Nov 23 2016

Reports highlight challenge of Australian energy transformation

New analysis on South Australia’s energy market has reinforced the challenges of managing a relatively isolated, high intermittent grid, the energy industry said today.

The Australian Energy Council’s Chief Executive, Matthew Warren, said that the SA grid faced multiple security of supply issues, but warned that measures to address these would take time and require new investment that would flow through to customer bills.

The Australian Energy Council today released reports by ACIL Allen and EnergyQuest which explore a range of possible solutions to improve power quality in South Australia, and examined the impact of gas supply on SA electricity generators respectively.

“This analysis tells us there are no simple or quick fixes. It will be more expensive, not cheaper and will take time. This has always been the challenge of decarbonising our energy system.

“South Australia is an accidental experiment. We know we have to decarbonise our energy systems and these reports are telling us we need to look carefully at what the best approach might be.

“The current lack of coordination in energy policy in Australia also means that the challenges being faced by South Australia now are likely to become more widespread.

“There are a range of options available to policymakers. The design of renewable schemes and market structures more broadly, the range of tools available to the market operator to procure contingent system support services, reforms to encourage exploration for new gas supply and more liquid gas markets, as well as mechanisms for greater demand flexibility. All should be considered.

“But at the end of the day all of this needs to be underpinned by an enduring, stable and integrated climate and energy policy framework,” Mr Warren said.

 

Copies of the reports are available here:

Pioneering Australian Energy Transformation

South Australian Technical Challenges – Integration of Renewables

East Coast Gas Market Scenario and Implications for South Australia

About the Australian Energy Council

The Council represents 21 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.

Media contact             Carl Kitchen                0401 691342

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