Aemo Energy Update August 2016

AUGUST 2016

IN MEMORY OF OUR FOUNDING CEO – MATT ZEMA P3 STRATEGIC, EFFICIENT INVESTMENT REQUIRED TO SUPPORT AUSTRALIA’S ENERGY TRANSFORMATION P7 UPDATE ON AEMO’S FUTURE POWER SYSTEM SECURITY PROGRAM P10 Energy Update August 2016

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UPDATE FROM ACTING CHIEF EXECUTIVE OFFICER KAREN OLESNICKY I would like to start by thanking all of our stakeholders for their condolences and heartfelt support following the tragic and sudden passing of our founding Managing Director and Chief Executive Officer, Matt Zema.

Matt’s deep knowledge, passion and commitment to the energy sector and the wider Australian community will forever be remembered, and we will continue to build on the strong legacy Matt has left here at AEMO – an organisation that is committed to its industry and its stakeholders. I am confident in AEMO’s strategic plan and the ability and commitment of our people, to continue to meet our responsibilities as Australia’s independent energy markets and power systems operator, and deliver the high level of advice, support and services that our stakeholders have come to expect.

I have been appointed Acting Chief Executive Officer, and AEMO’s Board has commenced a robust and exhaustive process to find a permanent Managing Director and Chief Executive Officer.

We will continue to keep you informed of any developments as this search is undertaken.

Looking forward, the expectation from the Board and leadership team is that AEMO will continue to evolve to accomodate new challenges as new technologies and services enter the market, while also

maintaining the vital work of managing and operating the Australian energy markets and systems.

As part of AEMO’s continued development and commitment to meeting our vision of energy security for all Australians, we have recently updated our Strategic Initiatives. Achieving our 2016-18 Strategic Initiatives will not only position AEMO as a world leading energy market and power systems operator, it will support the Australian industry through this period of major transformation.

You can learn more about our Strategic Initiatives on page 4.

AEMO was proud to launch its new website in late July, which is the first time AEMO has completely revisited and revised its web content and structure since 2009. This is a huge leap forward in providing a more streamlined and positive online experience for AEMO’s stakeholders.

August saw the release of our 2016 Electricity Statement of Opportunities (ESOO), as well as our first Future Power System Security Program Progress Report.

We also launched our inaugural AEMO Insights - a new report series produced

by AEMO that will explore a range of topical issues that have the potential to challenge the future management and operation of gas and electricity markets and infrastructure systems. This inaugural AEMO Insight looks at the projected impacts of the uptake of electric vehicles using forecasts from AEMO’s recently published 2016 National Electricity Forecasting Report for the National Electricity Market, and the 2015 Deferred Statement of Opportunities for the

Wholesale Electricity Market in Western Australia. You can learn more about these report findings in the following pages, as well as a wrap up of the stakeholder roadshow AEMO hosted in each capital city across the NEM to seek industry, government and consumer consultation on what they see as the challenges and opportunities in system security, and the possible solutions.

Also of note was the recent Council of Australian Governments (COAG) Energy Council meeting on 19 August.

The meeting involved robust discussion on key issues challenging the energy sector at present, including emission reductions and energy policy; energy market frameworks and power system security in South Australia; and the need to develop initiatives and services that are in line with changing consumer needs and expectations. This is an exciting time to be a part of Australia’s energy industry, as we are at the forefront of some of the world’s biggest energy challenges, and AEMO will continue in its capacity as an independent advisor to governments and industry to support well-informed energy policy decisions.

I look forward to keeping you up to date with the many important and exciting initiatives underway at AEMO.

CONTENTS P2

Update from Acting Chief Executive Officer Karen Olesnicky

P11 Updated Transmission Connection Point Forecasts released

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In memory of our founding CEO – Matt Zema

P12 South Australian Advisory Function – latest reports

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AEMO launches 2016-18 Strategic Initiatives

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AEMO unveils its new website

P12 Annual National Australian Institute of Energy Conference brings together leading energy experts in Perth

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Strategic, efficient investment required to support Australia’s energy transformation

P10 Update on AEMO’s Future Power System Security Program

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Energy Update August 2016

P13 The people behind AEMO P14 In brief

I N M E M O RY OF OUR FOUNDING CEO M AT T Z E M A On 23 July 2016, AEMO’s inaugural Managing Director (MD) and Chief Executive Officer (CEO) Matt Zema tragically passed away during his eighth year of leadership.

