The Australian Energy Market Commission (AEMC) today published a Scoping Paper for the Review of Energy Market Frameworks in light of Climate Change Policies.
The Scoping Paper is the first of three planned consultation documents before the AEMC provides its Review findings to the Ministerial Council on Energy in September 2009. The purpose of the Review is to test whether energy market frameworks should be amended to accommodate the CPRS and expanded RET efficiently into the existing electricity and gas markets.
AEMC Chairman, Dr John Tamblyn, said that "Australia's energy markets are well designed and functioning to internationally respected standards".
"The introduction of explicit pricing of carbon emissions (CPRS) and a more ambitious target for the contribution of renewable generation (expanded RET) will have a big impact on the operation of the existing electricity and gas markets. Particularly as our demand for electricity is currently reliant on carbon intensive coal fired generation".
Our Stakeholder Advisory Committee has helped identify a range of potential issues for the Review. We now want to test that whether we have identified the range of issues with a wider range of stakeholders. This will allow us to focus the Review on those issues that are most material.
The scoping paper contains eight priority issues and provides a range of questions to be addressed in consultation with stakeholders. The key issues are:
- Convergence of gas and electricity markets
- Generation capacity in the short term
- Investing to meet reliability standards with increased use of renewables
- Operating the system with increased intermittent generation
- Connecting new generators to energy networks
- Augmenting networks and managing congestion
- Retailing
- Financing new energy investments
Submissions on the Scoping Paper close on 14 November 2008.
For information contact
AEMC Chairman, John Tamblyn 02 8296 7800
AEMC Communication, Prue Anderson 02 8296 7800 or 0404 821 935