Introduction to the Australian National Electricity Market with Alex Leemon

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Dec 18, 2024

In this engaging discussion, Alex Leemon, Flexibility Markets Lead at Gridcog, dives into Australia's National Electricity Market (NEM) and its transition towards renewable energy. He sheds light on the disparity in renewable adoption across states and the critical role of AEMO in maintaining system stability. The conversation explores the current challenges including battery capacity growth, the impact of rooftop solar on grid dynamics, and the ambitious goal of achieving 82% renewable energy by 2030 amidst market volatility.

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INSIGHT

Unique NEM Structure

The Australian National Electricity Market (NEM) is an unusual energy-only market.
It uses 5-minute dispatch and settlement, unlike most global markets.

INSIGHT

State-Managed Energy

Australian energy policy is managed by individual states, not the federal government.
This results in a patchwork of policies rather than a unified national strategy.

INSIGHT

Clean Energy Goals

Australia aims for net-zero emissions by 2050 and 82% renewables by 2030.
The country is currently not on track to meet the 2030 target.

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The National Electricity System or NEM, is Australia’s largest energy market and one of the largest interconnected electricity systems in the world, delivering around 80% of all electricity consumption in Australia. As Australia transitions toward a renewable emission-free system, the market must adapt to changes in electricity generation and emerging technologies. This episode takes a look at the state of renewable penetration in Australia, an overview of the largest market in the country, what the current state of battery buildout looks like, and the challenges facing the system.

In our first Australian market focused episode, Alex Leemon joins Wendel Hortop. Throughout the conversation, they discuss:

The differences in renewable adoption across individual states in Australia.
Overview of the National Electricity Market (NEM) and Australias other grids, as well as the Australian Energy Market Operators (AEMO) role in managing system stability.
A look at the existing 2.1GW installed battery capacity in the NEM and what the future pipeline looks like.
Challenges facing the country including, constraints, congestion and minimum system demand challenges due to rooftop solar adoption.
How recent market events are shaping AEMO’s actions to help maintain system reliability during peak demand.

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