreliable and inefficient.

Solar generation is much more reliable (in the sense of predictable) as we see in Figure 6.

Figure 6: Capacity Factor by Time of Day:  Solar

Solar CF is between about 40% and 60% in the middle of the day.  Note that utility solar, with tracking panels, reaches close to maximum CF by mid-morning and maintains higher CF than rooftop at nearly every 30 minute period of daylight.  Between sunset and sunrise, CF is zero.  All those millions of panels are useless.

When we include rooftop solar in the generation mix, see what happens to the CF for the whole NEM grid:

Figure 7: Capacity Factor by Time of Day- NEM excluding rooftop solar

Maximum CF is now in the middle of the day.  Figure 8 shows the difference rooftop solar makes to the CF of the whole network:

Figure 8: Change in Capacity Factor by Time of Day with Rooftop Solar

Before 9am and after 3.30pm the system is worse off. While the CF for the whole network has been increased in the middle of the day by between 2% and 6%, the average has been reduced by 4.5%, at baseload times by about 6.5%, and in the evening by nearly 10%.  Every additional panel will reduce CF even further, and this is not even considering the additional network capacity needed to keep the system balanced with such a wildly fluctuating supply.  Not a bad effort for a generating system with an average CF last week of 14.9%.

The final two figures compare actual generation at 12 noon and 4am.

Figure 9: 12 Noon Generation 8-15 March 2023

That’s all the renewables enthusiasts see: solar outperforming coal.  They are willfully blind to baseload needs:

Figure 10: 4:00 a.m. Generation 8-15 March 2023

When the remaining 1,500 MW of Liddell are lost in April, and 2,880 MW at Eraring in August 2025, the 4,330 MW gap in supply at 4:00 in the morning won’t be filled by rooftop solar or by solar farms: it will be made up by the remaining coal units working even harder (giving coal an even higher CF) until the strain is too much and they break down, and by gas and hydro.  Inevitable result: higher prices and probable blackouts (sorry- load shedding).

People of my generation often say we have lived through the best of times.

What will the coming generation say?

(Source: OpenNEM)

The Surprising Cost of Electricity

Using data from OpenNEM here is a plot of the cost per MegaWatthour of the main sources of electricity across eastern Australia since 1999.

Figure 1: Historical Cost of Electricity

Plainly the price of electricity supplied by major generators rocketed up in 2022.  Gas and coal were far more expensive than wind and solar. 

QED, would say Chris Bowen and Albo.

But hydro was more expensive than coal- and has been for most of the last 24 years.  Snowy Hydro 2.0 might not be such a good idea.

However, which generation had the biggest percentage increase in price from 2021 to 2022?  Gas?  Get ready for a surprise!

Figure 2:  Percentage Increase in Market Value per Megawatthour from 2021 to 2022

Blame the Russians or evil gas and coal exporters as much as you like- our saintly renewable generators had the largest increases.  Wind generated electricity increased the most- by a country mile.

They’re not above making a fast buck at the expense of Australian consumers.

(Source: OpenNEM)