The Australian Energy Market Commission (AEMC) and the Climate Change Authority have released a joint Energy Policy report which makes a number of sweeping suggestions.
These suggestions aim to transform the current energy market by reducing electricity costs while growing renewable energy such as solar and enhancing power system security.
The recommendations effectively drew from two very different entities one which deals with emission reduction policy, the other with an inter-jurisdictional body to help gain a more complete insight into the Australian energy scene.
Despite these differing backgrounds however there is a consensus in the report, with the recommendations being supported by both organizations.
What does the Energy policy report say?
To begin the report sets out a clear aim as to what is to be researched and evaluated as well as the reports mission statement,
“… this report is intended to provide a platform to underpin the better integration of energy and emissions reduction policies in the future, to provide greater investment certainty and in doing so, help keep electricity prices as low as possible while enhancing power system security.”
The report then looks at Australia’s electricity emissions as well as other factors such as the price of residential electricity prices to help draw conclusions later on in the report.
As Dr Wendy Craik AM, the Authority Chair said in a news article in regards to the report,
“Uncertainty has a price. New analysis done for this report by the Centre for International Economics found that current wholesale electricity prices are above long-run costs by around $27 to $40 per megawatt hour.”
“Electricity prices could be lower than they would be otherwise if credible and durable policy is put in place to reduce emissions in the electricity sector,”
Impact of the report
The Government has said that this report will serve as an input into the independent review into the Future Security of the National Electricity Market being led by Professor Alan Finkel. The Finkel review will inform the Government’s 2017 review into climate policies.
The Authority also believes that although adopting the measures set out is important making sure that they are implemented correctly as well as meeting the three objectives of affordability, security and emissions reductions is paramount to their success.
