Related article: Labor delivers biggest clean energy Budget in history

Senator McAllister drove the National Energy Performance Strategy and the Consumer Energy Resources Taskforce. These provide a foundation for the new assistant minister to enable solar and electrification for more households, including renters, apartments and low income demographics.

Josh Wilson has been federal member for Fremantle since 2016.

“It’s an honour to have been asked by the Prime Minister to take on the responsibility of serving as the Assistant Minister for Climate Change and Energy, working with Minister Chris Bowen,” he said in a statement.

“There is no area of greater challenge and greater opportunity for Australia, and I relish the chance to work with communities around the country, with innovators and entrepreneurs, with businesses and clean energy advocates and civil society to continue the Albanese government’s sharp focus on the path to net zero, with cheaper energy, cleaner air, and a safe climate.

“Our approach will always involve taking action now and supporting households, including with the cost of living, while laying the foundation for lasting positive change in renewable generation, storage, transmission, transport, and efficiency, including through collaborative work with nations in our region.

Related article: Bowen says replacing coal with nuclear would cost $387b

“For her tireless work in this portfolio, I pay homage to my friend, colleague and now Minister, the Hon Senator Jenny McAllister and extend my congratulations on her new appointment.”

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Having served as chair of ARENA’s board for two previous terms, Punch has overseen significant growth at ARENA, and has been instrumental in the development of key funding programs including Hydrogen Headstart and Community Batteries Round 1.

Related article: Alinga’s Ruby Heard on equity through energy

Ruby Heard and Dr Dean Travers are joining the ARENA board for the first time.

Heard is a descendent of the Jaru people of the Kimberley, an electrical engineer and founding director of Alinga Energy Consulting, providing energy research services with a focus on affordable and sustainable off-grid systems to improve the livelihoods for Indigenous communities, and brings considerable experience in the building services and energy space.

Dr Travers has more than 25 years of experience in the energy sector across global markets in mergers and acquisitions, deal structuring, project development and operations and maintenance. He has worked across Europe, North America, Asia and Australia to develop conventional and renewable energy projects for global energy firms.

ARENA CEO Darren Miller welcomed Heard and Travers to the board, saying their experience and expertise in the energy sector will enhance its existing board and guide ARENA as it facilitates the clean energy transition.

“The ARENA board is gaining some incredible talent in Ms Heard and Dr Travers,” he said.

“ARENA is committed to ensuring First Nations People are at the forefront of the energy transition and Ms Heard’s work as Director of Alinga Energy Consulting and on the Steering Committee of the First Nations Clean Energy Network will provide an invaluable perspective for our work.”

“Dr Travers brings a wealth of experience and knowledge in working on renewable energy projects around the world that will not only help with ARENA funded projects, but also open up global collaboration opportunities,” Mr Miller said.

ARENA’s Board has overall responsibility for the operations of the agency. It is a skills-based decision-making body, responsible for recommending the Agency’s annual general funding strategy to the Minister, setting investment priorities, overseeing the running of the organisation and approving project funding.

Related article: Darren Miller reappointed for third term as ARENA CEO

ARENA also thanks its outgoing board members, Anna Matysek and John Hirjee, who have both served on ARENA’s Board for two terms.

“I’d like to thank Anna and John for their time and contributions to ARENA. Their skills and expertise along the way have helped pave the way forward for us. I wish them well in their next endeavours.” Mr Miller said.

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The move comes after the ACCC warned the east coast could face gas shortages from 2027—a year earlier than initially forecast.

Related article: Gas supply warning clouds reality, analysis says

Australia produces more gas than it needs to meet its domestic supply, but most is contracted for export.

“As ageing coal generation comes offline in coming years, gas will continue to be needed to firm renewable energy generation and as a backup during peak energy use periods,” the minister said in a statement.

Permits will be finalised for Esso and Beach Energy in the Otway and Sorrell Basins, with any discovered gas to support the domestic market.

