The Australian Energy Market Operator (AEMO) says energy use across eastern and southeastern Australia will drop over the next 10 years, making short-term investments in bolstering Australia’s network capacity unnecessary.
Lower industrial energy use, more rooftop solar power systems, and a behaviour change among consumers responding to rising electricity prices, accounted for a 2.4 per cent drop in annual energy consumption for 2011-12, says AEMO in its annual forecasting report.
The 2012 National Electricity Forecasting Report (NEFR) says energy will grow 1.7 per cent annually over the next 10 years, down from the previous 2.3 per cent forecast.
The reduced energy forecast was also consistent with moderate short-term GDP figures and the wake left by the global financial crisis.
The reduction in manufacturers’ energy consumption is largely seen as a response to the high Australian dollar. An increase in cheap imports is expected to put further pressure on manufacturing growth.
Substantial growth in rooftop solar power systems had been bolstered by generous government incentives, such as feed-in tariffs that reward users for generating their own power, with South Australia having the highest market penetration.
“Consumers have responded to price increases and taken advantage of government feed-in tariffs by installing rooftop PV systems and adopting energy efficiency measures, and that has reduced the amount of energy supplied by the electricity grid,” said AEMO Managing Director and Chief Executive Officer Matt Zema.
Small-scale solar energy generation will continue to grow and is estimated to account for 3.4 per cent of annual energy consumption by 2021-22.
AEMO operates Australia’s power system and electricity market, with a primary focus on ensuring the energy supply will meet the public’s demand, within the network’s capacity.
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