AEMC Report Provides A Pathway To System Security

The final report, System security market frameworks review, released by the Australian Energy Market Commission (AEMC) today is a critical part of the transformation of energy markets and is welcomed by the Energy Users’ Association of Australia.

“We are pleased to see that the report details a number of rule changes that recognise and respond to the fundamental transformation of our energy market in a way that will protect system security in the most flexible and cost effective way,” said EUAA Chief Executive Officer, Mr Andrew Richards.

The proposed rule changes are supported by the findings and recommendations of the recent Finkel Review and are a critical step on the path to system security and reliability.

“As we move away from our traditional generation base to one that includes a higher percentage of variable generation, the need to ensure reliability and system security is critical,” said Mr Richards.

“The proposed rule changes recognise and respond to what is taking place in energy markets and provides the foundations that will enable us to use existing generation differently, avoiding the need to build infrastructure that may become obsolete. This is crucial to keep costs in check while also providing us with time to implement other complimentary, longer-term solutions such as pumped hydro and affordable, large scale batteries.”

While in principle electrons are all the same once they enter the market, being open about the different ways that energy sources integrate into our system is important to ensure that we can protect the integrity of the energy system.

“A system that cannot provide reliable and affordable energy fails the fundamental test that the market must work for the long-term interests of consumers.”

“We look forward to working with the AEMC and other stakeholders as they seek to implement these rule changes,” said Mr Richards.

EUAA members are companies that create, produce and manufacture critical items including food, packaging, healthcare and raw materials used in the Australian community every day.

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Media Contact: Emily Wood 0421 042 121