The Energy Security Board (ESB) will hold a public webinar on the impact of the Federal Government’s National Energy Guarantee (NEG).
As well as welcoming industry stakeholders, the webinar is a public event “open to anyone with an interest in Australia’s energy future”. It will take place Friday, November 10 from 11am to 11.45am AEDT.
Dr Kerry Schott, Independent Chair of the ESB, will propose a NEG mechanism as outlined in the ESB’s advice to the government.
That advice included a recommendation to create a dual reliability and emissions guarantee. This will place a requirement on electricity retailers to:
- Meet their load obligations with a portfolio of resources which include a minimum amount of flexible dispatchable capacity; and
- Maintain an emissions level consistent with Australia’s international emissions reduction commitments.
Fossil fuels in the energy mix in the National Energy Guarantee (NEG)
According to the ESB, “This would allow both new and existing generation to meet the dispatchability requirement, and provide a greater incentive to maintain existing plant which is necessary for the secure and reliable operation of the power system.”
This means energy retailers will be able to use fossil fuels as long as they comply with government emissions standards. The Clean Energy Target, recommended by the Finkel Review will not be implemented. This could lead to a decline in large-scale solar installation, which depends on clear incentives from long-term government policy.
In its advice to government, the ESB acknowledges that Australia’s climate and size makes it an excellent operating climate for variable renewable resources. In addition, it says renewable resources are an important component of the low emissions power mix.
“However, the value of these resources to consumers is directly compromised if it results in unreliable and unaffordable electricity.”
Q&A with the Energy Security Board
Following Dr Schott’s presentation will be a live question and answer session. Stakeholders and members of the public will be able to submit their questions online during the webinar.
The webinar will also discuss the next steps towards a power system with reliable energy, reduced emissions and improved affordability.
The NEG is due to be considered at the next COAG Energy Council meeting in late November. If Ministers decide to proceed, broad consultation and detailed design will follow.
Anyone interested in attending the webinar on November 10 can register here.