[Full research from our National Energy Emissions Audit here]

AEMO’s modelling results show that, with efficient planning of and investment in the most efficient mix of network services, it will be quite possible to ensure that the electricity supply system of the NEM remains secure and reliable, with much larger emission reductions, and much higher shares of renewable generation in the supply mix, than envisaged in the design of the NEG, and do so at lower total cost.

AEMO’s modelling framework, including as it does a complete array of system augmentation options to deliver security and reliability, also ensures that, for any given level of renewable generation, total system costs will be lower than those of an approach, such as the NEG, which restricts augmentation to a limited choice of augmentation options. Hence AEMO’s system optimisation approach will deliver lower wholesale prices than the NEG.