Presentation to the EUAA’s South Australian Energy Forum on 19 October

Events in recent months in South Australia have focused government and industry attention on how the cost and security of electricity supply are being affected by the push to renewables.

Our CEO, Hugh Bannister, joined with the South Australian Energy Minister and other senior industry people to review these issues during this forum in Adelaide on 19 October.  Hugh’s presentation concluded with some policy options that could improve outcomes in future.  While there are solutions to the problems that have been highlighted in South Australia in recent months, they do require a focused policy response.

Hugh’s presentation can be downloaded here. 

In his presentation, Hugh particularly emphasised the desirability of improving the balance between renewable targets and emission pricing, developing innovative markets in newly critical services such as inertia, suitably co-ordinated with energy market pricing, and the fundamental importance of storage technologies if non-dispatchable renewables are to be pushed much beyond current targets. Using real market data, his analysis suggested that solar may be a better fit to the market than wind if renewables are to be further pursued, as solar is more reliable nationally and more easily supported with storage.

Clearer guidance from the AER on distribution network pricing is also required to ensure that distribution network pricing does not work against the need to encourage storage technologies.

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