A new interconnector should help the transfer of coal-fired power and renewable energy between NSW and South Australia, but it won’t fix fundamental flaws in the National Electricity Market.
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Australia’s electricity grid faces congestion and power security issues over the next few years as more solar energy capacity is installed at faster rates than previously expected.
That’s according to a report from the Australian Energy Market Commission (AEMC), which has found that 763MW of new large-scale solar capacity was added to the power mix last year.
In order to ensure greater power security as more thermal generation power plants are retired, AEMC, AEMO and the Energy Security Board (ESB) are working on separate frameworks and policy proposals that will concern the ongoing security and reliability of Australia’s National Electricity Market (NEM).
What’s in store for renewable energy in the new Federal Budget?
Renewable solutions have been put on the backburner in the 2021/22 Federal Budget, which has leaned heavily into gas production and emission reduction.
Treasurer Josh Frydenberg splashed the cash in the latest Budget, aiming to undo the damage done by COVID-19 last year. But it seems there was little left in the kitty when it came to investment in renewable projects like wind and solar. Instead, more than $1.8 billion has been tipped into the sector, focusing on new technologies (primarily in gas production) that will reduce emissions.
Minister for Energy and Emissions Reduction Angus Taylor said the Budget would work towards “bolstering our position as a leader” in developing low emissions technologies.