AEMO Reports Gas-Backed Renewable Energy as the Most Cost-Effective Power Source
In the 2024 Integrated System Plan, AEMO proposed that 82 percent of electricity be supplied by renewable energy sources.
The Australian Energy Market Operator (AEMO) considers renewable energy backed up by gas to be the most affordable way to provide power to homes as the country prepares to meet its net zero goals in line with the Paris Climate Agreement.
Minister for Climate Change and Energy Chris Bowen said the AEMO supports the government’s drive towards a reliable renewable energy plan in the country.
“The Albanese government’s reliable renewables plan is the only plan supported by experts to deliver the clean, cheap, reliable, and resilient energy system that Australians deserve,” Mr. Bowen said.
“AEMO tested 1,000 scenarios to identify the lowest-cost plan that would also meet our growing electricity needs and keep the grid reliable between now and 2050.”
He added that having a different energy mix meant Australians would miss out on up to $22 billion in benefits.
The agency also estimated that the total cost of the roll-out for utility-scale generation, storage, firming, and transmission infrastructure has a present value of $122 billion.
The AEMO report also said that Australia needs more than 10,000 kilometres of new transmission lines by 2050 which will cost $16 billion or 13 percent of the total cost mentioned above.
Unreasonable, Unachieveable Target: Think Tank
However, the Sydney-based think tank, Center for Independent Studies (CIS), said that AEMO’s proposal is unreasonable and unattainable.
