The Australian Energy Market Operator (AEMO) has today published two reports that provide valuable information for governments, industry and investors in anticipating and responding to Australia’s future energy needs in the most efficient and cost-effective way.
Launching the reports on behalf of AEMO in Melbourne, Resources and Energy Minister, Martin Ferguson AM MP, said the inaugural National Transmission Network Development Plan and the 2010 Gas Statement of Opportunities are important independent pieces of work that will contribute to the ongoing dialogue around Australia’s future energy mix.
“Australia's energy sector is currently facing a range of challenges, not least the investment challenge to meet increasing demand, replace ageing infrastructure and maintain reliability of supply,” Minister Ferguson said.
“AEMO predicts we’ll need to invest between $40 and $130 billion in generation and transmission investments by 2030 to continue to meet the expectations of consumers.
“The Development Plan and Gas Statement of Opportunities model a range of scenarios that show potential development opportunities in both the electricity and gas sectors.
“In all scenarios demand for energy is growing and gas will play an increasingly major role in Australia's future energy mix.
“Well-planned investment across all aspects of electricity generation and transmission is critical to ensure continued reliability of supply as demand increases.
“AEMO's work will facilitate this investment by identifying trends and where investment will be needed in the future.”
Minister Ferguson also released a further piece of work today, undertaken as part of the Energy White Paper process and used in the development of the National Transmission Network Development Plan and the Gas Statement of Opportunities.
The National Energy Scenarios Modelling examines the sensitivity of electricity generation technologies to long term changes in key factors such as economic growth, population growth, global fuel prices, and climate change policy.
The modelling was managed by AEMO and different aspects of the exercise were undertaken by consultants with expertise in the Australian energy market.
The reports provide publicly available information on the findings and assumptions from long term (2030 and 2050) modelling of Australia’s national energy supply sector for a number of scenarios.
The results reaffirm the need for a price on carbon, alongside the existing Renewable Energy Target, to achieve the transition to a lower carbon economy.
The National Energy Scenarios Modelling is the fourth piece of work published as part of the Government's Energy White Paper process. It builds on the three reports already released:
· The Australian Energy Resource Assessment (AERA), that was released on 1 March 2010;
· The Report of the Prime Minister’s Task Group on Energy Efficiency that was released on 8 October 2010; and
· The Australian Electricity Generation Technology Costs – Reference Case 2010 that was released on 25 November 2010.
The work released today is available at www.aemo.com.au