The Australian Energy Market Operator (AEMO) is the main organisation that runs the electricity system or power grid, in Australia. AEMO does not cover some remote areas, and Western Australia and the Northern Territory use a separate grid.
Grid operators make sure the power grid works properly every day. This includes planning for the future, keeping the system safe and reliable, and making sure electricity flows where it’s needed.
Electricity created by energy generators is sent into the power grid within the local network. The grid connects lots of different areas so electricity can be shared between regions.
The key stages for making renewable energy and using it to provide electricity into an established grid are:
- Energy generators: create electricity from solar or wind farms. This electricity is then sold and distributed into the grid via transmission lines.
- Battery storage: large-scale battery operators can store power for later use. This is usually done when there is an oversupply – more energy than is needed at the time. The operators then sell energy back into the grid when it’s needed and prices are usually higher.
- Distributors: manage the movement of electricity through grid transmission and power lines and make it available for other users.
- Retailers: buy electricity from generators and sell it to users or customers.
- Customers: use and pay for electricity delivered through the grid.
The National Electricity Market (NEM) manages this system and is one of the biggest electricity systems in the world. It covers over 40,000 km of power lines and supplies electricity to Queensland, New South Wales, Australian Capital Territory, Victoria, Tasmania, and South Australia. The Northern Territory has its own system, and Western Australia's system is called the Wholesale Electricity Market (WEM).