Exploration permits will also be finalised for Chevron, INPEX, Melbana and Woodside Energy on Australia’s west coast, supporting energy security in Western Australia. In addition, 10 permits will be finalised for carbon capture and storage exploration.

King said the finalisation of offshore exploration permits does not automatically allow new offshore gas production to occur.

“Separate and extensive safety and environmental approvals are required through Australia’s independent National Offshore Petroleum Safety and Environmental Management Authority,” the minister said in a statement.

The news drew ire from environmental groups, with Greenpeace Australia calling the decision “a step backwards”.

The Australia Institute also levelled criticism over the decision.

Principal advisor Mark Ogge said, “This government was elected to take action on climate change and reduce emissions, but they are opening new fossil fuel projects instead.

“Expanding Australia’s gas production in the middle of a climate emergency is not just short-sighted: it treats our Pacific Island neighbours and future generations with contempt.

Related article: Flexible gas backs record demand in NEM during chilly winter

“Sea dumping is a failed technology that is now little more than a delaying tactic for the fossil fuel industry. The fact that these permits are being issued to major fossil fuel companies, so that they can supposedly offset their emissions from other highly polluting projects, is a farce of the highest order.

“This has nothing to do with supporting renewables, it is about producing more gas for export.”

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In a trend consistent with previous years, the end of warmer months saw wholesale electricity prices increase between $65/MWh (SA) and $87/MWh (NSW), and the price in Queensland decrease by $29/MWh compared to the previous quarter.

Related article: Flexible gas backs record demand in NEM during chilly winter

This quarter saw electricity demand and price increases across all regions except for Queensland compared to the same time last year.

AER Board member Jarrod Ball said both seasonal weather patterns and tight market conditions contributed to prices during the quarter.

“While we would expect to see wholesale prices rise as weather in southern states cools and demand rises to keep people warm, the combined impact of cold snaps, planned and unforeseen network outages, combined with rebidding and lower solar and wind output has pushed electricity prices higher than this time last year,” Ball said.

Decreased solar generation as the days get shorter is typical for the second quarter of the year. However, wind generation this quarter contributed 12% of total NEM generation—its lowest share for any quarter since Q2 2021 when it contributed 11% of total generation.

To compensate, higher-priced gas and hydro generation both increased this quarter, with gas-powered generation (GPG) rising by 70% (from 973MW to 1,653MW) compared to the previous quarter and 16% (from 1,420MW) on this time last year.

There were also 19 high price events during the quarter, which led to the cumulative price exceeding the cumulative price threshold in energy for the second time in the history of the NEM. These contributed around $55/MWh to NSW’s price increase from the last quarter.

Related article: AER report shows wholesale energy prices down in 2023

Average forward prices for electricity for the 2025 calendar year increased in all regions, ranging from $24/MWh (QLD) to $41/MWh (SA), indicating an expectation of higher spot prices going forward.

One new wind generator in South Australia entered the market this quarter and will be able to contribute up to 201MW when fully commissioned. An increase in new generation is expected during the rest of 2024 and first half of 2025.

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AEMO CEO Daniel Westerman said, “Colder weather has driven a new record for total electricity demand in the NEM for the June quarter.

Related article: AEMO says renewables “the most efficient path” to net zero

“On the east coast we have seen low temperatures and persistent cold snaps, especially in Victoria, which have driven higher morning peak demands through the tail end of autumn and the first month of winter.

“Extended periods of low wind have led to reduced wind generation output which was down 20% from last winter to a quarterly average of 2,657MW, with wind availability down to their lowest levels since Q2 2017,” he said.

Hydro generation—heavily concentrated in southern states—also generated less during the quarter, averaging 1,607MW—a reduction of 18% from last year and the lowest output for a Q2 since 2017.

“These market conditions highlight the important role that batteries, pumped hydro and flexible gas generation will play as renewable generation becomes more dominant in Australia’s electricity grids,” Westerman said.

