The energy transition: how are factories reinventing themselves?

As the energy transition accelerates, thermal power plants designed for the fossil fuel era face a crucial dilemma: to become obsolete or to adapt. As global investment in renewable energies explodes, wind and solar photovoltaics dominate this energy revolution, reinforcing the need for innovative solutions to maintain the stability of electricity grids.

GlobalData estimates that annual additions of wind and solar photovoltaic capacity will reach record levels in the major economies. In the US, these additions are expected to peak at 6 GW for wind and 35 GW for solar, while in China they will climb to 60 GW and 150 GW respectively. At the same time, financial flows to thermal power plants are in sharp decline. From a peak of $160 billion in 2011, annual global investment in new thermal power plants is expected to fall to around $70 billion by 2030, a reduction of more than half.

The integration of renewable energies poses unique challenges, particularly in terms of the stability of electricity grids. Thermal power plants, thanks to their ability to adjust their production rapidly, have historically ensured the reliability of grids. However, the intermittency of renewable energies requires new solutions.

An emerging technology, the rotating grid stabiliser (RGS), provides an innovative response. Developed by Siemens Energy, the RGS makes it possible to maintain grid stability by providing inertial and short-circuit power, even without producing electricity. This makes it particularly valuable during periods when the wind and sun are absent.

A prime example of this transition is the Townsville power station (TPS) in Australia. In partnership with Powerlink and RATCH-Australia, Siemens Energy is deploying its RGS hybrid technology. This system, equipped with an SSS (Synchro-Self-Shifting) clutch, enables the power station to switch instantly from generation mode to grid stabilisation mode.

Scheduled to be operational in 2025, this transformation will enable TPS to supply up to 400 megavolt-amperes (MVA) of short-circuit power and electrical inertia ranging from 250 to 1,000 megawatt-seconds (MWs). This initiative not only extends the life of the plant, but also reduces the cost of modernisation, estimated at 50% less than installing synchronous capacitors.

Siemens Energy is positioning itself as a key player in the transition of thermal power stations to hybrid stabilisation solutions. Its expertise, demonstrated in projects such as the conversion of the Killingholme power station in the UK, offers plant operators options for reallocating their assets and meeting the stability challenges of grids dominated by renewable energies.

As governments and investors push for carbon neutrality targets, power plant operators need to adopt proactive strategies. By transforming their existing infrastructure into hybrid grid stabilisation hubs, thermal power plants can adapt to the realities of a renewable energy mix while avoiding becoming stranded assets.

Hybrid RGS technology, as a sustainable and cost-effective solution, represents a key opportunity to reinvent the role of thermal power stations in a world in transition. For players such as RATCH-Australia, this approach enables them to secure their operations while contributing to grid stability and energy sustainability.