AEMO's 30-year roadmap to supply affordable electricity

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AEMO's 30-year roadmap to supply affordable electricity

 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.

Australia’s renewable energy sector 

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.

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