“The role of batteries in supporting morning and evening demand peaks became more prominent, with average generation in those periods more than doubling since last year, reflecting the significant increase in battery capacity,” he said.

Quarterly wholesale prices averaged $133/MWh this quarter across the NEM, 23% higher than $108/MWh in Q2 2023. By state, year-on-year prices increased in NSW ($173/MWh), SA ($135/MWh), TAS ($131MWh) and VIC ($127/MWh). Queensland spot prices fell to $101/MWh, helped by increased black coal availability and less outages, leading to increased offers at prices below $0/MWh, particularly during the day.

In May, two days of price volatility in NSW, including major coal plant outages coinciding with planned transmission outages, contributed $45/MWh to quarterly wholesale prices.
East coast wholesale gas prices averaged $13.66 per gigajoule (GJ) for the quarter, lower than the $14.21/GJ in Q2 2023. Gas demand increased marginally, mostly driven by higher demand for gas-fired generation, up 18% from Q2 2023.

The quarter also saw AEMO notify the gas industry of a potential risk or threat to gas supply in parts of the east coast, due to the rapid decline in Iona underground gas storage inventory.

“These meetings enable AEMO to work with the industry to manage gas supplies across the east coast. They are important in the management of gas supply risks and support AEMO in keeping the market fully informed,” Westerman said.

Related article: AEMO’s grid forecast update warns of “energy gaps”

By contrast Western Australia’s Wholesale Electricity Market (WEM) has experienced relatively warmer weather this quarter, resulting in a new Q2 renewable penetration record of 30.8% thanks to a 49MW increase in small-scale solar and a 75MW rise in wind generation.

The higher renewable contribution displaced gas-fired generation, which decreased 134MW during Q2. As a result of higher rooftop solar generation, average operational demand for the quarter fell to 2,000MW, which was 28MW less than the same period in 2023.

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The roadmap’s implementation plan outlines priority reforms through four workstreams—consumers, technology, markets, and power system operations.

Related article: Report: Consumer Energy Resources create jobs and savings

The roadmap provides a national approach to reforms to ensure Australians are able to harness the full potential of CER. If consumer resources are coordinated effectively, they can help lower costs for all consumers by offsetting the need for billions of dollars in grid-scale investment.

The news was welcomed by the Clean Energy Council, which released its own roadmap—Powering Homes, Empowering People—in June.

“The next phase of reforms for Australia’s burgeoning CER sector will require us not only to successfully integrate rooftop solar, batteries and EVs to the grid, but to also educate and share in the benefits with consumers,” Clean Energy Council policy director – distributed energy Con Hristodoulidis said.

“The Clean Energy Council will continue to work with all levels of government and other stakeholders to implement the necessary reforms.”

Energy Consumers Australia CEO Brendan French said, “Energy Consumers Australia congratulates Energy Ministers on the commitments made today to support Australian households and small businesses. We were happy to work closely with Commonwealth, State and Territory officials to develop this package of reforms which will help address longstanding problems in the energy market that affect many consumers, particularly those in vulnerable circumstances.

Related article: AEMO, AusNet partner on consumer energy data exchange

“These new measures will limit the capacity for energy retailers to take advantage of the multiple barriers people face. We’re hopeful that once implemented, the reforms will stop consumers being blindsided by unnecessarily high bills caused by unexpected fees and charges, and prices changing soon after they sign contracts.

“We’re particularly pleased to see that consumers in hardship programs will benefit from the lowest price offered by their retailer and that, at the end of a contract, customers will be moved to the regulated price if that’s lower than the price they’re paying.”

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The Guarantee of Origin scheme will provide the emissions accounting backbone to support the development of Australia’s green industries.

The scheme will issue digital certificates that allow producers, exporters and users to prove where a product was made, and the emissions associated with its production and transport.

Related article: Future Made in Australia Act to drive competitive renewables

The scheme will commence with hydrogen and will then expand to include low carbon liquid fuels like sustainable aviation fuel, green metals like steel and aluminium, and biomethane and biogas.

