Australia’s energy system is undergoing unprecedented transformation. Evidence of these radical transformations can be seen in the portfolio of supply resources in the National Electricity Market (NEM) over the last decade. Since 2014, new supply resources entering the NEM have been predominantly renewables.
AEMO’s Electricity Statement of Opportunities (ESOO) modelling shows reserves have reduced to the extent that there is a heightened risk of significant unserved energy (USE) over the next ten years, compared with recent levels.
Targeted actions, such as the pursuit of 1000 megawatts (MW) of strategic reserves across Victoria and South Australia, as well as through an innovative program of demand response with ARENA, are necessary to provide additional firming capability to reduce risks of supply interruptions.
AEMO is indifferent to what fuels or technology resources are utilised. Firming capability can be dispatched to maintain balance on the power grid, and can include generation on the grid, storage, demand resources behind the meter, flexible demand, or flexible network capability.