Work from home will test summer electricity grid

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Energy Users Association of Australia has warned that the high proportion of people working from home (WFH) could place immense pressure on Australia’s electricity grids due to increased use of air conditioners:

According to research company Roy Morgan, more than 4.3 million Australians are working from home as employees and employers continue to take a cautious approach to coronavirus social-distancing.

But warmer weather has come with a warning that increased use of air-conditioning in homes could lead to more blackouts and higher electricity bills.

“Air-conditioning is what drives our maximum demand in Australia,” said Peter Dobney, the former founding chairman of the Energy Users Association of Australia.

“We can expect higher prices, in fact, I think that’s a certainty”…

Blackouts can be sparked when electricity infrastructure is overwhelmed by demand.

When that happens, energy providers have to choose areas of the grid to turn off, Dr Bannister explained.

“And with more people working from home there will be a higher load in the residential areas,” Dr Bannister said.

“But there won’t be a comparable drop in the commercial load, because most of the buildings are still operating.”

Rooftop solar and battery storage has never looked so good.

WFH offers environmental benefits from having less cars on the road, less takeaway food, etc. But these benefits will be negated in summer via increased energy use.

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This year will be an interesting stress test of the grid.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.