The certificates will be used to establish eligibility for tax credits under the $6.7 billion Hydrogen Production Tax Credit announced in the 2024/25 Federal Budget and are likely to play a crucial enabling role in the development of other green industries.

The Guarantee of Origin scheme is supported by the Renewable Electricity Guarantee of Origin scheme, which will issue digital certificates proving when, where and how renewable energy was produced. The scheme will replace the RET in 2030 as the framework for certifying renewable electricity.

The government is currently considering the submissions made as part of its consultation into design questions. A final response to that consultation is due to be released shortly.

The government said it was working to finalise the enabling legislation for this reform so it can commence operation in the second half of 2025.

Assistant Minister for Climate Change and Energy  Jenny McAllister said, “The Guarantee of Origin scheme is the most important green industry program you never heard of.

Related article: For a ‘future made in Australia’, we need more innovation and diverse people in science and tech

“As the world decarbonises, it will be increasingly important for businesses to be able to account for the carbon emissions associated with their products.

“Guarantee of Origin is a key to new market opportunities for Australian energy exporters in the race to net-zero.

“The Guarantee of Origin scheme will give Australian companies a competitive advantage by providing government backed certification of the carbon intensity of key green products.”

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Emerging research conducted in partnership with Mott MacDonald shows that some professionals and communities are already managing this transformation and, with additional support and better co-ordination, the pathway towards a net zero workforce in the energy sector is achievable.

Engineers Australia CEO Romilly Madew AO said these early insights were cause for optimism.

“We know that skilled engineers are already taking their extensive experience and translating it into roles in clean energy fields such as renewables. The legacy of coal, oil and gas sector is that professionals who’ve worked across those sectors are now contributing to net zero industries. This might be by moving into new roles in the clean energy sector or applying their skills to boosting sustainable practices in their current industry,” Madew said.

Related article: Aussie engineers find way to prevent power pole-top fires

“While many are managing the transition, employers are providing fresh insights into what else is needed to ensure no-one is left behind and that thriving communities can continue to be a hub for jobs and families into the future.”

Key emerging insights from the research

Employment

Interestingly, the research reveals that employers prioritise mindset and capabilities over specific disciplinary experience, suggesting that skill transferability to the clean energy sector is feasible. Engineers transitioning from thermal to renewable energy roles can leverage existing skills while needing to expand their capabilities in areas such as stakeholder management, community engagement, and negotiation. Of course, there are some roles in the electricity industry, such as grid engineers, which require many years of experience. Transferability between these roles is low, and shortages are high.

Geographic considerations

Building the clean energy industry in communities with existing thermal energy workforces can prevent significant dislocation and encourage retention. Engineers are more likely to remain in the profession if they can find employment locally. Remote work and automation present opportunities for flexible job locations.

Engineering labour force

Recruiting from overseas is becoming less viable due to increasing global demand for engineers. Re-engaging the significant portion of qualified engineers not currently in the workforce, particularly women, older Australians, and migrant engineers already in Australia, is critical. Promoting the environmental benefits of the clean energy industry and addressing salary disparities between the thermal and renewable sectors can attract and retain the engineering team.

Training pathways

Embedding sustainability into all university and vocational engineering courses, rather than offering separate degrees, can prepare engineers for clean energy roles from the outset of their careers. Micro-credentials can facilitate transitions between sectors and demystify industry-specific jargon and standards, boosting confidence and competence.

Related article: Engineers Australia and Energy Networks Australia partner up

Policy recommendations

Governments can play a pivotal role by better defining occupational profiles and updating the classification of occupations to reflect emerging roles in the renewable sector. Policy support is essential to drive innovation, align initiatives across governmental levels, and implement systemic changes that encourage skill transferability and workforce expansion.

Madew said political and industry leaders had a huge opportunity to develop and promote policies which will help ensure skills are being transferred where investment is already occurring.

