The Australian Energy Market Operator (AEMO) has unveiled its Draft 2024 Integrated System Plan, providing a comprehensive roadmap for the nation’s energy transition.
According to AEMO, the plan outlined the optimal trajectory for generation, storage, and transmission investments crucial to meeting Australia’s energy needs as it endeavours to achieve a net-zero economy by 2050.
AEMO claimed that over the past 18 months, it has engaged in a collaborative effort with more than 1300 stakeholders, producing 60 presentations and reports and considering over 110 submissions from industry, consumers, communities, and governments.
Daniel Westerman, AEMO CEO, stressed the significance of industry, government, and consumer collaboration in developing the plan, which underscores the imperative for urgent investments in the face of the anticipated retirement of 90 per cent of coal generation in the next decade.
“As with previous reports, this plan shows that the lowest-cost pathway for secure and reliable electricity is from renewable energy, connected by transmission, supported by batteries and pumped hydro, and backed up by gas-powered generation,” he said.
The plan recommends significant investments, including nearly 10,000 km of new and upgraded transmission by 2050, tripling grid-scale variable renewable generation by 2030, and increasing it seven-fold by 2050. Additionally, it calls for a four-fold increase in rooftop solar capacity, reaching 72GW by 2050, and a substantial boost in dispatchable storage, hydro, and gas-powered generation.
AEMO’s analysis indicates that coal power stations are likely to close earlier than planned, necessitating 5000km of transmission, tripling renewable generation, and doubling dispatchable storage, hydro, and gas-powered generation in the next decade.
Minister for Climate Change and Energy Chris Bowen said the government had the right policy and investment settings in place for Australia’s energy future.
“Today’s updated draft energy plan from AEMO reiterates what we already know, firmed renewable energy is not just clean, it’s the cheapest way to ensure a reliable grid,” Bowen said.
“After 10 years of neglect, the task to build our modern grid that supports household and businesses with reliable energy as aging coal exits and solar surges is as urgent as ever.”
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