Australia’s Energy Future: A Community Approach

Hand placing the final wooden block labeled 'Net Zero' on top of a stack with other blocks displaying green energy and sustainability icons, against a blurred natural background.

The Australian government is moving forward with its plan to rewire the nation, a project that could be quite costly, with land acquisition prices potentially reaching $10,000 per kilometre. Recognising the importance of including everyone in the conversation, there’s a strong push for community involvement.

Last month  discussions at the All Energy conference in Victoria emphasised how crucial it is for local communities to be part of creating new Renewable Energy Zones and updating power transmission systems. The benefits? These projects can bring significant improvements to local areas.

The Australian Energy Market Commission (AEMC) is now making sure that for any new energy project to be approved, it must be communicated clearly to all involved, from government councils to the people who own the land. This means everyone should understand what’s proposed and know their rights in the process.

Here’s what’s new:

  • Information must be easy to understand and readily available.
  • Communication and engagement must be tailored to meet different needs.
  • Everyone should know how they can contribute and that their views will matter.
  • People should have the chance to be involved in energy plans from the start.

At a recent energy conference, Chris Bowen, speaking optimistically, mentioned that a well-designed renewable power system is not only reliable but also essential, especially during tough times. He noted that failing to update our infrastructure could be why Australia might not meet its energy goals. By 2030, Australia aims to get 82% of its energy from renewable sources and cut greenhouse gas emissions by 45% compared to 2005 levels.

However, there are concerns that the government’s current focus on power transmission issues might distract from a broader strategy for renewable energy, which has been somewhat lacking over the past decade. This could be why the Minister for Climate Change and Energy is avoiding tough questions at the upcoming COP28 climate conference in Dubai.

The Australian government’s decision to send Jenny McAllister, the Assistant Minister, instead of the Minister to COP28 has been noticed by many, especially by the Pacific island countries. With those nations key to Australia being announced as the COP31, are watching Australia closely. They want to make sure Australia keeps its promises to address climate change. This interest is shared by other countries, like Turkey, who are also keen on hosting the conference and holding Australia to its climate commitments.

This is a summary article from Edge2020 – read the original article.

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NEW TOOLS FOR AEMO

We all agree having a safe, reliable, and secure National Electricity Market (NEM) is the key deliverable for AEMO. AEMO have flagged that there is a shortfall in the participants able to provide key services to keep the grid stable as the generation mix changes and they are running out of tools to keep the grid stable.

The biggest issue for AEMO and market participants is as synchronous generators such as thermal power stations reduce availability and eventually retire the much-needed system security services such as inertia and voltage control that they provide, drops.

As a result of AEMOs concerns, the Australian Energy Market Commission (AEMC) has developed ways of valuing the much-needed services.

The AEMC has just released a directions paper outlining mechanisms that could provide the system security services to the NEM. The AEMC has also highlighted support for innovative technologies to provide these services.

At this moment in time, AEMO has limited tools to improve system security at times of scarcity apart from using its intervention powers to direct generators online to provide the services. The problem with using its direction powers is that additional costs associated with the directions are passed onto end users and as a result this does not meet the requirement of the National Electricity Objective (NEO) of providing the lowest cost solution and it also distorts the market.

AEMC’s directions paper covers two rule changes proposed by Delta Electricity and Hydro Tasmania. The Delta proposal is to introduce a capacity commitment mechanism to provide system security and reliability services. In Hydro Tasmania’s request they propose to create a market for inertia, voltage control and system strength products.

Both these rule changes will form part of the Energy Security Boards (ESB) ‘post 2025’ market design. AEMO is also working with participants to develop the engineering to meet these challenges. These challenges include a changing market due to an increased reliance on weather dependent generation such as solar and wind and new technologies such as batteries.

The options in the directions paper are about providing a transitional approach as we move to a different generation mix while keeping the cost of the solutions to a minimum over the long-term. Solutions may include a similar process to direction but increasing the transparency of what assets should be online to maintain system security while keeping the costs down. Some of the options available to AEMO could be scheduling assets to provide specific services like voltage control while other would be scheduled for inertia. These arrangements would likely transform into stand-alone services similar to the current FCAS services.

The market is changing at a rapid pace and these extra tools in AEMO’s toolbox should allow the NEM to operate safely and securely for many years into the future.