Significant changes in NEM capacity and demand over the last 10 years
Prior to AGL’s acquisition of Macquarie Generation in 2014, Macquarie Generation (then owned by the NSW Government) put forward a plan in 2009 to expand generation facilities in NSW by developing Bayswater B power station.
Since the time of that proposal in 2009, the National Electricity Market (NEM) has changed significantly. At that time, AEMO was forecasting significant year-on-year increases in NEM peak demand and overall NEM consumption, following the trend of demand and consumption increases since the inception of the NEM in 1998.
In 2009, the NEM was also experiencing a period of tight supply. In fact, in the summer of 2008-09, actual NEM demand exceeded AEMO’s forecasts due to some periods of particularly hot weather. As a result parts of the NEM subsequently experienced load-shedding events (interruptions to electricity supply).