AEMO Electricity Statement of Opportunity report affirms looming energy shortfalls

Shadow Minister for Energy Dr Steve Thomas says today’s release by the Australian Energy Market Operator (AEMO) of the Western Energy Market Electricity Statement of Opportunities (WEM ESOO) for the Western Australian energy system is a wakeup call for the Cook Government and reinforces the position the Opposition has taken on the state’s energy supply.

“The latest review of our state’s electricity supply should be ringing alarm bells for the Government with impending shortfalls of generation and distribution noted in the report,” Dr Thomas said.

“This simply reinforces the message the Opposition has been giving for over two years - the existing Cook Government transition plan will not work without significant additional investment.

“We need a transition that keeps the lights on and can be delivered at a cost that energy users including households and businesses can afford, but the Government looks to be failing that test.

“The Government’s transition plan will not keep the lights on and air conditioners running as we ultimately shift to a low emissions future, and under the current plan the Government is likely to significantly drive up the cost of power for consumers.

The AEMO statement of market opportunities forecasts:

“with peak demand continuing to grow and extend into the night , additional supply that is available late into the evening will be required.

Additional longer duration (six-hour plus) battery storage will help, but alone will be unable to meet forecast growth in these sustained peaks without complementing them with additional energy producing capacity (from solar farms, wind farms or gas generators) to sufficiently top them up.”

Of particular concern is the impending energy shortfall AEMO has identified in 2027:

“In 2027-28, following the closure of more coal-fired generation, more capacity will need to be procured under the RCM to avert energy shortfalls that are otherwise forecast to become more prevalent. While there is substantial continued interest in battery storage to help maintain reliable supply, investment in storage alone will not suffice. At least 110 MW of new generation sources such as gas, wind and solar generation will be required”

“Even the market operator now acknowledges that more energy will be required at a time the Government is closing down 320MW from state run coal generators and is doing its best to close another 434MW from the privately owned coal generator in Collie” Dr Thomas said.