“Let’s further improve recruitment, retention and re-engagement. Investing in people and showing them the opportunities to deploy their existing skills is key to keeping existing communities thriving. Better training pathways and micro-credentialing will also go a long way towards supporting these career transitions,” she said.

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Minister for Climate Change and Energy, the Hon Chris Bowen MP, took the opportunity to address AHC members and reinforce the Australian Government’s commitment to key policies such as the Future Made in Australia, Hydrogen Headstart and Hydrogen Production Tax Credit.

Related article: Aussie breakthrough to slash green hydrogen costs by 40%

Minister Bowen said consultation was key to the progression of these policies, and encouraged industry to participate in what he said would be a short and sharp consultation process, including the Hydrogen Production Tax Credit consultation paper which was released on Friday and has a two-week submission process.

Australian Hydrogen Council CEO Dr Fiona Simon said she was pleased that Australia was starting to prioritise uses for hydrogen, however, stressed the importance of the Federal Government progressing its recent budget measures quickly.

“The strong industry turnout at our Parliamentary Friends of Hydrogen meeting was a positive signal to the government and friends of Parliament that the hydrogen industry is serious about achieving policy certainty with projects underway that rely on government support,” she said.

“Incentives such as Hydrogen Production Tax Credit and Hydrogen Headstart are absolutely vital. The public interest is in decarbonisation, and without very strong economy-wide price signals to value carbon—and even with them—we need to look at incentives from government to help bridge the gap and get major projects over the line for the 2030s and 2040s.”

The meeting also included a technology showcase headlined by four hydrogen fuel cell vehicles—Hyzon Refuse Truck, Hyundai NEXO, Toyota Mirai and a BMW iX5—demonstrating one of the end use applications for hydrogen.

It also included a showcase of technology from Energys (fuel cell), ENEOS (direct MCH production), Innomotics (motors and drives), Star Scientific (catalyst), Toyota (hydrogen generators and vehicles) and CarbonNet (CCS). Xodus and Coregas also showcased their projects.

Related article: Sparc Hydrogen progresses pilot plant development

The meeting also welcomed strategic stakeholders from Australian Government agencies— ARENA, DCCEEW, DFAT, DISR, DITRDCA—and the Embassies of Japan, Republic of Korea and Federal Republic of Germany, with special guest His Excellency Kazuhiro Suzuki, Japanese Ambassador to Australia contributing valuable insights.

AHC’s focus now turns to critical industry consultations on the Hydrogen Production Tax Incentive, green metals, low carbon fuels, and broader transport decarbonisation whilst continuing to foster Australia’s trading relationships with Japan and Korea.

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Related article: AER accepts Evoenergy pledge for ring-fencing breaches

The AER alleges, and Origin admits, that it breached the Retail Rules on more than 5,000 occasions. The breaches involved:

• Failing to register customers after being informed by either the customer or the relevant distributor that a person at the customer’s premises required life support equipment.
• Failing to inform the relevant distributor that a person at the premises of certain customers required life support equipment.
• Failing to provide customers with information packs notifying them of relevant protections and assistance.
• Improperly deregistering the premises of customers with a person requiring life support equipment without following all the steps required to check whether life support equipment was required. In some cases, Origin disconnected the customer’s energy supply.

As a result, some customers were unregistered and did not have the protections that the life support provisions provide for up to 188 days, while others were disconnected and without power for between one and 66 days. There was no loss of life associated with these breaches.

AER chair Clare Savage said, “The Retail Rules contain the obligations retailers must meet when they are informed of the life support needs of a customer. Failure to comply with these obligations can seriously compromise the health and safety of these vulnerable customers.

“The Australian Energy Regulator has previously published guidance to help retailers and distributors understand their responsibilities when it comes to customers who rely on life support equipment. We will continue to act when obligations to support vulnerable customers are not met.”

A number of these breaches involved third party agents Origin had engaged to assist it to comply with its life support compliance obligations. Origin also admits it failed to establish the policies, systems, and procedures necessary to efficiently and effectively monitor its compliance with the requirements of the Retail Rules.

