By Celine Lai
RenewEconomy reports that AEMO, the Australian Energy Market Operator, may abandon plans to model a ‘gas led recovery’ scenario as part of its 2022 Integrated System Plan. This is after a proposal to model the Morrison government’s gas market ambitions vision was widely panned by key energy market stakeholders as being unrealistic.
For the full article about AEMO by RenewEconomy, click here.
The Morrison government’s plan assumed that future gas prices would be lower than AEMO’s projections otherwise suggest, and assumed that the cost of energy storage technologies (Carbon Capture Storage) would fall at a faster rate than is currently being achieved.
But there is no evidence that the costs of gas generation or the costs of CCS would fall.
Research group, the Climate Council, told AEMO that it was not realistic to assume that gas prices would simply fall and remain lower over the next two decades, and that historical volatility in gas prices must be taken into account.
The proposed ‘gas led’ scenario was not received well by energy market participants consulted by AEMO, with at least one major energy market participant questioning whether the ‘gas led’ scenario was even plausible.
Information such as this should influence the Australian Government’s wrong-footed vision for a gas-fired recovery for Australia’s economy.
The CSIRO GenCost report for 2020/21 shows that wind and solar are now by far the cheapest sources of energy.
Beyond Zero Emissions has an “Electrifying Industry Plan” that shows how manufacturers can generate heat differently, through the smart use of renewable electricity. By electrifying the industry, Australian can eliminate up to 8% of national emissions.
Right now the Department of Industry, Science and Energy Resources is asking for public submissions for the Australian Government’s “gas-fired recovery”, but gas emits methane which is 80 times worse than carbon dioxide when first emitted.
You can put in a submission to the Department of Industry, Science and Energy Resources to ask for funds to be put into a renewable-energy led recovery.
For more information on how to lodge a submission see our BLOG article: Government Enquiries – The importance of making a submission