Australia’s electricity and gas transmission industry have strengthened their call for a market mechanism to drive orderly transformation in the energy sector, warning a lack of clear regulation will result in higher prices for consumers and a less secure grid.
Energy Networks Australia (ENA) says clear policy settings could ultimately save Australian energy customers $100B and allow a smooth transition, where large-scale variable renewable energy can be integrated securely, creating the prospect of Australia’s electricity sector and reaching zero net carbon emissions by 2050.
A new roadmap that was just recently released stated the energy market is in the middle of a profound transformation that will only intensify over the next 20 years.
The modelling produced in the report suggests that by the year 2050, up to 45% of Australia’s electricity supply could be provided by millions of distributed, privately owned generators in businesses and homes.
The report’s estimated $100B in cost savings is a function of governments rolling out consistent policies that would encourage the two parts of the system to work harmoniously together with the current poles and wires of the national market and the virtual grids in businesses and homes.
John Bradley, ENA’s chief executive stated that with stable policy settings, the networks could buy grid support from customers instead of building their own infrastructure. The report also suggested that by the year 2030, about 40% of generation will come from renewable technologies in Victoria and Western Australia, with an increasing share in New South Wales and Queensland as many coal generators are closed.
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