Tuesday, April 10, 2018

Australian Energy Security Board Not On Track to Deliver Affordable Energy

Greetings from the Australian National University in Canberra, where Clare Savage, Deputy Chair of the Energy Security Board is speaking on the National Energy Guarantee. Clare said that the board would not be proposing technical reliability measures, be included in energy suppliers contracts, as this would be too complex. However, financial markets have far more complex traded commodities, so I can't see why this can't be done for energy. If reliability measures are not being provided as part of the market based energy system, then I can't see how they can be provided cost-effectively. If reliability is just a requirement imposed on providers we are likely to see a similar situation as with wires and poles, where companies overbuilt the system in the name of reliability, to push up prices to the consumer and thus increase profits. The Australian Energy Security Board is going down a path which will deliver reliable power, but it will be expensive power, with high carbon emissions.

The Australian Energy Security Board has to work within the constraints set by government. However, it should still be possible to design a system which will reward innovations in new technology which can deliver reliability, along with low emissions at an afford able price.  I suggest the Board change their approach to explore those options.

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