The current flurry of energy policy aims to make power cheaper and more reliable. But it will take more than that to meet vital longer-term goals like cutting carbon while keeping future prices low.
South Australia has unveiled its keenly awaited energy plan, featuring battery storage, a state-owned gas power station, and a thumb of the nose to the federal electricity rules.
Jeffrey Sommerfeld, Queensland University of Technology
South Australia is investing $550 million in a plan to improve the reliability of its electricity. But the side-effect is that the National Electricity Market will now be even harder to run.
Rising gas prices and energy security issues have led to calls for more gas to be pumped into our energy system. But we need to balance that with the equally pressing need to limit greenhouse emissions.
Here’s the real problem behind Australia’s electricity woes: the rules that govern decisions about what infrastructure to build, and when, are inflexible and outdated.
Privatisation and competition were supposed to make electricity cheaper. Instead, Australia’s quasi-federal energy system has made it easier to pass the buck when things go wrong.
The potential shutdown of Victoria’s Hazelwood power station could leave a large gap in coal-fired baseload generation. But other coal power stations have plenty of spare capacity to fill the gap.