A new report from the Australian Energy Market Operator (AEMO) highlights that Australia’s largest grid can rapidly transition to renewable energy, with modelling showing coal can be replaced with no need for any new gas-fired generation.
AEMO’s 2020 Integrated System Plan (ISP) provides an actionable roadmap for eastern Australia’s power system. The ISP draws on an extensive 18-month consultation program to develop a blueprint that maximises consumer benefits through a transition period of great complexity and uncertainty.
The 2020 ISP is a whole-of-system plan that efficiently achieves power system needs through that transformational period, in the long-term interests of the consumers of electricity. It serves the regulatory purpose of identifying actionable and future ISP projects, as well as the broader purposes of informing market participants, investors, policy decision-makers and consumers.
The 2020 ISP shows a clear pathway for a rapid transition to 90 per cent renewable energy in the 2030s.
Climate Council senior researcher Tim Baxter said the report shows that renewable energy is Australia’s best option for clean, cheap and reliable power.
“The market operator has made clear that the renewable energy industry, in the world’s sunniest and windiest inhabited continent, can power Australian homes, businesses and heavy industry. Wind and solar backed by storage are now the cheapest form of new generation in Australia, which means lower prices for everyone,” he said.
Climate Council chief executive Amanda McKenzie said AEMO’s report shows that the current push for gas expansion from the National COVID-19 Coordination Commission is unnecessary and undesirable.
“We can transition to a renewable-powered energy grid without the need for any new gas. New gas is expensive, polluting and a poor public investment,” she commented.
“Our recently released Clean Jobs Plan shows we can create 15,000 jobs in renewable energy, while setting Australia up for the future and tackling climate change. Clean energy is a no brainer.”
“The report also shows that despite gas industry claims, an ever-deeper penetration of renewable energy doesn’t rely on growth in gas. Those scenarios where wind and solar provide more of Australia’s energy needs see the lowest need for all fossil fuels, including gas,” McKenzie concluded.
