Power options outlined
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The Australian Energy Market Operator (AEMO) has released its 2024 Electricity Statement of Opportunities (ESOO).
The authority says the documents outline the critical investments needed to ensure the reliability of Australia’s National Electricity Market (NEM) over the next decade.
The report stresses the necessity of timely and complete delivery of projects in generation, storage, and transmission to maintain a stable electricity supply for homes and businesses across the east coast.
AEMO’s CEO, Daniel Westerman, says that with renewable sources currently supplying 40 per cent of the electricity for the eastern states, the continued expansion of renewable generation and storage projects is crucial.
“Investments in renewable generation and storage continue to increase, and the pipeline of new projects continues to expand,” Westerman said.
Since the 2023 ESOO, AEMO says there has been an improvement in the reliability outlook due to the advancement of 5.7 gigawatts of grid-scale generation and storage projects and the completion of 365 kilometres of new transmission lines.
These developments, coupled with the extension of a coal plant and a higher uptake of rooftop solar, have contributed to the positive outlook.
However, AEMO warns that the anticipated reliability gains depend on the successful and timely implementation of these projects.
While the report indicates that the projected reliability gaps are now smaller than previously forecasted, it cautions that any delays could lead to a deterioration in reliability.
Despite the short-term improvements, AEMO is taking precautions for the upcoming summer, tendering for off-market reserves in Victoria, New South Wales, and South Australia to mitigate the risks of low reserve conditions.
Additionally, AEMO is engaging in extensive preparations with the industry to ensure the power system is prepared for periods of peak demand.
The full ESOO is accessible here.