AEMO 2024 ISP Highlights The Need For Better Coordination & Collaboration To Manage The 'Messy Middle' Of The Energy Transition

AEMO 2024 ISP Highlights The Need For Better Coordination & Collaboration To Manage The ‘Messy Middle’ Of The Energy Transition

Emily Wood | June 26, 2024

Today’s release of the 2024 Integrated System Plan (ISP) from the Australian Energy Market Operator (AEMO) highlights the challenges, risks and opportunities of decarbonising the energy system, along with the urgent need to better manage the ‘messy middle’ of the energy transition that we have entered.

“It is evident that better coordination, more collaboration and a healthy dose of pragmatism is required to ensure we deliver the best possible outcomes for consumers as we move into the far more difficult middle stages of the energy transition over the coming 10 years,” said Chief Executive Officer of the the Energy Users’ Association of Australia (EUAA), Mr Andrew Richards.

“There are many external variables and risks that AEMO need to deal with when developing the ISP. When combined with the difficult task of catering to a broad range of government energy policies, some of which do not always lead us down a least cost pathway, the transition is becoming messy and unpredictable.”

“We congratulate AEMO on the difficult work of preparing the 2024 ISP in these circumstances.”

Noted in the ISP, while wind, solar, batteries and pumped hydro will undoubtedly play a key role, more work still needs to be done to make full use of our distribution networks and capitalise on the extraordinary solar resources on the roofs of Australian household’s.

Once again the ISP also highlights the important role that gas will need to play to fill longer duration gaps in wind and solar generation that we have seen recently. In the past week alone, some of the challenges of the energy transition have been highlighted when low wind and solar radiation in Victoria and NSW, together with reduced output from Victoria’s Longford gas plant, put added pressure on peaking gas generation and Victoria’s gas storages.

“As we can see through the numerous iterations of the ISP over a number of years, it is not an easy task to transform our energy system. There are multiple opportunities, risks and challenges that are becoming apparent as we move further down the net zero path. This highlights the critical need for all governments and the energy industry to work constructively and collaboratively to ensure the best outcome for consumers and host communities.”

“Remember our end goal – a sustainable, reliable and least cost energy system for all consumers,” added Mr Richards.

The EUAA is the peak body representing Australian industrial and commercial energy users. EUAA membership covers a broad cross section of the Australian economy including significant retail, manufacturing and materials processing industries.  Combined EUAA members employ over one million Australians, pay annual energy bills in the many billions of dollars and support the development of a lasting national energy and climate change plan that puts downward pressure on electricity and gas costs.

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Media Contact: Emily Wood 0421 042 121

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