Jul 3, 2013 admin No Comments

The Australian Energy Market Operator (AEMO) has again reduced demand forecasts for the coming year and decade mainly due to the uptake of rooftop solar power systems being installed. Ergon Energy has also said that they will be reviewing the tariff system in Queensland.

According to RenewEconomy, the AEMO’s National Electricity Forecasting Report is reducing the demand forecast for 2013/14 by 2.4% across the National Electricity Market (NEM). The NEM covers all states except Western Australia and the Northern Territory.

The forecast for 2012/13 was also slashed by 10% in their last report and looks like the official figures have still come in a further 1% lower than their reduced forecast. The main reason stated for the reduction has been because of the increased uptake of solar power systems as well as increased energy efficiency regulations. “Individually, consumers are using less electricity than they used to,” AEMO CEO Matt Zema said.

The forecasted maximum demand has been cut by 728MW’s from last year’s figures which happens to be around the same as the forecasted amount of solar power installed in the last 12 months. It is also equivalent to a reasonable size coal fired power plant or several smaller gas peaking power plants designed to handle excess demand needed at peak times.

The following graph shows the forecasts and revisions between this year and last year. See RenewEconomy for further explanations on the forecasts.

AEMO-2013-forecasts 

Ergon Energy has also announced that they will be reviewing the tariff system in Queensland. They believe that many of their restructuring efforts will be implemented in 2014/15 with more changes to be implemented between 2015 to 2020.

“Over the last thirty years we have completely changed the way we use electricity in the home, in small business, on the farm and in manufacturing and industrial activities,” former Energy Minister Mark McArdle said. “It makes sense that we now need to reconsider these tariffs so they better reflect the needs of Queenslanders.”

The Greens are urging the Government to take solar energy into account. They are supporting those who have installed solar power and trying to make sure they will not be penalised under the new tariffs as well as pushing the new schemes to embrace solar electricity by including it in their plans.

“The government should ensure solar energy is a key element of its 30-year electricity strategy,” said Queensland Greens spokesman, Dr Charles Worringham.