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Australia’s energy market transformation is accelerating but putting pressure on system security, strength and reliability
Link contains annual market performance report, media release, infographic
· Market change is accelerating. So are the challenges.
· It’s a consumer led revolution.
· The grid’s holding up - but only because AEMO is intervening on almost a daily basis to keep the lights on.
· We need integration of energy and emissions reduction policy.
Australia’s energy sector is cleaner and greener but the speed of structural change is putting growing pressure on power system security and reliability, according to major reports issued today by the Australian Energy Market Commission (AEMC).
The annual market performance review (AMPR) conducted by the AEMC’s expert Reliability Panel and the AEMC’s investigation into intervention mechanisms and system strength show problems experienced by South Australia may start to emerge in other parts of the country.
The power system’s transformation is continuing to accelerate. Consumers are driving strong growth in rooftop PV; there is significant new entry of variable renewable generation, mainly intermittent large-scale wind and solar generation; and the exit of ageing coal generators ahead.
In the face of unprecedented change we see the power system still meeting consumers’ needs but only because the market operator, AEMO, is using the power system’s built-in safety-nets almost on a daily basis to keep the lights on. The system’s emergency mechanisms are working well to help AEMO keep the lights on. However these safety nets will not deliver targeted, least costs solutions to the challenges we are seeing.
These emergency, expensive ‘stop-gap’ measures are not meant to be used all the time.
It is more challenging for AEMO and transmission companies to manage the system in the face of fast-moving renewables penetration especially as consumers adopt rooftop solar in greater numbers.
Everyone needs to work together to fully understand the implications of this change so precise solutions can be targeted to problems. It’s also important for network businesses to comply with new rules that require them to add security to the grid if AEMO declares system shortfalls in specific regions.
Media Prudence Anderson AEMC Communication Director 0404 821 935 or direct line (02) 8296 7817