Matt was not only the MD and CEO of AEMO, but the heart and soul of our organisation, and his legacy will always be remembered.

Matt’s vision and determination resulted in significant developments in the gas market: the Wallumbilla and Moomba gas hubs. There is no doubt that these major developments would not have happened for many more years, if at all, without his determination,”

Matt’s accomplishments throughout his 30 years in the energy industry are many and long-lasting. His incredible contribution to the energy industry and our stakeholders is unparalleled and all those who knew him will remember Matt as an exceptional and visionary leader.

Josh Frydenberg, Federal Minister for the Environment and Energy.

From 1999 – 2008, Matt was CEO of the Victorian Energy Networks Corporation (VENCorp) which was responsible for operating the principal transmission system for gas in Victoria, and for the planning, procurement and augmentation of the Victorian electricity transmission network. Matt successfully led VENCorp through a number of complex emergency events such as the gas supply disruption from the Longford incident in September 1999, and electricity supply issues in January 2007 following severe bushfires, and in April 2008 following damaging storms.

Prior to this, Matt worked in general management roles with PowerNet Victoria, GPU PowerNet and GPU International, extending himself beyond the strong engineering foundation he had built at the State Electricity Commission of Victoria from 1983. He progressed quickly, developing senior skills in finance, legal and regulatory management, IT, and what Matt is widely respected for, people leadership and development.

Matt was appointed inaugural MD and CEO of AEMO in 2009, leading the transformation of the newly established entity, and building its reputation as a trusted, respected, independent resource for a broad range of stakeholders.

Matt was proud to be appointed by the Federal Government to the independent expert panel review of the Renewable Energy Target in 2014.

In November 2015, Matt was recognised for his expertise in energy market design and operations, and power systems planning and management, and was appointed Vice President of GO15, a voluntary initiative of the world’s largest power grid operators, representing more than 70 per cent of the world’s electricity demand.

Matt was also nominated as 2015 President-elect.

Also in late 2015, Matt oversaw the transition of the Wholesale Electricity Market and South West Interconnected System in Western Australia to AEMO. Matt will forever be remembered as a strong, intelligent and visionary leader at AEMO, and is sorely missed by all those who knew him.

Tom Parry, Former AEMO Chair, 2008 – 2015.

Matt earned widespread respect from both government and industry, with his expertise and long and distinguished career in energy,” Australia has lost a good, decent and exceptional man.

His vast knowledge and expertise in the operation of the NEM will be very difficult to replace, but such was the professionalism of the man, he built an organisation that will no doubt cope with such a traumatic and sudden loss,” Tom Koutsantonis, South Australian Treasurer and Minister for Energy.

Matt will be remembered for his strategic leadership across the energy sector, providing robust and invaluable advice to the Victorian Government on matters including energy security, planning and emergency management,” Lily D’Ambrosio, Victorian Minister for Energy, Environment and Climate Change.

Matt’s intelligence, drive, commitment and dedication through his long contribution to the energy sector have helped shape the market and delivered real benefits to the Australian community,” Statement on behalf of the Australian Energy Regulator.

He (Matt) was at the helm of the market operator’s establishment in 2009, achieving the remarkable integration of six separate founding entities from states and territories - winning widespread respect in the process,” John Pierce, Chair, Australian Energy Market Commission.

Matt was a valued and important leader in the Australian energy industry. He played a pivotal role in nurturing the development of national energy markets, and his leadership was critical during periods of significant change for the National Electricity Market,” Matthew Warren, Australian Energy Council.

Energy Update August 2016

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AEMO L A U N CH ES 2 016 –18 S TR AT EG IC I NITIATIVES AEMO is excited to share its recently released 2016-18 Strategic Initiatives. The Strategic Initiatives focus on areas including forecasting and planning, markets, data and information, stakeholder engagement, fees, power system security, and the Western Australian electricity market review – all of which play a critical role in AEMO’s vision to continue to provide energy security for all Australians. The initiatives have evolved to include our role in WA, and to reflect the changing energy landscape.

