{"id":46327,"date":"2021-01-05T06:57:24","date_gmt":"2021-01-04T20:27:24","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=46327"},"modified":"2021-01-05T06:57:24","modified_gmt":"2021-01-04T20:27:24","slug":"nem-future-esb-mb1827","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/nem-future-esb-mb1827\/","title":{"rendered":"Australia’s National Electricity Market – A Time For Tough, United Decisions"},"content":{"rendered":"

\"Energy<\/p>\n

Reports just released by the Energy Security Board indicate while progress has been made in the NEM on various fronts, system security and investor confidence leave a lot to be desired.<\/p>\n

Over the next couple of decades, 26-50 gigawatts of new variable large scale renewable energy (VRE) capacity is forecast to come online in Australia. That’s in addition to existing, committed and anticipated projects. Over the same timeframe, approximately 16 GW of thermal generation will retire – 61% of the current coal fleet in the National Electricity Market. Some of these retirements are likely to come sooner than originally anticipated.<\/p>\n

There’s also an expectation 50% of electricity customers are likely to be using some form of distributed energy resources (DER) such as rooftop solar<\/a> by the end of this decade. This increases the security risks associated with falling minimum demand relating to voltage, system strength and inertia.<\/p>\n

There’s a lot going on.<\/p>\n

The ESB’s Post 2025 Market Design Directions paper proposes reforms to address the challenges the NEM faces during this upheaval, detailed in the Health of the National Electricity Market assessment report that was also released this morning.<\/p>\n

“No Longer Fit For Purpose”<\/h2>\n

Energy Security Board Independent Chair Dr Kerry Schott AO says kicking the can down the road is not an option.<\/p>\n

“What we have in place now is no longer fit for purpose for the energy transition and beyond. The time to tackle these problems is now.”<\/p><\/blockquote>\n

Reforms to be progressed address four focus areas of need:<\/p>\n