Following our latest
ISP progress update to stakeholders, AEMO has been working to incorporate that
feedback from our consultation program into modelling for the Final 2020 ISP.
During our consultation on the Draft 2020 ISP
there was significant interest in Renewable Energy Zones (REZs). While AEMO
hosted a stakeholder
webinar on REZs in August 2019, this update aims to provide further clarity
on REZs, including how they are created and selected, and how they progress
through the development stages.
The below diagram outlines the current process. It is
important to note the distinction between the network planning activities,
carried out by AEMO, the other market bodies and the Transmission Network
Service Providers (TNSPs), and the generation and storage development projects,
which are carried out by private developers.
The purpose of the ISP considering REZs is to better
integrate and coordinate the development of the large amounts of renewable
energy and storage projected by the ISP with the development of the rest of the
grid and power system.
The ISP identifies multiple potential REZ locations and
ranks them according to their optimal timing within the plan. This is
determined by analysis which considers developer interest, resource quality,
network characteristics, land cover and suitability, demand matching and
population density. Any potential REZ locations that are identified within the
overall integrated plan as requiring action in the coming 2 years will be
designated as Actionable ISP Projects and progress through regulatory approval
(the Renewable Investment Test – Transmission)
At times, governments or other private parties may wish to
accelerate development of the network components of a REZ that are not
currently actionable under the ISP (but are expected to become actionable in
the future).
The Energy Security Board (ESB), together with the other
market bodies including AEMO, is currently working on a new set of rules (the
Interim REZ Framework), which will outline potential funding mechanisms for REZ
development in the period prior to finalisation of the CoGaTI review. In this
case the process may differ from that shown in the diagram. In the coming
weeks, the ESB is planning to issue further detail of this process, including
opportunities for stakeholder consultation, along with the potential addition
of a REZ Design Report stage.
Further information on the ESB process can be found
here.
For all the latest news,
insights and analysis from the Australian energy industry
subscribe to our fortnightly newsletter and
download the Energy Live app on Apple or Android.