RESOURCES

Security and Reliability

PEOPLE

Forecasting and Planning

GOVERNANCE

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Energy Update August 2016

Markets

IT

Settlements and Prudentials

Energy Update August 2016

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AEMO UNVEILS ITS NEW WEBSITE After 12 months in the making, on 28 July 2016, AEMO’s new and improved website went live.

AEMO’s new website went live last month, including a range of new features and benefits designed with stakeholder needs at the forefront.

Our new website offers improved navigation, upgraded search functionality, data visualisations, and is fully mobile responsive.

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Energy Update August 2016

A few points on the new site: –– We have fully archived the old sites (including from Western Australia), and all pages and documents are searchable and available.

–– Some content has been revised and updated to fit our new, more userfriendly and intuitive structure.

–– Much of the content has been significantly refined.

As a part of AEMO’s ongoing commitment to best practice stakeholder engagement, AEMO will continue to evolve and update the website to meet stakeholder needs.

Visit www.aemo.com.au For more information or if you have any questions about AEMO’s website, please contact AEMO Website Redevelopment Project Manager, Annette Kelly.

The new website marks the first time AEMO has completely revisited its web content and design since the organisation was established in 2009, with the redevelopment project incorporating the revision of over one million words.

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ST RAT EGIC, EFFIC I EN T I N V ESTMEN T REQ UIRED T O S U PPORT AUS TRAL IA’ S ENE R GY TRANSFORM ATIO N AEMO’s 2016 Electricity Statement of Opportunities (ESOO) released on 11 August illustrates the growing importance of network and non-network developments to securely manage an evolving, lower carbon electricity generation future.

The 2016 ESOO provides National Electricity Market (NEM) participants, investors, and policy-makers with a projected 10-year outlook to 2025-26 of supply adequacy under a number of scenarios, and this year further generation withdrawals were modelled in response to the COP21 emission abatement commitment [1].

“As the NEM generation mix continues to keep pace with new technology and policy changes, future supply adequacy will depend on the availability and capability of new supply options providing electricity services when needed,” said AEMO Chief Operating Officer Mike Cleary.

Using information provided by industry, and assuming no additional generation withdrawals to occur between now and 2025-26, the only projected supply shortfall in the 2016 ESOO occurs towards the end of the outlook period in New South Wales (NSW).

“The 2015 ESOO identified NSW, South Australia and Victoria as potentially being at risk of breaching the reliability standard at various points over the next decade.

The latest information suggesting only a shortfall in NSW in 2025-26 takes into

account a reduction in demand forecasts, and illustrates a market response with some planned plant withdrawals deferred and an additional 537 megawatts (MW) of wind generation capacity announced,” said Mike.

However, additional to the information already announced by market participants, AEMO modelled scenarios that assume the COP21 commitment is achieved, investigating the impact of potential, but not announced, generation withdrawals to meet the electricity sector target agreed by the Council of Australian Governments (COAG) Energy Council.

“AEMO has modelled the impact of withdrawing a further 1,360 MW of coal-fired generation capacity to meet the COP21 commitment under AEMO’s neutral scenario, with results suggesting potential reliability breaches occurring in South Australia from 2019-20, and NSW and Victoria from 2025 onwards.

“These breaches would most likely occur when demand is high (usually between 3-8pm), coinciding with low wind and rooftop photovoltaic (PV) generation, and low levels of electricity supply imported from neighbouring regions.

“In this scenario, the majority of coal-fired generation withdrawals are assumed to come from Victoria, which would reduce that State’s generation output to support South Australia and NSW via the interconnected network,” said Mike.

The 2016 ESOO report outlines the importance of maintaining power system security during this period of rapid transformation, and with the potential withdrawal of coal-fired generation across the NEM, a number of support services will need to be provided by other resources.

“The secure operation of the NEM’s 40,000 kilometre transmission network - which transports generated electricity to demand points - is reliant on support services that manage the rate of change of frequency and system restart services.

