Call for submissions on design of National Energy Guarantee
The Energy Security Board has released a consultation paper on the National Energy Guarantee, seeking stakeholder views on the design of the Guarantee, which the COAG Energy Council will consider at its meeting in April 2018.
Chair of the ESB, Dr Kerry Schott, said the National Energy Guarantee is focussed on the key issues raised by the Finkel review; the need to improve system reliability, cut power prices; and reduce emissions.
“It’s an obligation on retailers to do two things – to make sure the energy they are purchasing meets emissions reduction targets for the electricity sector and to meet dispatchability requirements in each region.
“The National Energy Guarantee would integrate energy and climate change policy for the first time. This will give investors the much needed certainty they have been lacking over the last decade.
“Under the proposed mechanism, energy sector development could continue confidently with emissions and reliability objectives implemented in lockstep under the rules,” she said.
“The guarantee produces a clear investment signal so the cleanest, cheapest and most reliable generation gets built in the right place at the right time,” Dr Schott said. “It can also signal opportunities for demand response which may help reduce the need for costly new generation infrastructure.”
The Guarantee was considered by the COAG Energy Council at its last meeting in November 2017 which agreed that further development work and public consultation should be conducted.
“We are seeking feedback from stakeholders on the high level design of the mechanism’s reliability and emissions component,” Dr Schott said. “While the Federal Government will set the emission target itself we need stakeholder inputs on how contracting and compliance associated with meeting annual electricity emissions targets will work in practice.
“Reliability requirements will be set for each region across the whole power system, and we welcome contributions exploring the effectiveness of proposed incentives for investment in dispatchable energy and compliance arrangements.”
A stakeholder forum and webinar will be held on 26 February 2018. Submissions on the consultation paper are due on 8 March 2018.
The Energy Security Board will undertake further consultation and design work on the Guarantee following the COAG Energy Council meeting in April 2018, with the final detailed design to be presented to the COAG Energy Council later this year.
The ESB is chaired by Dr Kerry Schott AO, and includes Deputy Chair Clare Savage, Australian Energy Market Commission Chair John Pierce AO, Australian Energy Market Operator Chief Executive Officer Audrey Zibelman, and Australian Energy Regulator Chair Paula Conboy.
Further information is here.