Recent media commentary that AEMO’s Integrated System Plan (ISP) does not include transmission and storage, as well as generation costs associated with providing electricity to Australian customers is wrong.
The ISP is a ‘whole of system plan’ based on rigorous economic modelling and engineering analysis. It models:
- the cost of generation, including capital and operating costs;
- fuel prices, including gas and coal price forecasts;
- the cost of different types and duration of storage - including batteries and pumped hydro storage systems; and
- the cost of transmission investments.
The plan looks at the generation mix into the future, and includes transmission and storage needed to keep the lights on.
The 2022 ISP was published after involvement from over 1,500 stakeholders through 31 forums and webinars, 198 written submissions, and continuous dialogue on every aspect of the report.
The ISP demonstrates that new renewables with new transmission, firmed with hydro, batteries and gas – is the lowest cost way to supply electricity to Australian homes and businesses as coal fired generation retires.
The ISP does not model technologies that are not allowable under existing laws, and this includes nuclear generation. However, AEMO and CSIRO release an annual report (GenCost) that models all available forms of generations including nuclear. This shows that nuclear generation is higher cost and has a longer lead time than renewables backed by storage and transmission.
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