AEMO's 30-year roadmap to supply affordable electricity

July 01, 2022 10:26 AM AEST | By Toshiva Jain

AEMO's 30-year roadmap to supply affordable electricity — Image source: © Argus456 | Megapixl.com

Highlights

AEMO has published the 2022 Integrated System plan (ISP), which entails the 30-year roadmap for investments in National Electricity Market.

Under the 30-year-long roadmap, five projects have been listed as immediately actionable. These projects include HumeLink, VNI West, Marinus Link, Sydney Ring and New England REZ Transmission Link.

Increase in investment is essential for grid-scale wind and solar capacity, dispatchable storage, hydro, and gas-fired generation.

Amidst the current energy supply chain woes, it has become essential to rethink the energy source. Initially, it was only from the climate perspective; however, lately, the significance of renewable energy sources has increased because of their reliability, security and affordability factors.

Australia’s per year emissions are one of the largest across the world. Additionally, its dependence on Russian oil has fueled a major energy crisis. Thus, to combat the current and long-term energy and climate crises, the Australian Energy Market Operator (AEMO) has released its new 30-year roadmap to supply affordable electricity in the country.

AEMO’s 30-year roadmap

AEMO recently published the 2022 Integrated System plan (ISP), which entails the 30-year roadmap for investments in the National Electricity Market. The said plan has been designed with the involvement of various stakeholders such as policymakers, state governments, consumers, and energy industry representatives.

The 2022 ISP is important because it carries out the plan for Australia’s energy transformation based on an “optimal development path” of essential transmission investments. This path will lead to a low-cost, durable, renewable energy supply that intends to replace the existing coal dependency.

Under the 30-year-long roadmap, five projects have been listed as immediately actionable. These include HumeLink, VNI West, Marinus Link, Sydney Ring and New England REZ Transmission Link.

Source: © Airubon | Megapixl.com

The primary importance of the 2022 ISP is that it can strengthen the National Electricity Market as the existing power generation plants are ageing. Additionally, the new plan is in sync with the technical innovation, government policies and, most importantly, the need for energy security and customer choice.

AEMO forecasts that annual energy consumption from the grid will increase by 100% by 2050 as heating, cooking, transport, and industrial processes become more electrified. Additionally, the plan is to eliminate 60% of the current coal dependency by 2030.

The energy industry is in extreme need to achieve the transformation from coal-based industry to renewable-based industry. However, investments need to be increased nine-fold for a successful transformation, maintaining a secure, reliable, and affordable electricity supply to consumers and industrialists through this 30-year road map. The increase in investment is essential for grid-scale wind and solar capacity, dispatchable storage, and hydro and gas-fired generation.

Conclusively, if the targets of ISP are met efficiently, Australia may be able to achieve the state and national climate targets. Besides, the roadmap would also contribute to economic growth through cost-efficient and reliable energy supply.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.