Transforming Australia’s

For more information, please visit aemo.com.au or contact us at 1300 236 600 energy system or [email protected] Australia’s energy system is transforming faster than anywhere else in the world. 10 February 2020 New generation in geographically diverse locations are producing world-first challenges that need to be solved for a better energy future for Australia.

New challenges Generation capacity About the NEM New generation for the network by NEM region National 2017 2019 Australia has gone from having six to Scale and pace of inverter-based generation connected in electrically Electricity +5,000 km x6 45 grid-scale solar farms in x just 2 years. This is enough to power remote areas of the NEM is presenting NEM TOTAL The NEM is the world’s longest 45 over 1 million homes for over a year. unprecedented technical issues. EXISTING Market (NEM) interconnected energy system. ~54,000 MW A power system +65,000 MW PROPOSED like no other Australia has gone from 36 need The grid’s transformation will World-firstchallenges to in just 2 years. to be solved to ensure secure and require new energy infrastructure 52 wind farms This is enough to power over reliable energy for all Australians. and services to power Australia’s x36 x52 1.3 million homes for over a year. bright future. 2017 2019

EXISTING In 2009 the NEM had 298 registered QLD participants. Today there are ~15,000 MW ~54,000 MW +65,000 MW of new generation 463 registered participants. +18,000 MW of generation capacity wanting to connect. PROPOSED

SA EXISTING ~6,000 MW Why network constraints What AEMO is doing to EXISTING The MW NSW About the West Murray area have been applied restore operational stability +10,000 ~17,000 MW PROPOSED +19,000 MW West Murray The location has attracted investment in inverter- In September 2019, post-fault AEMO continues to work closely with PROPOSED based generation projects due to ideal climate performance was found to the solar generators, their equipment area conditions. cause unsatisfactory suppliers and Network Service Providers voltage fluctuations. (Powercor and TransGrid) to test and A promising location with This threatened power develop solutions that would restore challenges to resolve system security. secure operation requirements. ~1,200 MW ~3,000 MW Broken Hill committed generation projects in projects application phase As the power system operator, Once this is restored, AEMO will work VIC EXISTING AEMO applied network with Network Service Providers to connect ~12,000 MW constraints to maintain as many generators as can be connected securely. +12,000 MW The electrically remote area means it is weakly power system security. PROPOSED connected to the backbone of the grid, and remote Project EnergyConnect Darlington from demand centres. Point VNI West** Two major interconnector projects will deliver critical benefits for Constrained solar farms NSW TAS EXISTING Significant investment infrastructure will be needed the West Murray area and aid with system Solar farms strength gap closure: ~3,000 MW to allow projects to connect and generate at full capacity. This was noted in the draft 2020 Integrated MW • Project EnergyConnect: +4,000 System Plan and previous AEMO publications. PROPOSED VIC interconnector between Dederang and between and New South * Proposed generation includes projects that are: Wales. Committed, Emerging, Maturing, Publicly Announced, • VNI West: interconnector between Upgrades, and Expansions. For more information, Victoria and . please visit AEMO’s Generation Information page. Ballarat ** This is a proposed project and the route is not yet determined.