Managing the Transition: Balancing Competing Tensions
This is the first of a series of posts reflecting on Energy Week 2023. Daniel Westerman, Chief Executive Officer of the Australian Energy Market Operator (AEMO), recently delivered a speech at Australian Energy Week 2023 on the theme of managing the tensions inherent in Australia’s energy transition. Westerman began by outlining AEMO’s view of Australia’s energy transition, which is built on four pillars: low-cost renewable energy like solar and wind; energy storage and firming capacity; new transmission and distribution networks; and power systems able to operate fully on renewable energy. While there is broad acceptance of this vision, Westerman noted several uncertainties including cost of living pressures, supply chain issues and community reactions to large energy projects. Given these uncertainties, Westerman argued the transition must be carefully managed by balancing…