In addition to bringing these proceedings, the AER has accepted a court enforceable undertaking from Origin in which Origin admitted to an additional 1,973 breaches of the requirement to provide information packs to life support customers.

Related article: Origin strikes deal with govt to delay Eraring closure

Origin has also undertaken to make a $1 million community-based contribution to organisations which assist sections of the community who use life support equipment.

The AER is seeking pecuniary penalties, declarations and costs.

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Related article: ACCC fines Dodo for breaches of electricity code

The consumer watchdog’s report captures some of the longer-term impacts of the volatility in the wholesale electricity market experienced in mid-2022 and examines the billing amounts and effective prices (price per unit of electricity used) faced by residential and small business electricity consumers across New South Wales, South Australia, South East Queensland and Victoria.

To inform this report, the ACCC has collected 15 million electricity bills for regular customers, from eight retailers in New South Wales, Victoria, South East Queensland, and South Australia. This data set contains information on charges, plan types, usage, discounts and solar.

In addition, for the first time the ACCC has collected data on embedded networks from eight electricity retailers, with the additional dataset of 3 million electricity bills covering the vast majority of those embedded networks served by authorised retailers. Both datasets cover the period of July 2022 to September 2023.

Prices increased as a result of the continued effects of the energy market events in 2022. However, increases were largely offset by lower electricity usage due to Australia experiencing its warmest winter on record in 2023. This led to lower usage which meant household electricity bills remained relatively steady (rising 1%) and small business bills decreased by 9% in September 2023.

Government rebates also helped to offset the impact of price increases on customer bills. The report found residential electricity bills in the September 2023 quarter would have been 14% higher without government rebates. South East Queensland residents experienced the greatest offset in their electricity bill, with an average saving of $176 per bill, as almost all customers in the region were eligible for a rebate.

Related article: ACCC asked to review MasterChef ‘renewable gas’ claims

“While electricity bills were relatively stable in the year to September 2023, this was largely due to an unusually mild winter as well as the presence of government rebates. A return to more normal weather conditions may result in consumers receiving higher bills this year as their levels of consumption increase,” ACCC commissioner Anna Brakey said.

The full report is available here.

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Dodo has also provided an enforceable undertaking to the ACCC in which it has admitted it contravened the Code.

Related article: Energy regulator reveals compliance and enforcement targets

“This is the first enforcement action taken by the ACCC in respect of a failure to ensure standing offers comply with the price cap. The price cap is the maximum allowable price for standing offers, and serves an important function to protect standing offer customers. It also acts as a common reference price to compare offers against,” ACCC commissioner Liza Carver said.

“The Electricity Retail Code mandates that retailers issue comprehensive pricing details to consumers, enabling them to compare electricity plans.

“Not only does this information allow consumers to make well-informed choices that best suit their individual needs, but it is also crucial when deciding whether to switch provider for a more affordable plan.

“This is particularly important given the current economic climate in which households continue to face cost of living pressures,” Carver said.

Dodo admitted that between 1 July 2022 and 31 May 2023, the standing offer prices for two of Dodo’s offers exceeded the relevant price cap in force for the 2022 to 2023 financial year, in contravention of the Code.

Dodo also admitted that it sent price change communications to customers on 6 June 2023 and 20 June 2023, which failed to include information required under the Code, and that it did not make a record of how it calculated some matters related to the offered prices as required by the Code.

Related article: AER accepts Evoenergy pledge for ring-fencing breaches

As part of its undertaking, Dodo has committed to cease the conduct and to establish and implement a compliance program to minimise its risk of future breaches of the Code.

“The ACCC will continue to monitor electricity retailers to ensure customers have access to accurate information, and that retailers are meeting their legal obligations, including in respect of the price cap,” Carver said.

