Integrated Systems Plan: An updated roadmap for Australia’s energy transition.

Jul 03 , 2024

The Australian Energy Market Operator (AEMO) Integrated Systems Plan (ISP) 2024 forecasts an exciting future for the transition of the National Electricity Market to meet Australia’s long-term energy needs and enable a net zero economy by 2050.

The ISP’s optimal development path sets out the needed generation, storage, and network investments to transition Australia to net zero by 2050. Investment of $16 billion in transmission projects identified in the 2024 ISP is expected to save consumers a further $18.5 billion in avoided expenditures while delivering emission reductions valued at $3.3 billion. 

“The energy transition that Australia is undertaking is important for the needs of all businesses and individuals in Australia, as the long-term aim will be to provide cheaper, cleaner and more reliable energy to all parts of our wonderful country,” Rob Fields, Executive Director, Growth Services, at MBB Group said.  

“MBB has a strong history of working with clients across the energy sector in the fields of strategy, development, delivery, and operations. These four fields encompass pre-feasibility and feasibility of business case analysis: procurement and delivery methodology, manufacturing, construction, and commissioning as well as operations and maintenance.” 

Setting up ambitious energy projects for success

MBB are currently involved in all Victorian and Tasmania transmission projects listed as ‘actionable’ or ‘committed’.  In Victoria, this includes Offshore Wind Transmission, Victoria to NSW Interconnector West, Western Renewables Link, the Mortlake Turn-In and the Koorangie Energy Storage System. In Tasmania, the North West Transmission Developments and Marinus Link are underway.  

“Our energy transition has an estimated net present value of $122 billion in the pipeline to 2050,” Fields added.  “More than 5,000km of transmission is to be delivered over the next decade and around 10,000km by 2050, which will double if Australia focuses on exporting green energy. But supply chain risks remain a threat to following this roadmap and transmission cost estimates have increased approximately 30% in real terms over the past two years, meaning MBB is well positioned to support on this rollout. 

“We are committed to sharing our knowledge and expertise to make sure efficiencies are gained by all parties from the outset. This way we can manage costs and ensure the project remains on time and budget through an integrated and collaborative approach with infrastructure planners, network operators, financiers, and their supply chains.” 

The future

Australia’s coal-fired generators are retiring. The shift to renewables is well underway, with renewables accounting for almost 40% of the total electricity delivered through the NEM in 2023.  

Currently, Australia is going through a rapid mix of change from traditional technologies to renewable energy solutions, which should benefit people and the planet in the short, medium, and long-term future.  

Urgent investment, however, is required into renewable energy generation, transmission, and storage so that Australian homes and businesses can continue to receive a secure, reliable, and affordable supply of electricity.  

“MBB’s expertise across energy and complex infrastructure sectors, and insights on all contract and delivery models, enables clear and early identification of risks and opportunities that results in better solutions, superior commercial outcomes and consumer value, and more sustainable benefits for the client, end-user, and communities,” Fields said.  

About AEMO

AEMO was established by the Council of Australian Governments (COAG) on 1 July 2009 to manage the National Electricity Market (NEM) in the eastern and south-eastern states and Australian gas markets. 

In the years following its establishment, AEMO’s responsibilities have progressively grown. This has included adding various gas market functions, and becoming the market and independent power system operator for Western Australia from 2015.  

AEMO’s ownership was – and still is – shared between government and industry, with members representing federal and state governments, as well as generation and production, distribution, retail and resources businesses across Australia. The organisation has always operated on a user-pays cost-recovery basis, and it recovers all operating costs through fees paid by industry participants.

As Australia’s independent system and market operator and system planner, AEMO’s role is to manage the electricity, gas systems and markets across Australia to ensure Australians have access to affordable, secure, and reliable energy.  

AEMO has just released a 25-year roadmap to transition the National Electricity Market (NEM) to net zero by 2050.

For further information on how we can help please contact:

Peter Jones
Executive Director – Southern Region

Katrina Street
Executive Director – Northern Region

Rob Fields
Executive Director – Growth Services
Australia / Asia / Pacific