AEMO planning places renewables in pole position in the race to net-zero

“This reaffirms renewables are the key to meeting the energy needs of Australian homes and businesses, and our commitment to achieving net-zero by 2050,” said Clean Energy Council Chief Executive, Kane Thornton.

“Renewables lead the pack in providing the most reliable energy at the lowest cost, right now, and into the future.

“The debates around this are effectively over and can now be placed in the category of unhelpful distractions as the renewables industry gets on with the job of building what is required to secure Australia’s future.”

The Draft 2024 Integrated System Plan (ISP) is a roadmap for the energy transition.

The ISP includes an optimal development path of generation, storage and transmission investments needed to meet the energy needs of homes and businesses as Australia transitions to a net-zero economy by 2050.

The plan highlights the urgency for investment to ensure that Australians can continue to have access to safe, reliable and affordable energy.

Some of the key features of the plan include:

• Building a total of 10,000 km of new and upgraded transmission infrastructure by 2050, of which approximately 25 per cent is under construction, and 50 per cent to be delivered by 2030.
• Earlier need for renewable energy, increasing to 6 GW per year under AEMO’s Step Change scenario during the decade, compared to 4 GW in the 2022 ISP.
• A tripling of large-scale variable renewable generation to 57 GW by 2030, with a further seven-fold increase to 126 GW by 2050.
• Increased need for dispatchable supply, and a shift towards consumer-owned storage, through quadrupling rooftop solar PV capacity to 72 GW by 2050.
• Accelerating the retirement of all coal-fired power stations in the National Electricity Market by 2038, five years earlier than in the 2022 ISP.

“Continued coordination between federal, state and territory governments on calibrating policies to attract and sustain investment will be the cornerstone of the success of every aspect of Australia’s clean energy transformation,” said Thornton.

The 2024 Draft ISP also highlights the continued influence of record demand for clean energy technologies, materials, investment and labour on supply chains, predominantly driven by public incentive programs such as the Biden Administration’s Inflation Reduction Act in the United States, and the European Union’s Green Industrial Plan 2022, among others.

The plan also indicates that a record number of Australians are turning to solar PV to better manage their energy costs and reduce their bills. AEMO aims to build greater consumer trust in successfully connecting home storage systems to the grid, further driving down household energy bills by generating, storing and using their energy supply when it best suits them.

“The success of Australia’s energy transformation will also rely on demonstrating continued resolve in meeting our commitments, and making the case that Australia is the natural home for renewable energy investment in a more competitive global marketplace racing towards net zero,” Thornton said.

The Clean Energy Council will consult with members on the details of the Draft ISP and look forward to working alongside AEMO on the finalisation and implementation of the 2024 ISP.

ENDS

For more information or to arrange an interview, contact:

Liam Straughan
Clean Energy Council Media Officer
+61 409 470 683