Origin Energy CEO Frank Calabria says Australia’s National Energy Guarantee (NEG) should support more ambitious carbon targets to reach net zero emissions by 2050.
Mr Calabria also told a Sydney business conference the boom in clean energy like solar power is bringing down electricity prices.
Energy markets are quickly filling the gap left by the anticipated closure of the Liddell coal-fired plant in NSW, he said. He added that Federal Government intervention in the energy market is therefore unnecessary.
According to Mr Calabria, Australian energy markets are well placed to bring in low cost renewables. He said Origin Energy is also committed to halving emissions in line with Australia’s Paris Agreement emissions goal.
NEG should commit to higher target: net zero emissions
The Origin Energy chief insists energy markets are able to cope with the rapid surge in renewable energy sources.
However, the NEG must provide the right framework to bring together energy and climate policies. This will then encourage investment in new sustainable supply.
NEG emission targets also need to aim higher than the current 26-28 per cent reduction by 2030, Mr Calabria told the conference. This is the bare minimum to which Australia should aspire.
According to Mr Calabria, we should be transitioning to net zero emissions in Australia by 2050 or earlier.
The nation also has plenty of brownfield opportunities to increase market flexibility and capacity. These could integrate battery storage in line with AGL’s plans for its Liddell power plant.
Energy customers hunting for better price deals
Market churn is increasing as customers switch energy retailers in the hunt for better prices, Mr Calabria says. New players are also entering the energy market.
He pointed out that Market churn subsequently exceeded 22 per cent in March 2018. This is up from around 19 per cent in December 2016.
Origin Energy is also facing stronger competition from companies like Alinta and smaller organisations, like the government-owned Snowy Hydro.
Because more consumers are discovering the benefits of renewables, solar panel installations plus home battery storage like the Tesla Powerwall are increasingly in demand.
