Renewables target likely next step for power market, experts say

Big energy companies thought designing the ESB for a capacity mechanism was complex and could drive up prices, while clean energy companies thought it would extend the life of coal and gas.

Ms Schott, chair of the NSW government’s Net Zero Emissions and Clean Economy Board, said the other key outcome of Friday’s meeting – integrating emissions reductions into the national electricity target – would likely require a renewable or clean energy target for the electricity sector. .

Renewable energy objective

This would ensure that any initiative to increase capacity as coal and gas leaves the grid would be associated with the Albanian government’s new 43% emissions reduction target by 2030 and the 82% target of renewable energies by the end of the decade.

“I think they will probably agree on an emissions target, which will effectively be a renewable energy target,” Ms Schott said.

“If you look at national and state emissions targets, they’re not that far off. There is a need for a surge in renewable energy, particularly in the large states of NSW, Victoria and Queensland.

Ms Schott said coal would likely be the big loser of any program because it simply could not stay in the game as long as emissions reduction targets were increased.

Dylan McConnell, a research fellow at the University of Melbourne’s Climate and Energy College, said Friday’s energy meeting was a “pretty stunning rejection” of the BSE’s proposed capacity mechanism.

Climate Change and Energy Minister Chris Bowen said it made sense to make reducing emissions a key goal for the electricity market. Alex Ellinghausen

“What you might end up seeing is states going their own way on coal shutdown, but a more consistent approach at the national level with whatever comes next in terms of incentivizing capacity,” he said. -he declares.

“Although the inclusion, or not, of the gas may make it difficult to reach consensus on a new mechanism.”

Grattan Institute energy program director Tony Wood said it seemed inevitable that there would be a need for a separate mechanism to reduce emissions in the electricity sector.

“The target could be achieved by recasting the existing renewable energy target into a clean energy target to work alongside any capacity mechanisms emerging from the work of senior officials,” he said.

“A less direct, but less politically difficult, approach would be to impose the emissions target as a constraint on the capacity mechanism.”

“Finally arrived”

Mr Wood said politicians were clearly frustrated with ESB’s slow pace of work on the capacity mechanism, saying at least politicians and bureaucrats would drive not just its delivery but also the end result.

Energy Minister Chris Bowen said it was ‘bizarre’ that the electricity sector, which accounts for 33% of Australia’s carbon emissions, did not already have a reduction target shows.

“It will certainly make transmission easier, will certainly make it easier for energy companies to make sensible decisions about renewables,” he told the ABC. Insiders program on Sunday.

“It puts him [emissions reduction] at the heart of their [regulator’s] decision making. This should have happened a long, long time ago and it finally happened under a new government.

Mr Bowen said he would publish a discussion paper on the Albanian government’s planned overhaul of the Safeguard Mechanism, which requires large emitters to keep emissions below historic levels.

“You are not reducing your emissions if you are not reducing the largest emitters covered by the facilities of the safeguard mechanism,” he said.

Leave a Comment

Your email address will not be published.