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Australia

AUSTRALIA’S ACTION PLAN FOR

POWER SECTOR DECARBONISATION

Sandra Choy and Harriet Gibson

Department of Climate Change, Energy, the Environment and Water (DCCEEW)

Delivered for the 14th Clean Energy Ministerial (CEM14)

July 2023

Australia

ACKNOWLEDGEMENT OF COUNTRY

Action Plan for Power Sector Decarbonisation

The Australian Government Department of Climate Change, Energy, the Environment and Water recognises the First

Peoples of this nation and their ongoing connection to culture and country. We acknowledge First Nations Peoples

as the Traditional Owners, Custodians and Lore Keepers of the world's oldest living culture and pay respects to their

Elders past, present and emerging.

Australia

A collaborative report from the Clean Energy Ministerial (CEM) on Lessons Learned for Rapid Decarbonization of Power Sectors was

delivered to energy ministers and presented at the 13th CEM (CEM13) in the United States in September 2022. In light of these

lessons learned and discussed at CEM13, several jurisdictions signaled intent to develop Action Plans for power sector

decarbonization, to be released at CEM14 in India in July 2023.

These Action Plans complement, but are differentiated from, other international power sector initiatives such as the Breakthrough

Agenda (whose broad purpose is to raise collective ambition) and the Global Power System Transformation (G-PST) Consortium

(whose goals are to convene power system operators to accelerate research innovations and foster peer learning). The Action

Plans, supported by the 21st Century Power Partnership and other CEM workstreams via direct technical assistance and capacity

building, are intended to focus on select implementation actions given each country’s existing power sector goals and activities,

and are an opportunity for countries to display leadership in power sector decarbonization.

These Action Plans are voluntary, developed by each country individually, not comprehensive of all activities within the

jurisdiction, and are living documents that are subject to change.

