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| The Turnbull government's new power review should have been expanded into climate change, says energy experts. Phil Carrick |
The Turnbull
government's review of energy security is duplicating existing inquiries
but missing a key piece of the puzzle – the nation's climate change
policies, according to energy experts.
State and federal ministers on Friday agreed to establish the new independent review headed by chief scientist Alan Finkel – which will deliver its preliminary report before Christmas – in the wake of the disastrous blackouts in South Australia last month.
But experts said there were already multiple reviews on the National Electricity Market being done by the Australian Energy Market Operator, Australian Energy Market Commission and the Australian Energy Regulator looking into energy security and adapting rules to deal with the influx of renewable energy. The missing piece of the puzzle is how to marry this to climate change policy.
"This is really a review of the reviews. I don't think it makes sense to do a review of the NEM without including climate change policies," Grattan Institute energy program director Tony Wood told The Australian Financial Review.
State and federal ministers on Friday agreed to establish the new independent review headed by chief scientist Alan Finkel – which will deliver its preliminary report before Christmas – in the wake of the disastrous blackouts in South Australia last month.
But experts said there were already multiple reviews on the National Electricity Market being done by the Australian Energy Market Operator, Australian Energy Market Commission and the Australian Energy Regulator looking into energy security and adapting rules to deal with the influx of renewable energy. The missing piece of the puzzle is how to marry this to climate change policy.
"This is really a review of the reviews. I don't think it makes sense to do a review of the NEM without including climate change policies," Grattan Institute energy program director Tony Wood told The Australian Financial Review.
"Sadly, the [Finkel]
review's terms of reference fail to recognise the elephant in the room –
the absence of a federal policy to reduce electricity emissions in line
with Australia's committed 2030 target."
The Turnbull government
has committed to a 2017 review of its Direct Action climate change
policies, including the $2.5 billion Emissions Reduction Fund and
so-called safeguard mechanism for big polluters.
But Mr Wood said the pace of change in the NEM, including problems with the integration of renewables into the nation's energy mix, meant the Turnbull government should consider bringing the review forward.
Other energy observers believe last Friday's "extraordinary" Council of Australian Governments energy council meeting was more about political positioning than genuine action.
The agenda for the meeting, including looking at battery storage, interconnectors and issues arising from more solar and wind projects in the NEM, was essentially the same as the last COAG energy council meeting in August.
But Mr Wood said the pace of change in the NEM, including problems with the integration of renewables into the nation's energy mix, meant the Turnbull government should consider bringing the review forward.
Other energy observers believe last Friday's "extraordinary" Council of Australian Governments energy council meeting was more about political positioning than genuine action.
The agenda for the meeting, including looking at battery storage, interconnectors and issues arising from more solar and wind projects in the NEM, was essentially the same as the last COAG energy council meeting in August.
Kobad Bhavnagri, head
of Australia for Bloomberg New Energy Finance, said the fact energy
security had become a paramount concern for federal and state
governments demonstrated "the cost of nearly 10 years of shambolic
energy policymaking".
"Renewables undoubtedly make system management more complex. However, opposing or limiting the uptake of renewables is, in our view, a retrograde response, which ignores the imperative to decarbonise," he said.
Mr Bhavnagri said the energy sector was concerned Prime Minister Malcolm Turnbull had used the aftermath of the South Australian blackout to attack state-based renewable targets saying it had re-politicised the debate.
"Notwithstanding the cause, the statewide blackout shows the need for management of the electricity system to evolve. Instead, work needs to be done to evolve and improve the current system to facilitate technological change," he said.
Bloomberg New Energy Finance's report on the SA blackout found that while the focus has been on wind power disconnecting from the grid, fossil-fuel generators also failed.
"The two back-up generators that are paid to provide emergency power to restart major suppliers failed. Notably, the fact that these fossil-fuelled facilities failed to provide reliable supply and fulfil their primary function has received little media scrutiny," it found.
"Renewables undoubtedly make system management more complex. However, opposing or limiting the uptake of renewables is, in our view, a retrograde response, which ignores the imperative to decarbonise," he said.
Mr Bhavnagri said the energy sector was concerned Prime Minister Malcolm Turnbull had used the aftermath of the South Australian blackout to attack state-based renewable targets saying it had re-politicised the debate.
"Notwithstanding the cause, the statewide blackout shows the need for management of the electricity system to evolve. Instead, work needs to be done to evolve and improve the current system to facilitate technological change," he said.
Bloomberg New Energy Finance's report on the SA blackout found that while the focus has been on wind power disconnecting from the grid, fossil-fuel generators also failed.
"The two back-up generators that are paid to provide emergency power to restart major suppliers failed. Notably, the fact that these fossil-fuelled facilities failed to provide reliable supply and fulfil their primary function has received little media scrutiny," it found.
AEMO's preliminary review of the SA's "system black"
found the destructive storms critically damaged the state's
transmission network, but it has yet to find the reason why this
triggered a statewide blackout.
Meanwhile, SA network company Electranet said the restoration of damaged transmission lines in the state's mid-north was nearly complete. The delays had caused major headaches for big industrial users, including BHP's Olympic Dam mine.
ElectraNet said it expected one of the damaged circuits will be back up by Monday, provided weather conditions remain stable. Another circuit will follow a few days later.
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Meanwhile, SA network company Electranet said the restoration of damaged transmission lines in the state's mid-north was nearly complete. The delays had caused major headaches for big industrial users, including BHP's Olympic Dam mine.
ElectraNet said it expected one of the damaged circuits will be back up by Monday, provided weather conditions remain stable. Another circuit will follow a few days later.
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