The Australian Energy Market Operator (AEMO) has released its finalised Integrated System Plan for 2024, outlining a pathway to a reliable, renewable grid by 2050.
The plan, which tested 1000 scenarios, confirms that a combination of renewable energy, battery and pumped hydro storage, and flexible gas offers the most economic benefits for households and industry.
Chris Bowen, Federal Minister for Climate Change and Energy said the Government’s reliable renewables plan is the only plan supported by experts to deliver the clean, cheap, reliable and resilient energy system that Australians deserve.
“AEMO tested 1000 scenarios to identify the lowest-cost plan that would also meet our growing electricity needs and keep the grid reliable between now and 2050,” he said.
Key highlights from the report include:
Renewables in the National Energy Market momentarily reached 72 per cent in 2023, with average penetration reaching just under 40 per cent.
AEMO will soon be managing an energy system that is at times supplied entirely by renewable energy – this means the grid needs more flexible power.
In the past 12 months, 13.5GW of generation and storage projects were approved for grid connection.
Half of the 5,000km of transmission lines needed by 2030 is already underway.
More than 60,000 people could be directly employed to build and maintain the new energy infrastructure between now and 2050.
Coal is becoming more unreliable, more expensive and difficult to maintain, and less competitive against renewable electricity supply.
Consumers are at risk of bill price shocks if coal generators close on short notice, or fail.
The report supports the Albanese Government’s targets of 82 per cent renewables in the grid by 2030 and net zero by 2050. It projects $22 billion in benefits from this approach compared to alternative energy mixes.
The report calls for urgent investment in generation, storage, and transmission. It also notes that strong coordination of consumer energy products could reduce infrastructure needs by up to $4 billion.
According to the government, AEMO’s plan was developed in collaboration with over 2100 technical and delivery specialists, investors, and experts from across the energy industry, as well as consumer and community representatives.
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