The National Electricity Market is facing its greatest crisis since inception. Everything seemed to be going swimmingly until a few years ago, when the cracks started showing. In the last twelve months it has morphed into a full blown disaster.
So what went wrong? Was this great enterprise to create markets out of monopolies destined to fail? Is the NEM market design so rickety that it needs a complete re-design? If so, what should it look like? Or does it just need a cosmetic makeover, with a few additional layers of rules, regulations and oversight boards, which is how the Finkel report can be interpreted?
Every commentator has views on these matters. IES’s CEO, Hugh Bannister, has another and he writes about them in this latest Insider. He focusses on just a few key elements; the proposed Clean Energy Target mechanism and two matters that Finkel touched only lightly or not at all – innovation in market development and market structure.