EUAA Submission: AER Review of Cost Benefit Analysis & RIT Application Guidelines
Emily Wood | June 5, 2024
‘…. The EUAA recognises that the ISP is (currently) a transmission transition plan to enable the replacement of coal fired power generation with Variable Renewable Energy (VRE). It is therefore appropriate that the ISP calculates the emissions reduction potential for both the proposed transmission network and the generators that will connect to it in the CBA. We assume that the intent of this is to ensure that projects that deliver the best combination of price, quality, safety, reliability and emissions reductions get built. Achieving the optimal combination of these objectives would be consistent with the National Electricity Objective (NEO).
It is important to highlight that “valuing” emissions reductions as part of the RIT or ISP should be pursued for the sole purpose of assessing the most credible option only that is consistent with the NEO. Apart from the recovery of project costs (cap ex, op-ex etc) no emissions reduction value or benefit should be available to the network operator…’
Please download attachment to read full submission.
