Evaluation of PV solar power generation scenarios in reducing electricity spot price during hot summer days in Victoria, Australia

Australia, like other industrial and emerging economies, is faced garbling with the challenge of reducing its greenhouse gas (GHG) emissions. Electricity generation is Australia´s largest source of GHG emissions [1]. Power usage increases on hot summer days in Australia in general and in Victoria and South Australia in particular where it peaks around 6-7pm. To meet future growth in electricity consumption and peak demand a sizable investment in infrastructure of electricity transmission and distribution networks is required. The objective of this paper is to evaluate the very high cost of electricity supply, as reflected in the spot price, during peak demand periods in Victoria (especially during hot summer days where the temperature reaches around 40 degree Celsius) and to assess how solar energy sources may be used during such peak periods to reduce the cost of supply.