Dec 12 2016

Transmission Planning Needs To Follow National Energy Strategy

New interconnectors could increase costs and reduce reliability if they are not part of a national energy and climate strategy, the energy industry said today.

The Australian Energy Council’s Chief Executive, Matthew Warren, said that the benefits of new interconnectors would need to be carefully assessed against potential risks. 

“In the absence of a national climate and energy strategy, it is difficult to predict what conditions a new interconnector will be dealing with in 10 years, let alone by the end of its working life. 

“These are 50 year assets that have material impacts on generation at both ends of the line. The risk is they increase costs without necessarily solving the system security problem they were meant to fix.

“The energy industry is not opposed to the increased use of interconnectors, and believes they can play an evolving role in a decarbonised Australian electricity grid of the 21st Century.

“But we have to consider them as part of a broader strategy to transform our electricity system, particularly given the relative cost is high because of our long distances and relatively small participating markets,” Mr Warren said.

 “Without a national energy plan a new SA-NSW interconnector could increase carbon emissions as gas-fired generation in South Australia is replaced with higher emissions coal-fired generation. This could accelerate the closure of firm generation in SA, while pushing up energy costs for NSW consumers.“


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 691 342

Related News


Australian Energy Council congratulates Daniel Westerman

The Australian Energy Council congratulates Daniel Westerman on his appointment as CEO and Managing Director of the Australian Energy Market Operator.

Feb 10 2021

New data shows solar shines despite lockdowns

Rooftop solar installation grew by 18 per cent nationally over the last year, according to the Australian Energy Council's latest Solar Report, which showed record growth in solar PV capacity and installations during 2020.

Feb 04 2021

Australian Energy Council congratulates Chris Bowen and thanks Mark Butler

The Australian Energy Council congratulates the Hon Chris Bowen MP on his appointment as Shadow Minister for Climate Change and Energy and thanks the Hon Mark Butler MP for his extensive work in the portfolio.

Jan 29 2021
Do you have a question or comment for AEC?

Send an email with your question or comment, and include your name and a short message and we'll get back to you shortly.

Call Us
+61 (3) 9205 3100