Action Plan for Power Sector Decarbonisation

BACKGROUND

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AustraliaAUSTRALIA’SACTIONPLANFORPOWERSECTORDECARBONISATIONSandraChoyandHarrietGibsonDepartmentofClimateChange,Energy,theEnvironmentandWater(DCCEEW)Deliveredforthe14thCleanEnergyMinisterial(CEM14)July2023AustraliaACKNOWLEDGEMENTOFCOUNTRYActionPlanforPowerSectorDecarbonisationTheAustralianGovernmentDepartmentofClimateChange,Energy,theEnvironmentandWaterrecognisestheFirstPeoplesofthisnationandtheirongoingconnectiontocultureandcountry.WeacknowledgeFirstNationsPeoplesastheTraditionalOwners,CustodiansandLoreKeepersoftheworld'soldestlivingcultureandpayrespectstotheirElderspast,presentandemerging.AustraliaAcollaborativereportfromtheCleanEnergyMinisterial(CEM)onLessonsLearnedforRapidDecarbonizationofPowerSectorswasdeliveredtoenergyministersandpresentedatthe13thCEM(CEM13)intheUnitedStatesinSeptember2022.InlightoftheselessonslearnedanddiscussedatCEM13,severaljurisdictionssignaledintenttodevelopActionPlansforpowersectordecarbonization,tobereleasedatCEM14inIndiainJuly2023.TheseActionPlanscomplement,butaredifferentiatedfrom,otherinternationalpowersectorinitiativessuchastheBreakthroughAgenda(whosebroadpurposeistoraisecollectiveambition)andtheGlobalPowerSystemTransformation(G-PST)Consortium(whosegoalsaretoconvenepowersystemoperatorstoaccelerateresearchinnovationsandfosterpeerlearning).TheActionPlans,supportedbythe21stCenturyPowerPartnershipandotherCEMworkstreamsviadirecttechnicalassistanceandcapacitybuilding,areintendedtofocusonselectimplementationactionsgiveneachcountry’sexistingpowersectorgoalsandactivities,andareanopportunityforcountriestodisplayleadershipinpowersectordecarbonization.TheseActionPlansarevoluntary,developedbyeachcountryindividually,notcomprehensiveofallactivitieswithinthejurisdiction,andarelivingdocumentsthataresubjecttochange.ActionPlanforPowerSectorDecarbonisationBACKGROUNDAustraliaI.PLANNINGActionPlanforRapidPowerSectorDecarbonisationAustraliaTwomainelectricitymarkets:AUSTRALIA’SENERGYCONTEXTActionPlanforPowerSectorDecarbonisation:Planning200TW/hofannualelectricitygeneration.65GWinstalledelectricitygenerationcapacity.15GWofsolarrooftopPV.NationalElectricityMarket(NEM)20TW/hofannualelectricitygeneration.6GWinstalledelectricitygenerationcapacity.1.5GWofsolarrooftopPV.WholesaleElectricityMarket(WEM)35.9%Australia’selectricitygenerationfromrenewablesourcesin2022.80%ofAustralia’selectricityconsumptionoccursontheEastandSoutheasterncoast.Source:CleanEnergyAustraliaReport(2023)AustraliaTACKLINGTHECLIMATECRISIS–CLIMATETARGETSActionPlanforPowerSectorDecarbonisation:Planning2022:Governmentlegislatesemissionsreductiontargets,includinga43%reductionfrom2005levelsby2030andnet-zeroemissionsby2050.2030:Reachanationalrenewableenergytargetof82%inelectricitygeneration.2050:Achieveeconomy-widenet-zerogreenhousegasemissions.FederalTargetsandTimelineAustralianEnergyMarketCommissionKeyAgenciesforAchievingTargets:AustraliaAPLANFORTHEPOWERSYSTEM–INTEGRATEDSYSTEMPLAN(AEMO)ActionPlanforPowerSectorDecarbonisation:Planning•TheAEMO’sIntegratedSystemPlan(ISP)isa‘wholeofsystemplan’forsupplyingaffordableandreliableelectricitytohomesandbusinessesintheeasternandsoutheasternstates.•IdentifieswhereinvestmentisneededtomeetthefutureneedsoftheNationalElectricityMarket,including:•futuretransmissionprojects•generationandstorageprojects•demand-sidedevelopments•TheGovernmentisproviding$20billionthroughRewiringtheNationinlow-costfinance(asdebtandequity)toexpand,upgradeandmoderniseAustralia’selectricitygrid.