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The AEMO report highlights NEM risks but prioritizes short-term intervention over long-term demand-side policy solutions.
Vinay Chhoda · Venture InsightsPeriod: September 20176 min read
Last updated
Recommended strategic reserve for SA and Victoria (Summer 2017-18)
Total nominal cost of Victorian desalination plant (30-year forecast)
This report analyzes the AEMO's findings on the National Electricity Market (NEM), specifically the urgent need for 1,000 MW of dispatchable capacity following the scheduled 2022 closure of the Liddell Power Station. It critiques the government's reactionary stance, arguing that current policy adds to market hysteria rather than incentivizing appropriate generation assets. The analysis highlights a failure to prioritize demand-side management, which could offer a cheaper alternative to capital-intensive supply interventions that risk becoming stranded assets.
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