It is important that projects supported under the NSW Transmission Infrastructure Strategy undergo careful cost benefit analysis to demonstrate they will deliver value for the market, the Australian Energy Council said today.
The AEC’s Chief Executive Sarah McNamara said she understood the desire to fast-track transmission projects but that the investment case still needs to be carefully made.
“This is essential to both protect customers from unnecessary costs, and provide competitive industry confidence, as well as transparency in the way the network is developed.
“There is also a need, in an interconnected national market, to avoid state variations to the nationally agreed approach for transmission investment.
“The NSW Government’s strategy appears to be seeking to accelerate the initial stages of analysis for NSW projects but remains committed to a national process with respect to the investment case.
“The continued commitment to the national process is welcomed. It is important to maintain a stable and transparent process which occurs through the existing investment test.
“In that way we can minimise market investor risks and ultimately protect customers.”
About the Australian Energy Council
The Council represents 22 major electricity and downstream natural gas businesses operating in competitive wholesale and retail energy markets. These businesses collectively generate the overwhelming majority of electricity in Australia and sell gas and electricity to over 10 million homes and businesses.
Published in The Australian, 16 December 2021 By Sarah McNamara, Chief Executive, Australian Energy Council In mid-2020, the Australian Energy Council supported adoption of a Net Zero by 2050 target for Australia.
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