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Roadmap to net-zero released

Roadmap net-zero

The Australian Energy Market Operator (AEMO) has released a 25-year roadmap to transition the National Electricity Market (NEM) to net zero by 2050.

The integrated system plan (ISP) confirmed that renewable energy backed up by gas-powered generation is the lowest-cost way to supply electricity as Australia transitions to net zero.

This is also driven by the closure of Australia’s remaining coal-fired power stations. Since 2012, ten large coal-fired power stations have closed and the ISP projects that 90 per cent of today’s capacity will be closed by 2035, and all before 2040.

“The ISP is a roadmap to navigate Australia’s power system through the energy transition, providing Australians with reliable electricity at the lowest cost,” AEMO chief executive officer Daniel Westerman said.

“A record number of stakeholders have contributed to identifying the most efficient development path of generation, storage and transmission investments, critical to meet consumer energy needs as Australia transitions to a net zero economy by 2050.”

Australian Energy Producers chief executive Samantha McCulloch said the ISP is a reminder that governments should act with urgency to ensure investment in new gas supply.

“The ISP makes clear that gas will play an increasingly important role in keeping the lights on for Australian households and businesses,” McCulloch said.

“It also adds to repeated warnings from AEMO, the Australian Competition and Consumer Commission and other independent experts about the need for investment in new gas supply to prevent the structural shortfalls that are forecast from 2028.”

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