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Australia is rich in renewable energy resources such as wind, solar and geothermal. Geographical diversity of these renewable resources combined with developing climate change policies poses a great challenge for the long term interconnection planning. Intermittency of wind and solar potentially driving the development of new transmission lines bring additional complexity to power system operations and planning. This paper provides an overview of generation and transmission planning studies in Australia to meet 20% renewable energy target by 2020. Appraisal of the effectiveness of dispersed energy storage, non schedulable peaking plants, wide area controls and demand management techniques to aid the penetration of renewables is presented in this paper.