$15 Million of Government Funding to Help Energy Grid Cope With Renewables

ARENA is delivering the funding to AEMO.

Wind turbines at sunset in Albany, Western Australia, on Feb. 6, 2024. Susan Mortimer/The Epoch Times

The federal government agency managing Australia’s renewable energy transition will provide $15 million (US$9.8 million) to the Australian Energy Market Operator (AEMO).

The funding will help the energy grid cope with a higher share of renewables and reduce reliance on fossil-fuel generators.

The Australian Renewable Energy Agency (ARENA) aims to move Australia towards a largely renewable electricity system both on and off the grid.

Meanwhile, AEMO is in charge of managing electricity and gas systems and markets across the nation so residents have access to “affordable, secure, and reliable” energy.

Data from the AEMO shows penetration of renewables in the national energy market hit a new record of 72.1 percent.

ARENA Chief Executive Officer Darren Miller said transitioning to an electricity system based on wind, solar, and storage presents new challenges they 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,” he said. 

“ARENA is pleased to be working with the market operator to bring forward this important program of work, enabling a grid powered increasingly by renewables.”

Responding to news of the funding, AEMO chief executive officer Daniel Westerman explained it will expediate the power system’s readiness for high renewable operation.

“The engineering roadmap seeks to advance operational capability for a high renewable power system, critical as our ageing coal generation fleet retires,” he said.

“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.”

Different Approaches

The Albanese government is committed to net zero by 2050 and reducing emissions by 43 percent by 2030.

The Labor Party opposes nuclear energy and aims to achieve its goals with 100 percent renewable energy supported by gas.

In contrast, the Coalition are planning to build seven nuclear reactors in Australia if they win the next election.

The Opposition note that no country in the world relies entirely on solar and wind, but 32 operate zero-emissions nuclear plants and 50 are considering it.

The Coalition’s proposed nuclear reactors would be located at coal-fired power stations that have closed or are scheduled to close.

These include the Liddell and Mount Piper power stations in New South Wales, the Loy Yang power stations in Victoria, and the Callide and Tarong Power stations in Queensland.

Small modular reactors would be built at the Northern Power Station in South Australia and the Muja Power Station in Western Australia.