The Australian Energy Market Operator (AEMO) said Queensland will need additional investments for its power generation sector to meet the expected deficit by 2013 to 2014.

According to the 2011 Electricity Statement of Opportunities ((ESOO) Executive Briefing report published by the AEMO, Queensland is the first region to need investments in power generation to maintain reliability of its power grid.

Based on a medium economic growth, AEMO projects that Queensland during summer will have reserve deficit of 341 megawatts (MW) by 2013 to 2014. Its reserve deficit could reach up to 779 MW based on a high economic growth.

The report, however, noted that Queensland has received interest from power firms to put up generation projects to secure the region's power needs.

Included in the generation projects for Queensland are six natural gas-fuelled power stations comprising over 3,000 MW of potential capacity.

Of these gas projects, ERM Power Limited’s Braemar 3 will begin construction in January 2012.

Stanwell Corporation, meanwhile, has proposed constructing the 504 MW Wandoan integrated black coal gasification combined-cycle power station and the 37 MW Burdekin Falls hydroelectric power station.

Another proposed project is the 250 MW Solar Dawn project and the additional 44 MW Kogan Creek solar thermal project by CS Energy with construction to begin in 2013.

AEMO further reports that New South Wales requires additional generation investment by 2018 to 2019 due to a decrease in the maximum demand projections for the region.

Victoria and South Australia, on the other hand, require additional generation investment by 2014 to 2015 due to increase in demand.

Tasmania, meanwhile, is expected not to experience a reserve deficit within the 10-year outlook period at the time of either the summer or winter maximum demand.