AEMO is signalling potential future supply gaps in providing these important stability services, gaps which could be met through prospective new forms of electricity generation, or alternative technologies,” said Mike.

“To maintain a secure electricity supply demand balance during peak demand periods, AEMO is working closely with industry to identify both network and non-network developments. Possible solutions could include an increased interconnection across NEM regions, battery storage, and demand side management services.”

AEMO’s 2016 ESOO follows the recent release of the 2016 National Electricity Forecasting Report, which looks at forecast electricity demand trends over a 20-year horizon. The ESOO analyses these demand trends against future generation availability to identify any potential breaches of the NEM reliability standard, which requires that no more than 0.002% of annual operational electricity consumption should go unserved for any region in any year.

[1] Following the 2015 Paris 21st Conference of Parties, Australia has set a target to reduce carbon emissions by 26% to 28% below 2005 levels by 2030, building on the 2020 target of reducing emissions by 5% below 2000 levels.

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2016 ELECTRICITY STATEMENT O

The following information has been developed from AEMO’s 2016 Electricity Statement of Opportunities (ES participants, investors, and policy-makers with a projected 10-year outlook to 2025–26 of supply adequacy u We have also included information relating to Western Australia’s South West interconnected system (SWIS) Electricity Statement of Opportunities.

NEM-SIDE GENERATION AND PROJECT CAPACITY BY GENERATION TYPE (MEGAWATTS)

The table below shows the current capacity of existing, committed, publicly announced and withdrawn project capacity by genera

NEW SOUTH WALES

EXISTING

QUEENSLAND 5 3 26

%

COMMITTED

CONFIRMED

TOTAL 12,540MW

1

VICTORIA

1 3

1

17 66

SOUTH AUSTRALIA

19

35

4

63

%

14

10

% 62

TOTAL 16,289MW

TOTAL 4,240MW

%

51

20

TOTAL 12,276MW

12 35 65

%

%

TOTAL 198MW

TOTAL 225MW

%

100

%

100

88

WITHDRAWN

TOTAL 43MW

TOTAL 306MW

23 %

%

100

77

PROPOSED PROJECTS

TOTAL 1,025MW

3

9

23

1

12

4

17 %

15 ANNOUNCED WITHDRAWALS

PROPOSED

TOTAL 385MW

%

59

70

86

TOTAL 4,338MW

%

TOTAL 5,466MW

TOTAL 4,193MW

23

% 73

TOTAL 4,747MW

8 65

%

100

% 92

TOTAL 64MW

TOTAL 2,171MW

*Western Australia refers to the South West interconnected system (SWIS) only. The SWIS data refers to generation capacity only, and excludes demand side Please note some graphs do not up to 100% due to rounding.

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Energy Update August 2016

OF OPPORTUNITIES

SOO) which provides National Electricity Market (NEM) under a number of scenarios.

COAL Conventional coal-fired power stations using brown or black coal as a fuel source.

from the Deferred 2015 Wholesale Electricity Market GAS This includes combined-cycle gas turbine generators, open-cycle gas turbine generators, and other natural gas or biogas fuel sources.

ation type, as at 1 July 2016.

WESTERN AUSTRALIA*

TASMANIA 6

Other (Biogas + diesel)

82

W

36

28

%

Energy from the sun used to produce electricity from either solar thermal or photovoltaic (PV) technology.

24

11

SOLAR

%

WIND A wind farm generating electricity using wind as an energy source.

31

TOTAL 2,772MW

TOTAL 5,007MW

0

WATER Generation from either hydro turbine generators or energy from the ocean. Hydroelectric generation uses the power of pressurised, flowing water to drive a turbine connected to a generating unit.Ocean energy uses ocean waves, tidal currents, or ocean thermal energy to generate electricity.

BIOMASS Energy crops, or fuel crops, are grown to produce biomass for fuel. Can also include the bi-products of food crops or timber production.

Dual (gas/diesel) This includes combined-cycle gas turbine, generators open-cycle gas turbine generators, natural gas and diesel.

%

100

OTHER Conventional steam turbine or reciprocating engine powered generators using diesel or non-biomass municipal industrial waste as a fuel source.

