The states have been forced to act alone on renewable energy after the federal government effectively vacated the policy space. But if not managed carefully, the strategy may backfire.
The rules governing Australia’s electricity market are more than 20 years old and no longer serve consumers, or climate action. But big energy companies are using COVID-19 to delay reform.
The likelihood of half of Victoria being plunged into blackout are low – but the question reveals growing tension between the energy market and its regulators.
State renewable energy targets have been driving energy investment in Australia. ‘Where and when’ the generation and transmission build occurs varies substantially under a national approach.
Summer is here and the chance of blackouts is higher than normal. But the cause is unlikely to be the power station. The problem is usually much closer to home – in the local poles and wires.
The federal government is primarily to blame for the mess that is Australia’s energy policy. It’s time for the states to step up, to reduce both prices and emissions.
Sections of the media have talked up the prospects of future power outages, even though the electricity market operator predicts that Australia’s stringent reliability standards will still be met.
The Long Read: Most Australians’ power bills have been rising for a decade. There are many reasons why, but the common thread is a lack of government willingness to get to grips with crucial policy problems.