AEMO Inputs, Assumptions and Scenarios Report update

Publication date:
17 March 2021
Resource type:
Submission

PIAC responded to the Australian Energy Market Operator’s (AEMO) updated inputs, assumptions and scenarios report for the 2022 Integrated System Plan (ISP).

PIAC supports the changes AEMO has proposed, in particular those concerning emissions reduction and climate change assumptions, and the decision to remove the Diversified Technology scenario. We provide feedback on these changes, assumptions around hydrogen costs and potential for use domestically, and the new Current trajectory and Net Zero 2050 scenarios.

While PIAC supports AEMO removing the Diversified Technology scenario, we are concerned the inclusion of the low gas price sensitivity is unrealistic and risky. We recommend only modelling future gas prices which are likely to occur and which align with various climate targets and commitments in each scenario.

PIAC recommends against assuming higher domestic use of hydrogen, rather than just export use, in the Hydrogen Export scenario. PIAC does not consider this is a useful assumption as it is unlikely hydrogen will ever play a significant role in the domestic energy grid.

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