Transition Blueprint Highlights Need to Manage Affordability 

Affordability remains the key to ensuring public confidence and ongoing community support for the energy transition, according to the peak body for energy generators and retailers, the Australian Energy Council (AEC). 

The AEC’s CEO, Louisa Kinnear, said “the sheer scale and pace of investment and generation build needed to deliver the Australian Energy Market Operator’s (AEMO) latest blueprint and meet government ambitions is massive.  

“Even under a constrained development scenario the draft Integrated System Plan (ISP) points to the need to deliver four times more capacity of large-scale solar and wind than we are currently installing annually.  

“That build rate is lower than required to achieve the ISP’s optimal development path. 

“The draft ISP highlights we are now in the difficult delivery phase of the energy transition.  

“We will need to stay open to managing the pace and coordination of the energy transition to ensure costs are kept as low as possible.” 

Ms Kinnear said AEMO’s latest assessment reinforces the important role Consumer Energy Resources (CER) can play in helping reduce system costs. 

“Incentivising and rewarding households to participate in retailer-led Virtual Power Plants (VPPs) and other innovations to help them get the most from their solar, battery and electric vehicle investments will be critical to delivering the energy transition and improving affordability. 

“Consumer Energy Resources cannot be underestimated. They offer the opportunity to avoid costs for all energy users with proper coordination and the optimisation of the existing distribution network, the poles and wires, to unlock more CER. 

“The ISP points to potential system savings of more than $7 billion. 

“Retailers are already working with customers to maximise the benefits of their rooftop solar, batteries and EVs and we expect to see this cooperation accelerate with benefits for all energy users. 

“The ISP also points to the critically important backup role of flexible gas generation for power system reliability and security. 

“We now need to consider how best to support timely and necessary investment in new gas plant, gas supplies and support infrastructure.” 

Ms Kinnear said the AEC was keen to work collaboratively with Federal and state governments and market bodies to ensure that the policy and market settings give us the best chance at ensuring affordable and reliable energy supply is accessible by all and the transition delivered.  

About the Australian Energy Council 

The Australian Energy Council is the peak industry body for electricity and downstream natural gas businesses operating in the competitive wholesale and retail energy markets. AEC members generate and sell energy to 10 million homes and businesses and are major investors in renewable energy generation. The AEC supports reaching net-zero by 2050 and is committed to delivering the energy transition for the benefit of consumers.