TOTAL 208MW

3

W

%

100

TOTAL 329MW Other (diesel)

13 % 87 TOTAL 122MW management capacity.

Energy Update August 2016

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UPDATE ON AE M O ’S FUTU RE POWER SY STEM SECURITY P ROGRAM This month AEMO published its Future Power System Security Program August 2016 Progress Report to present the outcomes to date on AEMO’s Future Power System Security (FPSS) program, including an update on actions committed in the February 2016 joint AEMO and ElectraNet report. The progress report also outlines work currently underway and priority focus areas until the end of 2016.

“AEMO is operating in a changing electricity landscape as synchronous generation is progressively being displaced by non-synchronous generation, changing the operational characteristics of the power system,” explained Group Manager Corporate Development, Frank Montiel. “Consumers are also becoming more active about how their electricity demand is met and managed, resulting in increasing amounts of distributed energy resources (DER), such as rooftop photovoltaics (PV), generating to the power system. This is changing the way AEMO and the industry must manage the power system of the future.”

Against this backdrop and complementary to AEMO’s existing major reports such as the National Electricity Market (NEM) Electricity Statement of Opportunities (ESOO) also released this month,

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Energy Update August 2016

AEMO established the FPSS program to formalise and accelerate the work it has undertaken in the last few years to address operational challenges arising from the changing generation mix.

“If left unaddressed, these challenges will test the efficiency and adequacy of current operational and market processes,” said Frank. “AEMO’s FPSS program focuses entirely on power system security. It aims to adapt current processes to address immediate risks, while promoting efficient solutions to maintain power system security over the next 10 years.

The program takes a strategic approach to studying future power system security requirements, and will evolve to accommodate new challenges as new products and services enter the market.”

The publication of the progress report was followed up by a well-attended roadshow around the NEM, where AEMO representatives met with consumers, industry and government representatives to share the key focus areas of the program and hear stakeholder views on the opportunities and challenges in managing the power system of the future.

“This year’s roadshow topic, ‘The future of power system security’, stemmed from a number of requests from stakeholders as part of AEMO’s consumer forum to learn more about what AEMO is doing in this area. The sessions build on and

consolidate our stakeholder collaboration to date on this program, in terms of proactively involving stakeholders in the process of identifying the challenges and opportunities in system security and the possible solutions,” said Frank.

“The roadshow provided an invaluable opportunity for the energy industry to come together again to further discuss these critical issues, and from our perspective, it gave our team a platform for some excellent face-to-face engagement with our industry peers where we could engage in two-way conversations and share knowledge and tease out ideas.”

This full Future Power System Security Program Progress Report, complete with fact sheets and a handy explainer video are all available on our new website.

AEMO welcomes feedback on the FPSS program progress report and invites stakeholders to submit their feedback by 16 September to stakeholderelations@aemo.com.au For more information, please contact Group Manager Corporate Development, Frank Montiel.

U P D AT E D TRANSMISSION CONNECTION POINT FORECASTS RELEASED In July, AEMO published the latest Victorian, New South Wales (including the Australian Capital Territory), South Australian, and Queensland connection point forecasts.

appliances. This is being offset by improvements in energy efficiency technologies (such as air conditioners that consume less energy, and increased use of insulation in walls and roofs), and the continued uptake of solar photovoltaic (PV) systems. Consumers are also predicted to increase their use of reverse cycle air conditioners for heating, partly as a result of fuel switching from gas to electric appliances.

These maximum demand (MD) transmission connection point forecasts provide detailed local level insights into maximum demand for the next decade, for both summer (2016-17 to 2025-26) and winter (2016 to 2025). Transmission connection points are the areas on the electricity grid where transmission and distribution networks intersect.

