The Australian Energy Market Operator (AEMO) has once again confirmed that renewable energy, supported by batteries and hydro, is the least-cost investment pathway to meet consumer needs through to 2050.
The ISP confirms what we have just heard from the Australian Energy Market Commission (AEMC), renewables are the cheapest cost pathway and delays in transmission are increasing costs.
David McElrea, the Smart Energy Council’s Chief Advocacy Officer, put it simply: “The more we delay, the more we pay.”
“The Smart Energy Council is proud to be supporting an industry that is driving the future of the electricity grid, right across our membership base from large-scale, to transport, to distributed energy,” he said.
“With almost 40% of the coal fleet already retired and the remainder around 40 years of age, the ISP reinforces that coal is exiting the system – with or without policy intervention.”
“Even in the scenario where project delivery is delayed and costs rise by 30%, the modelling shows consumers are still better off continuing the transition rather than slowing down.”
While AEMO refers to renewables being ‘backed up by gas’, the Smart Energy Council notes that the role of gas in our existing and future grid is routinely overstated.
“The role of gas is small and diminishing, its use has halved over the last decade and now generates around 6 per cent of electricity on the East Coast. The ISP shows that trend will continue.”
With 120 GW of utility wind and solar, plus 40 GW of utility storage and hydro expected by 2050, it is critical the government works to reduce delays to projects needed for the transition. The message from the ISP is clear – any delays to the transition costs consumers.
The Smart Energy Council also acknowledges the ISP’s projected 21 per cent reduction in the amount of transmission needed to connect renewable energy projects, revising previous estimates of 7,600kms to 6,000kms.
“That 6,000kms represents just 13% of the existing 44,000km network that currently makes up the NEM.”
The ISP also identifies an expected investment of 87 GW of small-scale solar, and 27 GW of batteries behind-the-meter alone, with initiatives like the Cheaper Home Batteries Program – designed in part by the Smart Energy Council – helping drive take-up.
For interviews and more information, please contact Tim Lamacraft on 0488 972 192.
