AEMO releases 2020 Integrated System Plan

11 August 2020

The Australian Energy Market Operator (AEMO) has today released its 2020 Integrated System Plan (ISP).

The 2020 ISP has identified a number of market development opportunities and transmission investments in the National Electricity Market (NEM) that are likely to be required to ensure grid reliability and security over the next two decades.

Minister for Energy and Emissions Reduction Angus Taylor said the ISP provided a number of recommendations the Government is already working on to address system challenges currently facing the NEM.

“The Government has a clear priority to deliver reliable, secure and affordable power and is backing new generation, transmission and storage projects to ensure system strength now and into the future,” said Minister Taylor.

The Morrison Government is supporting a number of projects identified in the ISP including Hume Link and Marinus Link.

The Government is also continuing positive discussions with the Victorian and South Australian Government’s on their actionable ISP projects.

Minister Taylor said that while transmission is likely to be an important component of the future electricity system, any investment in the grid must make economic sense.

“Any transmission project that is developed must provide value to consumers,” Minister Taylor said.

“It is critical to avoid over investment and ‘gold plating’ of the network, because it is consumers who have to pay for this as part of their electricity bills.

“As we recover from COVID-19 and Australians are already worried about energy consumption while they spend more time at home, the last thing we want to do is burden them with more unnecessary costs.

“The Government will continue working with its state colleagues to progress transmission projects that offer value for money.”

AEMO has also identified that the future system will require significant investment in new flexible dispatchable resources in order to firm variable renewables.

Dispatchable generation has a critical role to play in our energy mix and the Government will continue support investment through projects like Snowy 2.0 and programs like the Underwriting New Generation Investment program which will help ensure that power is available when it is needed and it is affordable.

The Government also strongly believes gas will play an important role in balancing the NEM and complement the record levels of renewable energy generation entering the market.

In addition to identifying a number of recommended transmission projects, the 2020 ISP also considers future development opportunities in the NEM, including those related to power system services, distributed energy resources, and variable renewable energy.

The Government is committed to keeping the lights on in Australian homes and businesses, and driving down the cost of energy for consumers. As Australia recovers from COVID-19 affordable, reliable power will be critical to grow the economy and create new jobs.




Source:  Australian Government -

Date of Original:  30 July 2020

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