All new Australian power generation to be renewables

• 10 years ago (2013-12-17)
• Junior Isles

Europe 1089 Renewables 776

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A new report from the Australian Energy Market Operator (AEMO) has revealed that all new power generation in Australia until 2020 is expected to be renewables based.

The AEMO's National Transmission Network Development Plan 2013 states that the majority of new capacity added until 2020 will be wind, 84 per cent, followed by large-scale solar PV, 13 per cent, and biomass, 3 per cent.

"This includes 168 MW of new wind generation that has recently come online in Tasmania, and a further 131 MW in Victoria, 270 MW in South Australia, and 386 MW in New South Wales committed to come online from 2014–15. AEMO is aware of close to 15 800 MW of proposed wind generation projects," the report says.

The report notes that there is currently an oversupply of generation capacity in the National Electricity Market, leading to the most polluting fossil fuels increasingly being retired in the run up to 2020.

"NTNDP modelling estimates a reduction of 3700 MW in coal-fired generation capacity to 2020. This is approximately 14 per cent of the total current coal-fired installed generation capacity," AEMO estimates.

Without a carbon price in place, the AEMO’s coal reduction estimate falls to around 3100 MW, or 12 per cent of coal-fired generation capacity.

AEMO’s analysis also sees "coal continuing to dominate over the 25-year outlook period”. It notes that “remaining coal-fired generation increases output beyond 2020", and no carbon price would see the dirtiest brown coal retained for longer.