The Australian Energy Regulator (AER) has released its annual State of the energy market report, covering Australia’s wholesale electricity and gas markets, the transmission and distribution networks, and energy retail markets.
The AER’s flagship State of the energy market report has, for more than a decade, provided a clear, impartial and comprehensive view of energy markets from all angles – wholesale electricity and gas markets, the transmission and distribution networks, energy retail markets and consumer experiences.
This year’s report provides an accessible review of energy market activity in eastern and southern Australia over 2021 and the first half of 2022 and is written in the context of recent major developments in the energy landscape.
This year, for the first time, the report is being released alongside the Energy Security Board’s (ESB) Health of the National Electricity Market report.
AER Chair, Clare Savage, said the reports should help readers to understand the market as it is now and the challenges we face as our energy markets transition.
Energy Networks Australia has welcomed the two reports, with the company’s acting Chief Executive Officer Tamatha Smith saying the ESB’s Health of the NEM and AER’s State of the Energy Market reports highlighted the importance of energy networks in delivering customers a secure, reliable and affordable transition to renewables.
“Australia’s energy distribution and transmission networks are the most stable part of the supply chain and are essential to delivering our nation’s transition to net zero emissions,” Ms Smith said.
“Consistent, stable policy and regulation frameworks are critical to support networks making the investments necessary to deliver new transmission, to enable more customer solar and storage connections and ensure the grid is more resilient to climate change impacts.”
Transgrid CEO, Brett Redman, said the reports indicated an urgent need for action.
“We must act now to accelerate the timeline for when renewables can deliver cheaper, cleaner and more reliable energy to homes and businesses. Transgrid is building the transmission super-highway which will transform the energy supply for millions of Australians,” Mr Redman said.
“The expansion of our grid is essential to underwrite energy security. We are building the infrastructure to enable the integration of existing and future wind, solar and hydro power.
“Our transmission projects EnergyConnect, HumeLink and VNI West will get renewable energy to market, filling the gap left as coal-fired generators become unreliable and retire.
“Building now to facilitate the connection of new renewable generation and storage is the only acceptable path forward for Australia’s energy consumers, who will reap the rewards of a rapid acceleration for generations to come.
“It is imperative Transgrid builds new transmission now, to avoid paying much more for this critical infrastructure later.”
