Solar panel systems and battery storage could save the Federal Government $4 billion, according to the Australian Energy Market Operator.
AEMO Managing Director Audrey Zibelman told 2GB radio’s Ross Greenwood that distributed power resources and energy storage can achieve these additional savings in a “transforming” market.
AEMO’s ‘Integrated System Plan’ report released this week shows investment in transmission rather than generation could save the government up to $2 billion. The $4 billion identified in solar savings would be on top of this.
Australia undergoing an energy transformation
A more robust transmission network would also increase competition, resilience and flexibility in the national energy system, the report noted.
According to Zibelman, Australia’s energy system is “transforming and disrupted”. Rather than relying on one form of power production, today’s system is “one machine with a portfolio of resources” including wind and solar storage batteries.
Household and industry-owned solar PV was also driving down the need for electricity from the grid.
New coal plants can’t compete with renewable energy
New coal plants can’t compete with renewables in terms of building new energy generators, Zibelman added. While existing coal-fired stations are cost competitive, new ones are not.
The former was a resource with high capital and operating costs, the latter a resource with “low operating costs because fuel is free”.
Solar energy systems and storage are disrupting the market as we move into a different kind of power system, she added. The challenge now is to ensure reliability and security as we make the transition from fossil fuels to renewable energy. This also requires hydro and gas to help replace coal.
Clean energy transition includes solar panel systems
AEMO operates and regulates Australia’s energy grid. It controls all power stations on the east coast along all of the state interconnectors.
According to Zibelman, AEMO must also ensure a smooth transition from to renewable energies like solar, wind and hydro.
This also aligns with findings from the recent Australian Competition and Consumer Commission (ACCC) report she told 2GB. The ACCC proposed a series of reforms to reduce prices and simplify the electricity market.
