AMEO Raises Concerns About Reliability Risks During Transition to Net Zero
Energy experts are urging AMEO to ramp up renewable investment, as highlighted in the latest National Electricity Market report by the Australia Energy Market Operator (AMEO). The report flags increased reliability risks in power grids for New South Wales, Victoria, and South Australia due to rising demand, delays in battery projects, mothballed generators, and transmission limitations in each state.
AMEO is calling for tenders for Interim Reliability Reserves (IRR) to support NSW and Victoria in minimizing risks over the upcoming summer, despite concerns that consumers may not be willing to pay more for this. The report also emphasizes the need for increased investment in renewable infrastructure by federal and state governments.
Johanna Bowyer, Lead Australian Electricity Financial Analyst at the Institute for Energy Economics and Financial Analysis (IEEFA), emphasized the importance of installing new energy projects quickly to maintain reliability. AEMO’s projection shows an increase in electricity consumption across different states, with Queensland expected to see the highest growth.
However, the possible retirement of the Eraring Power Station could pose reliability risks in NSW, as noted in the report. The government’s “Future Made in Australia” package is poised to transform the country into a renewable energy superpower, aiming to address these challenges. Despite concerns raised by some experts about the reliability of focusing solely on renewables, the push for accelerated transition remains a key priority to ensure a reliable and sustainable energy future.
