The Australian energy Market Operator (AEMO) has released findings that that a changing economic landscape, a more energy-conscious public, the impact of rooftop solar photovoltaic installations and milder weather have all contributed to lower than forecast electricity demand across eastern and south eastern Australia.

 

“The drivers behind this change vary from state to state, however, it is becoming apparent that electricity consumers are changing their energy use in response to rising electricity prices, adopting energy efficiency programs and the installation of rooftop solar photovoltaic systems,” AEMO Managing Director and Chief Executive Officer, Mr Matt Zema said.

 

The projected reductions in forecast maximum demand have resulted in higher reserve conditions across all regions of the National Electricity Market (NEM) except for Tasmania.

 

“In Victoria, a lower forecast maximum demand is likely to result in a deferred Low Reserve Condition (LRC) – theoretically postponing the need for further investment in generation to maintain electricity supply reliability by a full year.”

 

“In light of what has been observed in the last seven months the estimated annual figure has been revised down from 202.6TWh to 192TWh for 2011-12 – a five per cent reduction in forecast annual energy across the NEM,” Mr Zema said.