Post: “Reliability gaps” loom in in Australia’s electricity market

“In the next decade, Australia will experience our first cluster of coal-generation retirements, at least five power stations totalling 8.3GW, equal to approximately 14% of the NEM’s total capacity […] Without further investments, this will reduce generation supply and challenge the transmission network’s capability to meet reliability standards and power system security needs”.

“Although Australia has a strong (7.3GW) pipeline of new wind and solar plants, and battery storage projects, this falls well short of the development opportunity identified in the 2022 Integrated System Plan.

“High energy prices and new risks of energy shortages, resulting from the fast COVID-19 economic recovery and the war in Ukraine, have forced a reprioritisation of energy security. What is needed now, more than ever, is a holistic approach that delivers concurrently on the three transition imperatives – affordability, security of supply, and sustainability – at an accelerated pace. To meet this challenge, it’s crucial that supply-side interventions are supplemented with action on the demand-side to achieve the energy transition objectives in the required time frame.

“With the right technology and automation processes in place, current energy market volatility and security constraints provide an opportunity for industrial and end consumers to help keep the lights on while generating additional revenue and making savings on energy costs.”