Key growth areas

Key trends in summer and winter MD

State

Summer 10% POE (Probability of Exceedance) MD

VIC

Deer Park (new in 2018), Brunswick (new in 2017), South Morang and Cranbourne

SA

Penola West and Dalrymple

QLD

Nebo, Moranbah (Town), Collinsville Load and Biloela

NSW

Murrumbateman, Marulan, Yass, Cowra and Inverell

Overall, summer MD is expected to decline in Victoria (VIC) and South Australia (SA), remain close to current levels in New South Wales (NSW), and increase in Queensland (QLD). Whereas winter MD is forecast to increase in QLD, NSW, and VIC, and remain at current levels in SA. In general, growth in demand is due to increasing population growth, and increased uptake and use of electric

Supporting documentation includes a dynamic interface for each state, which provides detailed forecasts and commentary specific to each connection point, plus an updated methodology document describing the modelling approach used to develop these forecasts.

AEMO’s Interactive planning map is available on our website.

For more information about the reports, contact AEMO Group Manager – Forecasting & Planning, Craig Price.

Across the jurisdictions, individual connection point trends vary, with some showing a change from summer to winter peaking.

The largest connection point growth areas are:

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S OU TH AUSTR A LI A N A D V IS ORY FUNC TI ON – L AT ES T R E PO RTS AEMO has published its latest reports under its South Australian Advisory Functions (SAAF), which is a collection of independent reports prepared by AEMO and published for the South Australian jurisdiction under the National Electricity Law.

2016 South Australian Electricity Report The 2016 South Australian Electricity Report (SAER) is an executive briefing report providing information about South Australia’s electricity supply and demand.

It summarises information from the suite of AEMO’s SAAF reports and focuses on: –– Consumption and demand, and the impact of rooftop photovoltaic (PV) generation, battery storage, and electric vehicles.

2016 South Australian Historical Market Information Report The South Australian Historical Market Information Report (SAHMIR) provides historical information on South Australian electricity market prices, generation, demand, and interconnector supply, focusing on the past five financial years.

To access these reports, please visit AEMO’s website.

–– Existing and committed supply, including generation and interconnector capacities and historical performance.

–– Historical electricity spot market pricing information.

–– Supply adequacy and system security outlook over the next ten years.

ANN U A L N ATI ONAL AU S TR ALIAN IN S T I T U TE OF E NER GY C O N FER ENC E B R I N G S T OG E T H E R LEAD I N G EN ER G Y E X P ERT S IN P E RT H AEMO Executive General Manager (WA) Cameron Parrotte attended this year’s annual National Energy Conference held in Perth by the Australian Institute of Energy.

Cameron joined fellow industry experts on a panel discussion exploring the topic of ‘The Western Australian Electricity Market Review – where to from here?’

The other panel speakers were: • Mike Thomas, Co-Founder, Lantau Group.

• Lyndon Rowe, Chairman, Synergy.

• Simon Middleton, Program Director, Electricity Market Review at the Public Utilities Office.

The session provided a robust discussion on the different energy market structures around the world, and how to provide the best outcomes for consumers in Western Australia. The session also provided insights on aligning the Western Australian market with the national market and the implications of disruptive technologies on the efficient operation of electricity markets.

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Cameron presented on the areas of market reform that AEMO is responsible for implementing, in line with the proposed future of Western Australian Market Design, including the introduction of a constrained market and dispatch models and the transfer of retail market operation functions to AEMO by 1 July 2018.

Cameron also highlighted the importance of working closely with WA market participants and the Public Utilities Office throughout the reform implementation, to achieve the best outcome for WA consumers and industry.

THE PEOPLE BEHIND AEMO… INTRODUCING CHIN CHAN, GROUP MANAGER – M A R K E T M A N A G E M E N T, MARKETS In this section we take you behind the scenes at AEMO to introduce you to some of our employees. This month, we chatted with Chin Chan, Group Manager – Market Management, Markets, about his role at AEMO and the challenges of a rapidly changing market.

Energy Update (EU): Thank you for sharing your story with us, Chin. Can you tell us a bit about your background?

EU: What projects are your team currently involved in and how are they important to AEMO?

Chin Chan (CC): I am an engineer by training with tertiary qualifications in both engineering and IT. I have spent almost 30 years in the energy industry, working for VENCORP, the Victorian Power Exchange and the State Electricity Commission of Victoria prior to joining AEMO.

CC: My team is involved in many projects across the energy industry. One of the smaller projects we undertake is system enhancement. When new rules are introduced to the market, we are responsible for upgrading and testing our systems to ensure the changes have been implemented correctly, and the system is running smoothly.

