Record Renewable Output Lowers Costs, Emissions – Australian Energy Market Operator

According to the Australian Energy Market Operator (AEMO), the country witnessed a significant increase in its renewable energy production in the quarter that ended in March. As a result, energy costs decreased, carbon emissions hit record lows, and there was a shift away from power generated by coal and gas. This surge in renewable energy output is a positive development for Australia.

AEMO reported that in the first quarter, the National Electricity Market (NEM) achieved a new milestone with renewable energy supplying a record-breaking 66 per cent. This marks a 4.4 per cent increase from the previous high and a corresponding drop in contributions from coal and gas. Notably, gas-fired power hit its lowest level since 2005. As a result of this shift, total NEM emissions also hit their lowest levels for the first quarter, decreasing by 5.1 per cent.

Less than a year after the Labor Party took power, promising to support clean energy initiatives and investing A$20 billion ($13.3 billion) to modernize and rebuild the national electricity network, the country has achieved a new renewable energy record. The goal is to reduce carbon emissions by 43 per cent by 2030 and achieve net-zero emissions by 2050.

The latest quarterly update from the Australian Energy Market Operator (AEMO) also highlights the need for further investment in transmission infrastructure to connect additional wind and solar farms to the national grid, according to the CEO Daniel Westerman. These insights underscore the importance of investing in critical transmission infrastructure to distribute low-cost, low-emission renewable energy to consumers.

The National Electricity Market (NEM) covers all regions of Australia except Western Australia and the Northern Territory. According to the Australian Energy Market Operator (AEMO) report, the easing of La Nina conditions, which usually brings more rain, along with a mild southern hemisphere summer led to a reduction in wholesale electricity prices to typical historic levels.

The NEM’s wholesale spot prices dropped from A$93/MWh and A$216/MWh in the previous quarters to an average of A$83/MWh. This report was published on the same day that Australia retired one of its oldest coal-fired power stations, the Liddell power station. AGL Energy Ltd, the country’s largest power producer, has decided to shut it down after over 50 years of operations and plans to convert the site into a renewable energy hub. The company also intends to construct a 500 MW grid-scale battery at the location. (Note: $1 = 1.5074 Australian dollars)