•ThiswillsupportthedevelopmentofinterstatetransmissionlinksandinfrastructureforRenewableEnergyZones.Source:AEMO(2022)AustraliaEXPECTEDCHANGESTO2050(STEPCHANGESCENARIO)-AEMOActionPlanforPowerSectorDecarbonisation:PlanningGrid-scalewindandsolartoincrease9-foldDistributedsolarPVtoincrease5-foldElectricityusagefromthegridtonearlydoubleStoragecapacitytoincreasebyafactorof30(Batteries,virtualpowerplants,pumpedhydro)AustraliaACOORDINATEDAPPROACHTOPOWERSECTORPLANNINGActionPlanforPowerSectorDecarbonisation:Planning•ThePoweringAustraliaPlanisfocusedonacceleratingAustralia’semissionsreductionsanddeliveringreliableandaffordableenergy.•Aimstoreduceemissions,createjobs,andcutpowerbillsthroughboostingrenewableenergy.•Focusesonthemediumtolongtermchangesnecessarytoenablethetransformationofoureconomyandelectricitygridonthewaytonet-zero,through:DecarbonisationElectrificationEnergyefficiencyTechnologyinnovationanddevelopmentPoweringAustraliaPlanAustraliaII.BUILDINGActionPlanforRapidPowerSectorDecarbonisationAustraliaBUILDINGTHESYSTEM–RENEWABLEENERGYZONES(REZ)ActionPlanforPowerSectorDecarbonisation:Building•REZ:highqualityresourceareaswhereclustersoflarge-scalerenewableenergyprojectscanbedevelopedusingeconomiesofscale.•Solar,Wind(land&offshore)andHydropower•CoordinateddevelopmentacrosstheEastcoastandSouthernstates.•REZsconnectmultiplerenewablegeneratorsinonelocation,andaremorecosteffectiveandefficientinutilisingresources.Neoen’sGoyderSouthProject–SouthAustralia•LocatednearBurrainSouthAustralia’sMidNorthregion•Landuseforfarming-windturbinesoccupylessthan1%ofthelandandsheepcangrazeamongsolarpanels•Windturbines(1200MW),solar(600MW),andbatterystoragecapacity(900MW)•Stage1willdeliveranadditional412MWofcapacitytoSouthAustralia'sgridby2024Source:GoyderRenewablesZone(2023)AustraliaBUILDINGTHESYSTEM–TRANSMISSIONRewiringtheNation(RtN):•Willinvestupto$20billioninlow-costfinancetoexpand,upgradeandmoderniseAustralia’selectricitygrid,includinginfrastructure,interstateelectricitytransmissionandrenewableenergyzones.•DeliveredinpartnershipbytheRewiringtheNationOffice(RtNO)andtheCleanEnergyFinanceCorporation(CEFC).MarinusLink(VIC-TAS)•Buildingunder-seaHVDCtransmissioncables(1500MW)toconnectelectricitygeneratedinTasmaniatoreachtheNEMinVictoria.•BoostadditionalpowerfromtheSnowyHydro2.0powerplantandenableNEMaccesstoTasmania’shydropower.•Projectwillhelptoreduceemissionsbyupto140MTofCO2by2050andlowerelectricitypricesintheNEM.ActionPlanforPowerSectorDecarbonisation:BuildingSource:EnergyNetworksAustralia(2022)AustraliaBUILDINGTHESYSTEM–OFFSHOREWINDActionPlanforPowerSectorDecarbonisation:BuildingOffshoreElectricityInfrastructureAct2021•UnlockoffshoreREprojectsinCommonwealthwaters•SixregionshavebeenproposedwithoffshorewindpotentialinNSW,VIC,TASandWA•Therearenow2areasdeclaredassuitableforoffshorewindunderthisActGippsland,Victoriaoffshorewindprojects-Australianfirst•FirstOffshoreWindZonesdeclaredinDecember2022•Locatedbetween10-50kmofftheGippslandcoast•Multipleprojectsintheearlyplanninganddevelopmentstages(sometostartconstructionby2028)•Expectedtogenerate1–2.2GWperproject,connectingintoexistinggridsintheLatrobeValleyand/orotheronshorerenewableenergygridsAustraliaFINANCINGTHETRANSFORMATION–SUPPLYCHAINSActionPlanforPowerSectorDecarbonisation:BuildingNationalReconstructionFund•$15billioncommittedtoestablishtheNationalReconstructionFund(NRF).•Investingincleanenergyindustriesandsupplychainstosupport,diversify,andtransformAustralia’sindustrialcapabilitiesandmanufacturingbase.•Twoofthepriorityinvestmentareasare:Upto$3billionforrenewablesandlowemissionstechnologies–windturbines,batteries,solarPV,greenmetals,etc.$1billionforvalueaddingresources–criticalmineralsPoweringtheRegionsFund•$1.9billioncommittedtoestablishthePoweringtheRegionsFund(PRF).Thefundwillfocusonfourkeyareas:1.Decarbonisingexistingindustries2.Developingnewcleanenergyindustries3.Workforcedevelopment4.Purchasingcarboncredits•$400millionCriticalInputstoCleanEnergyIndustriesStreamtosupportprimarysteel,cement,lime,aluminiumandaluminaindustries.