Integrated System Plan should not be seen as a green light to overbuild our energy system…..again.
Emily Wood | July 17, 2018
The Energy Users Association of Australia (EUAA) welcomes the release of the Integrated System Plan (ISP) by the Australian Energy Market Operator (AEMO) and acknowledges that a greater level of centralised planning is required to deliver a least cost outcome for consumers. However, this least cost outcome will fail to materialise if it triggers another round of system gold plating.
“We agree with AEMO that we are in the middle of a fundamental change of our energy system and that a more coordinated approach to system planning and investment is required to ensure we build the most appropriate assets in the right place and at the right time,” said EUAA CEO, Andrew Richards.
“However, we would be very concerned if the ISP was seen as a green light to overbuild our energy system. We have been down that path before and consumers are still paying the price.
The ISP rightly points out that we will need to rely on existing power stations for some time to come but that new resources will need to be connected to replace ageing fossil fuel assets over the coming decades. This needs careful planning and identification of priority infrastructure to deliver the biggest benefits at the lowest cost to consumers.
“We know the transition will come at a cost but consumers will not accept higher bills, especially if they don’t see any benefit or if the process is confusing and opaque. The transition needs to be transparent, so that consumers can understand it and have a genuine say in setting the direction of our energy future.”
The EUAA supports the maintenance of the most efficient and economical of our existing power generation assets and believe that the National Energy Guarantee (NEG) provides opportunities for these fossil fuel power stations to play a critical role in low cost, reliable energy production.
“As we have said many times before. The NEG provides all technologies with a level playing field and we don’t believe specific support for mature technologies is warranted. The days of a consumer funded free lunch must come to an end.”
“Hopefully the ISP and NEG can work in harmony to guide us through this transition while maintaining system reliability, reduced emissions and lower energy costs.”
The EUAA is the peak body representing Australian industrial and commercial energy users. Our membership covers a broad cross section of the Australian economy including significant retail, manufacturing and materials processing industries. Combined our members employ over one million Australians, pay annual energy bills in the many billions of dollars and support the development of a lasting national energy and climate change plan that puts downward pressure on electricity costs.