AEMO report point to low-carbon electricity future for Victoria

The Australian Energy Market Operator (AEMO) has released its Annual Planning Report for the Victorian electricity transmission network, finding that the Victorian power system is in transition and identifying actions needed to meet future reliability and security needs as the state transitions to a low-carbon future.

The report investigated the impacts of four main trends:

  • Aging transmission infrastructure

  • Minimum grid demand expected to halve in Victoria over the next decade, largely as a result of rooftop solar photovoltaic installation and improvements in energy efficiency

  • Withdrawal of coal-fired generation

  • Reducing system strength

The report noted that the Victorian Renewable Energy Target (VRET8 ) is “incentivising mass deployment of new large-scale renewable generation to meet the 40% renewables target by 2025”.

“This represents the most rapid rate of new generation connection the Victorian power system has experienced to date, and a major relocation of energy production in the Victorian network (from Latrobe Valley to western Victoria).”

The report outlined AEMO's strategies to:

  • Increase network capacity to transport renewable generation from wind and solar resource-rich areas to demand centres within Victoria.

  • Improve interconnection so excess renewable generation can be shared between states.

  • Maximise the benefits realisable from demand response and DER.

AEMO is responsible for operation the National Electricity Market, the interconnected power system in Australia’s eastern and south-eastern seaboard.

The report can be found here.

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