ARENA boosts NEM’s renewable transition with $15 million support
The funding is part of efforts to advance AEMO's Engineering Roadmap, a plan designed to prepare the NEM for a future dominated by renewable energy.
The Australian Renewable Energy Agency (ARENA) has announced a $15 million funding package to assist the Australian Energy Market Operator (AEMO) in fast-tracking the integration of renewable energy within the National Electricity Market (NEM).
The support from ARENA will enable AEMO to focus on three key areas:
First, it will help AEMO get ready for upcoming changes in the power system over the next two years. This includes reducing the need for fossil-fuel generators to maintain grid stability as more renewable energy comes online.
Second, the funding will support the creation of governance frameworks, systems, and processes to manage the increasing uptake of rooftop solar, batteries, and electric vehicles by consumers. These foundational elements are essential for ensuring that the transition to renewable energy is well-coordinated and effective.
Lastly, the roadmap will provide investors with long-term insights into the emerging needs of the power system. By understanding these future requirements, investors can better identify opportunities for different technologies to meet the evolving demands of the grid.
ARENA CEO Darren Miller explains. "Transitioning to an electricity system based predominantly on wind, solar and storage presents new challenges that we need to be prepared to manage. With adequate planning, AEMO can play a key role in managing the transition as seamlessly as possible, while ensuring we get the most out of our renewable assets."
The Engineering Roadmap is designed to anticipate and address the technical challenges that come with a high level of renewable energy in the grid. As more coal-fired power stations retire, the roadmap aims to ensure that the NEM can operate securely and reliably with a higher share of renewable energy. AEMO data from 2023 shows that renewable energy reached a new record of 72.1% instantaneous penetration in the NEM, highlighting the rapid pace of change in the energy mix.
AEMO CEO Daniel Westerman said that the ARENA funding would help speed up the readiness of the power system for a high-renewable environment. He added, "This will in turn help make efficient use of available renewable resources, alleviate future system security management challenges, and reduce future reliance on fossil-fuel generation."
This initiative is part of broader efforts to ensure that Australia’s electricity system can adapt to and benefit from the growing share of renewable energy. By providing timely support, ARENA is helping to remove barriers to the increasing reliance on renewable electricity, paving the way for a more sustainable and reliable energy future.
