The Australian Energy Market Operator (AEMO) performs an array of gas and electricity market, operational, development and planning functions. It manages the
National Electricity Market
The National Electricity Market (NEM) is an arrangement in Australia's electricity sector for the connection of the electricity transmission grids of the eastern and southern Australia states and territories to create a cross-state wholesale ele ...
(NEM), the
Wholesale Electricity Market (WA) (WEM) and the Victorian gas transmission network. AEMO also facilitates electricity and gas full retail contestability, overseeing these retail markets in eastern and southern Australia. It is additionally responsible for national transmission planning for electricity and the establishment of a Short Term Trading Market (STTM) for gas.
AEMO has several departments within such as Engineering and Design, Forecasting, National Planning, Operational forecasting, Markets and Strategies as well as administrative, safety, peopleculture and human resources departments.
AEMO is the semi-governmental body that acts as the information source for the industry's and manufacturers outlook on the national electricity policies, forecast as well as future plans. The organisation is owned 60% by the Government and 40% by industry and market participants.
AEMO has offices across the country in Melbourne, Brisbane, Sydney, Perth, Adelaide as well as a handful of regional offices.
History
It commenced operations on 1 July 2009, superseding several state-based and cross-state organisations including the National Electricity Market Management Company Limited (NEMMCO), the Victorian Energy Networks Corporation (
VENCorp
The Victorian Energy Networks Corporation (VENCorp) was a Victorian State Government-owned entity established on 11 December 1997 responsible for the efficient operation of Natural gas, gas and electricity industries in Victoria (Australia), Vic ...
) which was responsible for the efficient operation of gas and electricity industries in Victoria, the
Electricity Supply Industry Planning Council (ESIPC) which was responsible for the effective operation of the electricity industry in South Australia, the South Australian operations of Retail Energy Market Company (REMCo)), Gas Market Company (GMC) and Gas Retail Market Operator (GRMO).
In 2015, AEMO became the market and independent power system operator for the Wholesale Electricity Market (WEM) in Western Australia.
In March 2017, AEMO sought to reassure the public that the closure of the
Hazelwood Power Station
The Hazelwood Power Station is a decommissioned Lignite, brown coal-fuelled thermal power station located in the Latrobe Valley of Victoria, Australia. Built between 1964 and 1971, the 1,600-megawatt-capacity power station was made up of eight ...
, which has a capacity of 1600 megawatt, would be offset by the availability of three mothballed gas-fired stations, which have a combined capacity of 830 megawatts, and large industrial businesses agreeing to time-shift their electricity use in the event of an emergency. The addition capacity would be provided by the
Pelican Point Power Station in South Australia,
Tamar Valley Power Station in Tasmania and
Swanbank Power Station in Queensland.
In 2017,
AGL Energy
AGL Energy Ltd is an Australian listed public company involved in both the generation and retailing of electricity and gas for residential and commercial use. It is one of the "big three" retailers in the National Electricity Market. AGL is ...
reaffirmed that it intends to close the
Liddell Power Station
Liddell Power Station is a decommissioned coal-fired thermal power station that had four EE steam-driven turbine alternators, providing a combined electrical capacity of .
Its operating capacity was assessed at in April 2018. Commissioned ...
in 2022. The closure of this and other coal-burning power stations in Australia has led to the former
Prime Minister of Australia
The prime minister of Australia is the head of government of the Commonwealth of Australia. The prime minister is the chair of the Cabinet of Australia and thus the head of the Australian Government, federal executive government. Under the pr ...
,
Malcolm Turnbull
Malcolm Bligh Turnbull (born 24 October 1954) is an Australian former politician and businessman who served as the 29th prime minister of Australia from 2015 to 2018. He held office as Liberal Party of Australia, leader of the Liberal Party an ...
, to seek advice from AEMO on extending the life of a number of them,
to head off future power shortages. Turnbull said the government had been advised that if the Liddell plant were to close in 2022, there would be a 1000MW gap in
base load
The base load (also baseload) is the minimum level of demand on an electrical grid over a span of time, for example, one week. This demand can be met by unvarying power plants or dispatchable generation, depending on which approach has the best m ...
,
dispatchable power generation.
[
In May 2018, AEMO warned solar and wind projects in north-western Victoria of potential curtailment to their generation profiles. In particular, the 220kV ]transmission line
In electrical engineering, a transmission line is a specialized cable or other structure designed to conduct electromagnetic waves in a contained manner. The term applies when the conductors are long enough that the wave nature of the transmis ...
that links Ballarat
Ballarat ( ) () is a city in the Central Highlands of Victoria, Australia. At the 2021 census, Ballarat had a population of 111,973, making it the third-largest urban inland city in Australia and the third-largest city in Victoria.
Within mo ...
, Horsham
Horsham () is a market town on the upper reaches of the River Arun on the fringe of the Weald in West Sussex, England. The town is south south-west of London, north-west of Brighton and north-east of the county town of Chichester. Nearby to ...
, Red Cliffs, Kerang
Kerang is a town on the Loddon River in north-central Victoria (Australia), Victoria, Australia. It is the commercial centre to an irrigation district based on livestock, horticulture, cytisus proliferus, lucerne and grain. It is located no ...
and Bendigo
Bendigo ( ) is an Australian city in north-central Victoria. The city is located in the Bendigo Valley near the geographical centre of the state and approximately north-west of Melbourne, the state capital.
As of 2022, Bendigo has a popula ...
was the focus of their announcement. "If further development proceeds as suggested, this will add to the thermal constraints in this area", AEMO warns.spot market
The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery. It contrasts with a futures market, in which delivery is due at a later date. In a spot market, s ...
for wholesale electricity across the country in June 2022.coal-fired power station
A coal-fired power station or coal power plant is a thermal power station which burns coal to generate electricity. Worldwide there are about 2,500 coal-fired power stations, on average capable of generating a gigawatt each. They generate ...
s were expected to shutdown by 2030.
See also
* Australian Energy Market Commission
* Australian Energy Regulator
The Australian Energy Regulator (AER) is the regulatory authority for the wholesale electricity and gas markets in Australia. The AER is a part of the Australian Competition & Consumer Commission, and enforces the rules established by the Austr ...
* Energy policy of Australia
Energy policy in Australia is managed by the states and territories as well as at the federal level. The federal government sets the broad energy framework, including national targets for renewable energy, emissions reduction, and energy secur ...
* Australian Renewable Energy Agency
References
External links
*
{{Authority control
Energy policy of Australia
Energy markets
2009 establishments in Australia