•$400millionIndustrialTransformationProgram(ARENA):•Emissionsreductionofindustrialfacilitiesinregionallocations-manufacturing,mining,andagriculture.•Trial,demonstration,andsmall-scaleprojects.Source:DCCEEW(2023)AustraliaRENEWABLEENERGYANDSTORAGE–SCALINGANDINNOVATIONActionPlanforPowerSectorDecarbonisation:Building•CapacityInvestmentScheme(CIS)-tounlock$10billionofinvestmentindispatchablerenewablecapacity,ensuringreliabilityinrapidlychangingelectricitymarkets.•$200millioningrantfundingtodeliverCommunityBatteriesforHouseholdSolar-tohelphomeslowertheirpowerbillsandreducepressureontheelectricitygrid.•TheAustralianMadeBatteryPlantocreatejobsandhelpdecarbonizeby:oDevelopingAustralia’sfirstNationalBatteryStrategy,creatinganAustralian-madeBatteryManufacturingPrecinctandestablishingaPoweringAustraliaIndustryGrowthCentreTheAustralianRenewableEnergyAgency(ARENA)providesgrantfundingtoimproveaffordabilityandincreasethesupplyofrenewableenergyinAustralia.•Provided$3milliontoTheUniversityofSydney,inpartnershipwithSunDrive.Theirprojectaimsto:•Commercialisesilicon-perovskitetandemsolarcellmanufacturingtechnologiesinAustralia•Developlow-costfabricationtechnologiesformoduleswithhighdurability,toimproveenergyefficiencyanddrivedowncostsSource:ARENAProjects(2022)Source:DCCEEW&DISR(2023)AustraliaIII.OPERATINGActionPlanforRapidPowerSectorDecarbonisationAustraliaAEMO’SENGINEERINGFRAMEWORKActionPlanforPowerSectorDecarbonisation:OperatingEngineeringRoadmapto100%Renewables–AEMO’sviewofthetechnical,engineering,andoperationalactionsrequiredtoprepareandreliablyoperatetheNEMat100%instantaneousrenewablepenetration.•3technicalpreconditionsrequired:powersystemsecurity,systemoperability,andresourceadequacyandcapability.•Over150actionsandsubcomponentactions,over500detailedconsiderationsandidentifiedresponsibleparties,andmanyexistingandemergingchallengesassociatedwithachievingeachprecondition.Source:AEMO(2022)OperationsTechnologyRoadmap–ControlRoomoftheFuture•Theroadmapidentifiesthesystemandmarketoperationscapabilityneedstoenablethistransformativechangewhilemaintainingelectricitysystemreliability,security,andresilience•NumerousinitiativestouplifttheControlRoom’soperationaltoolkit•Keytoolswillbring•Enhancedsituationalawarenessandbigdatavisualisationandmodelling•GreatersystemvisibilityandanticipationcapabilitiesAustraliaOPERATINGTOOLROADMAPActionPlanforPowerSectorDecarbonisation:OperatingSource:AEMO(2022)AustraliaINTEGRATIONOFDISTRIBUTEDENERGYRESOURCESActionPlanforPowerSectorDecarbonisation:OperatingConsumerEnergyResources(CER)ImplementationPlanseekstorewardconsumers,andsupportinnovativebusinessmodelsandsystemoperatorstobettermonitorandoperatethesystem.InteroperabilityPolicy–consultingonanAssessmentFrameworkonapplyingtechnicalstandardsforinverter-basedCERdevices.•AEMO,DISR,andtheAEMCwillprovidedirectionontechnicalstandards,includingmandatoryrequirementsfornewinverter-basedCERdevicesandcybersecurityprotection.AEMO’sDistributedEnergyResourcesProgramseekstounderstandandintegratehighlevelsofdistributedenergyresources(DERs)intotheNEM.•Workstreams:DERDemonstrations,Modelling,DataandVisibility,andStandardsDevelopmentAustralianEnergyMarketCommissionAustraliaUPDATEDOPERATINGMODEL–ENERGYADVISORYPANELActionPlanforPowerSectorDecarbonisation:OperatingTheNationalEnergyTransformationPartnership(NETP)•AframeworkfornationalalignmentandcooperativeactionbygovernmentstosupportthetransformationofAustralia'senergysector.•ThenewoperatingmodelistheEnergyAdvisoryPanel(EAP)TheEnergyAdvisoryPanel(EAP)•UndertheNETP,theEAPcoordinatesmarketbodies'advicetogovernmentsonissuesrelatingtothesecurity,reliability,andaffordabilityofAustralia’seastcoastenergysystem.