Affordability is the key to ensuring public confidence and ongoing community support for the energy transition, which is now delicately balanced, according to the Chief Executive Officers of Australia’s major energy companies. A survey of the CEOs - Delivering Australia’s energy transition affordably – highlights the challenges in meeting the country’s energy and emission ambitions.
The energy transition is afoot Australian as governments commit to reducing emissions from the electricity sector by transitioning away from legacy coal generation towards a mix of renewable energy, storage and peaking generation. Maintaining electricity system reliability, security and affordability through this transition requires proactive long-term planning to ensure enabling infrastructure is developed when and where needed. This report considers the West Australian transition and the risks from any delays.
The Australian Energy Market Operator (AEMO) recently submitted a rule change proposal in Western Australia to amend the way its budget is set. The changes would have resulted in a shift from a fully regulated model to a NEM-like unregulated approach. Stakeholders raised concerns the proposed rule change would reduce transparency and accountability, and Energy Policy WA rejected the proposal last week. At the same time AEMO lodged its rule change proposal, the Australian Energy Council engaged Rennie Advisory to identify the root causes for what have become AEMO’s unpredictable and steadily rising costs. This report by Rennie Advisory looks at AEMO’s rule change proposal, identifies issues within the budget framework and offers some options that could be considered.
An energy transition is underway in Western Australia, led by State Government commitments and proposed policies that will shift the electricity sector towards more intermittent and low emission capacity. This Oakley Greenwood report provides a qualitative assessment of the challenges and bottlenecks of investing in new generation in the WEM, and the consequences if new generation cannot connect to the grid in a timely manner.
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