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Related article: AER accepts Evoenergy pledge for ring-fencing breaches

The AER reviews its compliance and enforcement priorities every year, and the priorities for 2024-25 extend and update the AER’s priorities from 2023-24, with a focus on:

• Improving outcomes for customers experiencing vulnerability, including by improving retailer hardship policies and access to hardship and payment plan protections.
• Making it easier for consumers to understand their plan and engage in the market by focusing on compliance with billing and pricing information obligations, including the Better Bills Guideline and tariff change notifications.
• Supporting power system security and an efficient wholesale electricity market by focusing on generators’ compliance with offers, dispatch instructions, bidding behaviour obligations and providing accurate and timely information to AEMO.
• Improving market participants’ compliance with performance standards and standards for critical infrastructure.
• Monitoring and enforcing compliance with reporting requirements under the new Gas Market Transparency Measures.

AER chair Clare Savage said the compliance and enforcement priorities would protect energy consumers and keep the energy system stable and secure.

“With consumers facing ongoing cost-of-living challenges as well as the energy system continuing to transition, we received strong feedback from stakeholders that our current priorities remain relevant, and that there is an opportunity to advance work in these areas,” she explained.

“For these reasons we have extended our 2023-24 Compliance and Enforcement Priorities for 12 months and updated them to address important fields including the efficacy of retailer hardship policies, price and tariff change notifications, and network compliance with performance standards.”

Related article: Santos slapped with $2.75M fine by energy regulator

The AER will release its 2023-24 Compliance and Enforcement Annual Report in July, detailing work in the priority areas for the previous 12 months.

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AEMO’s Integrated System Plan (ISP) is a 25-year roadmap for the transition of the National Electricity Market (NEM) power system, outlining essential infrastructure that will meet Australia’s future energy needs.

Related article: Examining the significant issues with LNP’s nuclear plan

The centrepiece of the plan is the optimal development path (ODP)—a mix of replacement grid-scale generation, storage, and transmission, with an annualised capital cost of $122 billion to 2050. The ODP is the least cost path to meet federal and state government energy policies on emissions reductions.

The key messages of the 2024 ISP are consistent with previous editions, which AEMO produces every two years under Australian energy laws.

Those laws also set out what AEMO must address in the ISP. That includes government policies and targets. The ISP does not model nuclear power as it is not government policy and in fact is not permitted by Australia’s current laws.

“Australia’s energy transition is well underway, with renewable energy accounting for 40% of electricity used in the past year,” AEMO CEO Daniel Westerman said.

Consistent with previous reports, the plan identifies almost 10,000km of new transmission lines that are required by 2050 to connect new sources of generation and meet reliability targets at the lowest cost to consumers.

Ten projects, or 2,500km, are already underway, and this plan identifies a further seven projects that should now progress through planning and delivery.

The transmission projects cost $16 billion but are expected to recoup their investment costs and, additionally, save consumers $18.5 billion in avoided energy costs and deliver emissions reductions valued at a further $3.3 billion.

The ISP also said gas would play a crucial energy transition role in back-up electricity generation for sustained periods when renewables are unavailable. Other crucial technologies factored into the roadmap are domestic rooftop solar panels and associated batteries, smart systems and electric vehicles, or what the ISP calls ‘consumer energy resources’.

Home batteries, if well coordinated, can save consumers around $4.1 billion in avoided costs for additional grid-scale investment.

“Consumers are already a driving force in Australia’s energy transition and this is set to continue. If consumer devices like solar panels, batteries and electric vehicles are enabled to actively participate in the energy system, then this will result in lower costs for all consumers,” Westerman said.

The ISP also calls out the challenges and risks to the energy transition. Planned projects are facing delivery challenges, including approval process delays, investment uncertainties, cost pressures, social licence issues, supply chain disruptions, and workforce shortages.

Related article: Fibs about the renewables transition—and the cost of energy

“There is a real risk that replacement generation, storage and transmission may not be available in time when coal plants retire, and this risk must be avoided,” Westerman said.

“This ISP is a clear call to investors, industry and governments for the urgent delivery of generation, storage and transmission to ensure Australian consumers continue to have access to reliable electricity at the lowest cost.”

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