•EnergyMarketBodiesrepresented:AustralianEnergyMarketCommission(observerstatusonly)AustraliaSTAKEHOLDERENGAGEMENTANDINCLUSIONActionPlanforPowerSectorDecarbonisationCommunityEngagement•SecuringcommunitysupportandappropriatesociallicenceisvitaltotimelydeliveryofNEMinfrastructureprojects.•Occursthroughongoingconsultationswithlocalcouncils,landholders,TraditionalOwners,andcommunitymembers.NationalEnergyPerformanceStrategy•TheGovernmentisdevelopingthisStrategytoacceleratedemand-sideactiontoimproveenergyperformance,affordability,andreduceemissions.NetworkRegulatorsTheEnergyAdvisoryPanel(EAP)SupportingagenciesAustralianEnergyMarketCommission•Independentcommissionerreceivingandreferringcomplaintsfromconcernedcommunityresidentsaboutrenewableenergyprojectsandnewmajortransmissionprojects.•Promotesinformationtransparencyandbestpracticesforindustryandgovernment.•ThegovernmentiscommittedtoworkwithandlearnfromFirstNationspeopletomanagetheclimatecrisisandincreaseadaptationaction.•DevelopingaFirstNationsCleanEnergyStrategy,co-designedwithIndigenouscommunities.•EnsuresFirstNationspeoplehaveasayinenergypoliciesandprogramsinthetransitiontonetzero.AustraliaBIBLIOGRAPHYActionPlanforPowerSectorDecarbonisation•https://aemo.com.au/-/media/files/major-publications/isp/2022/2022-documents/2022-integrated-system-plan-isp.pdf?la=en•https://aemo.com.au/-/media/files/initiatives/engineering-framework/2022/engineering-roadmap-to-100-per-cent-renewables.pdf?la=en&hash=42E784478D88B1DFAF5D92F7C63D219D•GoyderRenewablesZone-RenewableEnergyforSouthAustralia(goyderenergy.com.au)https://goyderenergy.com.au/•UnlockingthepowerofoffshorewindMinisters(dcceew.gov.au)•AreainBassStraitoffGippslanddeclaredsuitableforoffshorerenewableenergy-DCCEEW•Australia’sfirstoffshorewindzonedeclaredNOPSEMA•RewiringTheNationToSuperchargeVictorianRenewablesPrimeMinisterofAustralia(pm.gov.au)•Australianstartupleadingthewayonnextgenerationsolarcells-AustralianRenewableEnergyAgency(ARENA)•CommercialisingSiPerovskiteTandeminAustralia-AustralianRenewableEnergyAgency(ARENA)•Clean-Energy-Australia-Report-2023.pdf(cleanenergycouncil.org.au)•https://www.energynetworks.com.au/resources/presentations/international-electricty-summit-2022-australia-background-paper/•executive-summary-report-for-the-otr.pdf(aemo.com.au)•engineering-roadmap-to-100-per-cent-renewables.pdf(aemo.com.au)AustraliaThisreportwasauthoredbytheAustraliaDepartmentofClimateChange,Energy,theEnvironmentandWaterincollaborationwithCleanEnergyMinisterial(CEM)workstreamssuchasthe21stCenturyPowerPartnership.ThecontenthereindoesnotnecessarilyrepresenttheviewsoftheCleanEnergyMinisterialworkstreamsorothercontributors,includinganyoftheparticipatinggovernmentsandorganizations,theCEMSecretariat,ortheU.S.DepartmentofEnergy.Nowarrantyisexpressedorimplied,nolegalliabilityorresponsibilityassumedfortheaccuracy,completeness,orusefulnessofanyinformation,apparatus,product,orprocessdisclosed,andnorepresentationmadethatitsusewouldnotinfringeonprivatelyownedrights.Referencehereintoanyspecificcommercialproduct,process,orservicebytradename,trademark,manufacturer,orotherwisedoesnotnecessarilyconstituteorimplyitsendorsement,recommendation,orfavoring.Ifyouwishtocitetheseslides,pleasefirstcontact:cleanenergyministerial2@dcceew.gov.auDISCLAIMERActionPlanforPowerSectorDecarbonisationAustraliaAUSTRALIA’SACTIONPLANFORPOWERSECTORDECARBONISATIONSandraChoyandHarrietGibsonDepartmentofClimateChange,Energy,theEnvironmentandWater(DCCEEW)Deliveredforthe14thCleanEnergyMinisterial(CEM14)July2023NREL/PR-5R00-86637

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