The first stage of a multi-year plan to maintain system security in a future National Electricity Market (NEM) with a high share of renewable resources, has been announced by the Australian Energy Market Operator (AEMO).
The Renewable Integration Study (RIS) evaluates the technical challenges associated with reliance on high levels of renewable energy and the actions that will have to be taken.
The Study focuses on the period up to 2025 when AEMO forecasts there will be times when as much as 75 per cent of energy could be provided by wind and solar resources.
Managing Director and Chief Executive of AEMO, Audrey Zibelman said the Study set out an action plan that supported the secure transition of the NEM power system.
“It makes clear that today’s operating approaches and market frameworks are becoming less effective as the NEM continues its transformation to world-leading levels of renewable generation,” Ms Zibelman said.
“Australia already has the technical capability to safely operate a power system where three quarters of our energy at times comes from wind and solar energy generation,” she said.
“However, to do so requires changes in our markets and regulatory requirements.”
She said that if this did not happen, AEMO would be required to limit the contribution of wind and solar resources to 50 or 60 per cent of electricity supply at any point in time, even though they were the lowest cost ways of providing electricity.
Ms Zibelman said that based on the learnings contained in the Study, AEMO was recommending that a number of actions be implemented well before 2025.
These included continuing the design and deployment of the Energy Security Board’s Market 2025 reform program and the development of new standards and settings to maximise the potential contribution of distributed solar PV.
Also required would be the construction of required transmission resources identified in the Integrated System Plan.
“The findings of this report have far-reaching implications for the energy sector in Australia now and in the coming years,” Ms Zibelman said.
The Operator’s 75-page Study, stage 1, can be accessed at this PS News link.
