New regulation for a new energy system

Unlocking Australia’s renewable future

Tony Meehan, Executive Manager, Regulation

Australian Clean Energy Summit, 19 July 2017

#ACES2017

New regulation for a new energy system 2 /

32% of

Australia’s

population

34% of energy

consumed in

the NEM

NSW sits between the

2nd and 3rd largest

regions in the NEM

Backbone of the Australian National Electricity System

NSW

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Disruption at the source of energy

Existing large generation

Coal 49%

CCGT 5%

OCGT 14%

Gas other 5%

Solar* 0.58%

Wind 9%

Water 17%

Biomass 1%

Other 0.30%

Coal CCGT OCGT Gas other Solar* Wind Water Biomass Other

NEM existing generation capacity mix

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Technology has disrupted generation before

Pyrmont Power Station (1904 – 1983)

Pyrmont, Sydney

The Star (1995 – )

Pyrmont, Sydney

Image: Maksym Kozlenko

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Metropolitan generation in Sydney and Melbourne

Spencer Street Power Station (1892 – 1982)

Central Melbourne, Melbourne White Bay Power Station (1917 – 1983)

Rozelle, Sydney

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Transmission technology enabled coalfield generation

Hazelwood Power Station

(1964 – 2017)

Latrobe Valley, Vic

Munmorah Power Station

(1967 – 2012)

Central Coast, NSW

Bayswater

(commissioned 1985 – 86)

Hunter Region, NSW Image: Macquarie Generation

Loy Yang B

(commissioned 1996)

Traralgon, Vic Image: Marcus Wong Wongm

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A trajectory towards 100%

renewable generation is feasible,

and the technical challenges

associated with this

transformation can be met in a

way that is affordable for

consumers.

Connection of large-scale renewable generation in areas with abundant renewable resources could

be enabled by extension of the transmission network to those areas.

The transition to large-scale renewable sources of energy will

be enabled by transmission

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Renewable

energy zones to

support the

national electricity

system

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A pathway towards

generation with a low

levelised cost of

energy (LCOE) that

meets emissions

targets.

Development of

transmission

networks to integrate

large-scale renewable

energy whilst ensuring

power system

stability

Mechanisms that

provide ancillary

services at the lowest

possible cost

Renewables Transmission as a

platform Security and stability Consumer focus

Market design

appropriate to the future

energy mix, that

promotes genuine

competition and

protects consumers

when there is

ineffective competition

Key elements

Transition to renewables at lowest cost

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TransGrid’s current renewable connections projects

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The regulation of the National Electricity

System needs to enable the transition to

a renewable energy future.