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AEMO outlines 30 year electricity market investment

Manufacturing News

The Australian Energy Market Operator (AEMO) launched its 2022 Integrated System Plan (ISP), outlining a 30-year roadmap of investments for the National Electricity Market (NEM).

AEMO has involved more than 1,500 stakeholders – including policy makers, governments, consumers and energy industry representatives – to produce its third ISP, based on rigorous economic and engineering analysis.

AEMO CEO Daniel Westerman said: “Australia is experiencing a complex, rapid and irreversible energy transformation.

“The 2022 ISP informs Australia’s energy transformation, based on an ‘optimal development path’ of essential transmission investments that will efficiently enable low-cost, firmed renewable energy to replace exiting coal generation.”

Westerman said the transmission projects were forecast to deliver $28 billion in net market benefits, returning 2.2 times their cost of $12.7 billion.

AEMO identified five projects which should progress as urgently as possible – HumeLink, VNI West, Marinus Link, Sydney Ring and New England REZ Transmission Link.

AEMO and stakeholders identified the most likely future for the NEM, called the ‘step change’ scenario.

Westerman said: “The step change scenario forecasts annual electricity consumption from the grid will double by 2050, as transport, heating, cooking and industrial processes are electrified and 60 percent of current coal generation exiting by 2030.

“To maintain a secure, reliable and affordable electricity supply for consumers through this transition to 2050, investment is required for a nine-fold increase in grid-scale wind and solar capacity, triple the firming capacity (dispatchable storage, hydro and gas-fired generation) and a near five-fold increase in distributed solar.”

Westerman said the market had been experiencing accelerated coal-fired power station closures, generation unavailability and high commodity prices, further highlighting the need to invest in the transmission plan outlined in the ISP.

More here.

Image: AEMO

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