Australia faces unprecedented oversupply of energy, no new energy generation needed for 10 years: report
South-eastern Australia will not need to ramp up energy generation for the next 10 years, even under a worst-case scenario, a report says.
The Australian Energy Market Operator (AEMO) report says Australia is facing an energy glut never before seen in the history of the national electricity market.
It raises serious questions about the ongoing viability of existing coal-fired power stations, but might also result in more pressure on the Federal Government to reduce the Renewable Energy Target (RET).
Electricity use in Australia has been falling now for about four years due to the take-up of rooftop solar systems, greater use of energy-efficient appliances and the downturn in some manufacturing industries that use lots of electricity.
Just last week energy company HRL announced it would close a small coal-fired power station in Victoria's La Trobe Valley.
"It was one that was kind of earmarked for closure some three or four years ago but was propped up by some of the industry assistance measures of the previous Labor government," the Alternative Technology Association's Damien Moyse said.
Despite the oversupply, Australians have continued to pay more for their electricity.
"The prices have been rising because of the other parts of the cost of electricity, which is the cost of getting it from the boundary of the power station through the meters of all the individual consumers," Mr Sadler said.
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