EU: Can you explain a bit about your role here at AEMO? CC: I am the Group Manager of Market Management, Markets, where I oversee the metering, settlements and prudential teams. Each team is integral to the successful operation of the energy market.

The purpose of the metering team is to facilitate the operation of the National Electricity Market (NEM) retail market and provide assurance for the accuracy of metering data used in the settlement of AEMO’s wholesale energy markets.

The metering team also accredits the providers of NEM metering services.

The settlement team is responsible for the timely and accurate settlement of the wholesale energy markets, which includes the NEM, Short Term Trading Market, the Victorian Declared Wholesale Gas Market and the Gas Supply Hub. The prudential team is there to ensure that prudential risk is managed effectively in the wholesale energy markets.

EU: What was it about the energy sector that attracted you?

CC: Energy is an essential commodity to everyday life, so I was attracted to work within an industry that is vital to every Australian. I also love that the energy industry is constantly changing and presenting new challenges for my team and I to overcome.

Some of the major projects we are involved in are under the Western Australian Market Reform Program and the Power of Choice Program. These projects ensure AEMO is continually making a positive impact towards the energy industry, and contributing to our 2016-2018 Strategic Initiatives.

EU: What are some of the challenges you and your team are currently facing within the industry?

CC: The industry is evolving quite rapidly, so we are seeing new challenges and opportunities every day. Some of the key challenges we are facing today include maintaining the operation of existing energy markets while supporting major industry reform programs, and preparing ourselves for structural change in energy markets.

EU: What do you love most about working at AEMO? CC: I love being a part of AEMO’s vision to provide energy security for all Australians. Working for AEMO really gives me a purpose to get out of bed in the morning and know that my work will have a positive impact towards society. I also like having the opportunity to face evolving technical challenges within the energy industry every day.

Energy Update August 2016

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IN BRIEF AEMO LAUNCHES NEW R E P O RT S E R I E S – A E M O I N S I G H T S – S TA RT I N G W I T H A L O O K AT ELECTRIC VEHICLES The transformation of Australia’s energy system – driven by changes in technology, the economy, and consumer behaviour – has implications for the operation and evolution of the physical, market, and regulatory infrastructure of the energy industry.

This rapid and continuing transformation requires new ways of thinking about energy challenges, and innovative methods to accommodate a very different consumer and economy. The magnitude and extent of change makes it harder to project with certainty, as the past is no longer indicative of the future.

This month AEMO released the first of our new AEMO Insights reports. This study is about electric vehicles (EVs), providing a view of how this emerging technology may develop in Australia and what this could mean for electricity consumption and demand, expanding on the work AEMO started in its 2015 Emerging Technologies Information Paper.

This EV projection is aligned with AEMO’s recently published 2016 National Electricity Forecasting Report (NEFR), showing how EV uptake could affect the 2016 NEFR forecasts of electricity consumption and demand in the National Electricity Market (NEM) over a 20-year outlook period to 2035–36. As well as projections for the NEM, EV uptake projections are also provided for Western Australia’s Wholesale Electricity Network (WEM). AEMO will use this analysis as a starting point for monitoring the emergence and use of EVs in the light vehicle fleet in Australia.

To read the report, head to AEMO’s media centre online.

AEMO TRAINING Course

Location

Date

Wholesale Electricity Market (WEM) introduction

Perth

14 September 2016

National Electricity Market (NEM) overview

Brisbane

15 September 2016

Energy Markets: Stem, Balancing and LFAS

Perth

21 September 2016

Reserve Capacity Mechanism (RCM)

Perth

21 September 2016

Understanding Market Settlement and Transfer Solution (MSATS)

Melbourne

5–6 October 2016

Wholesale Electricity Market (WEM) introduction

Perth

12 October 2016

Energy Markets: STEM, Balancing and LFAS

Perth

19 October 2016

Reserve Capacity Mechanism

Perth

19 October 2016

National Electricity Market (NEM) overview

Melbourne

20 October 2016

For more details on all courses, and on how to register, visit AEMO’s Learning Centre or call the Information and Support Hub on 1300 236 600.

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