Post: Australia’s electricity grid to remain reliable if renewables projects delivered, says AEMO

Australia’s electricity grid to remain reliable if renewables projects delivered, says AEMO

Investments in renewables including solar, wind, batteries, pumped hydro and transmission links are vital to ensure the power grid remains reliable, AEMO has said.

In its 2024 Electricity Statement of Opportunities (ESOO), published on 29 August, AEMO  noted that when compared to last year’s report, the reliability outlook has improved, assisted by the progress of 5.7GW of grid-scale generation and storage, and 365km of new transmission developments. But it highlights that expected investments in new generation, storage and transmission must be delivered on time and in full to maintain a reliable supply of electricity to homes and businesses. This includes federal and state government schemes, supported generation projects, actionable transmission developments, the coordination of consumer energy resources, and additional demand flexibility. Modelling indicates reliability gaps at times over the next 10 years if these projects are delayed.

AEMO now projects lower growth in energy consumption and maximum demand for most NEM regions than was previously forecast. But reliability risks are forecast higher than the relevant reliability standard in:

• Victoria from this coming summer, in 2027-28 and from 2028-29 after Yallourn Power Station is advised to retire
• New South Wales this coming summer, again in 2027-28 when Eraring Power Station is now advised to retire, and from 2031-32
• South Australia this coming summer, again in 2026-27 when Torrens Island B and Osborne Power Stations are advised to retire, and in 2033-34. 

To mitigate these risks, AEMO said it will request the Australian Energy Regulator to put an obligation on retailers and liable entities to enter sufficient contracts to cover their customers peak demand needs, through the retailer reliability obligation. AEMO also said it will take “prudent action and seek to procure additional reserves for the coming 2024-25 summer, safeguarding consumers in a cost-appropriate manner”.