{"id":12340,"date":"2017-06-12T06:36:22","date_gmt":"2017-06-11T20:06:22","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=12340"},"modified":"2017-06-12T13:12:30","modified_gmt":"2017-06-12T02:42:30","slug":"finkel-review-energy-mb0074","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/finkel-review-energy-mb0074\/","title":{"rendered":"Australia’s Electricity Blueprint For The Future – Finkel Review Report"},"content":{"rendered":"

\"Finkel<\/p>\n

What’s known as the “Finkel Review” was released on Friday, a document touted as a blueprint to optimise Australia’s ailing National Electricity Market (NEM).<\/span><\/p>\n

The Review Panel is headed by Australia’s Chief Scientist, Dr. Alan Finkel. Other members of the panel are Karen Moses FAICD ,Chloe Munro, Terry Effeney and Professor Mary O\u2019Kane AC.<\/span><\/p>\n

Recommendations made in the “Independent Review into the Future Security of the National Electricity Market” final report relate to three pillars – orderly transition, system planning and stronger governance.<\/p>\n

Among the recommendations:<\/p>\n

Clean Energy Target (CET)<\/h2>\n

The Review Panel arrived at a conclusion a Clean Energy Target would be the most effective mechanism to slash emissions while supporting security and reliability. It’s a very different beastie to a renewable energy target as it’s based on a “technology-neutral” approach that also involves non-renewable technologies such as gas and coal. The Panel says the target would provide incentives to encourage new generators.<\/p>\n

Giving Notice<\/h2>\n

Large electricity generators with facilities already operating won’t be able to just take their bat and ball and go home. They’ll need to give at least three year’s notice before shuttering facilities to allow for an orderly transition, both in terms of impacts on grid supply and employment.<\/p>\n

Security And Stability<\/h2>\n

New generators would be required to provide essential services to maintain voltage and frequency, plus guarantee supply when required.<\/p>\n

One Plan To Rule Them All<\/h2>\n

A system-wide plan would inform network investment decisions and security, including priotising of projects to support development of “renewable energy zones”.<\/p>\n

Energy Security Board<\/h2>\n

An Energy Security Board would drive implementation of the blueprint and report annually on the state of the electricity system.<\/p>\n

\u201cThe National Electricity Market is 5,000 kilometres long, spans five states and one territory and has more than 9 million metered customers. It\u2019s essential that we get it right,\u201d said<\/a> Dr. Finkel, who believes the blueprint will deliver a “world-class” electricity system.<\/p>\n

Implementation would see emissions reduced by 28% below 2005 levels by 2030, then towards zero emissions in the second half of the century.<\/p>\n

Under the blueprint, energy consumers will be financially rewarded if they agree to manage their electricity demand and share resources such as solar panels<\/a> and battery storage<\/a>.<\/p>\n

The authors state the recommendations would result in a reduced need for upgrades to transimission and distribution networks; reining in costs in that regard. Increased competition should also put downward pressure on electricity prices.<\/p>\n

This is no quick fix and while Dr. Finkel predicts some modest savings down the track for energy consumers, electricity prices will rise in the short term; and those rises will far exceed any future reduction. For example, In New South Wales, South Australia<\/a> and the ACT,<\/a> significant hikes will occur in just a few weeks time.<\/p>\n

Australia’s Clean Energy Council was generally quite positive about the report.<\/p>\n

\u201cThe CET and reforms put forward by the Chief Scientist have the opportunity to lead Australia\u2019s energy system into the 21st century,\u201d said Clean Energy Council Chief Executive Kane Thornton.<\/p>\n

However, Mr. Thornton expressed concern about some of the recommendations and how they may effect renewables; such as the proposed \u2018Generator Reliability Obligations\u2019 that he says “needs careful consideration to ensure they do not act as punitive measures that stifle innovation and unnecessarily drive up costs.”<\/p>\n

For detailed analyses of the Report and other reactions to it, RenewEconomy has run a series of articles:<\/p>\n