Energy Safety Board Chair Anna Collyer, the Commonwealth’s chief energy policy adviser, told the meeting about a “capacity mechanism” that would reward energy projects to ensure that energy supplies can be used. when needed, instead of paying them just for the energy they have. produce.
Credit: Matt Golding
The policy aims to encourage investment in so-called “enviable” energy projects, which include fast-start gas plants, large batteries and pumped hydraulics, but it has raised concerns among environmentalists and the Victorian government because it can also extend the life of fossil fuels in the energy market.
Speaking to the media after the meeting, Bowen said the capacity mechanism was “a matter of urgency” and that the Australian energy market operator would prepare a draft policy “imminently”.
He would not be attracted by the inclusion of coal in the capacity mechanism, or if states had disagreed on the issue, but said he thought the “principles are quite clear that should support new technologies.” which would mean hydraulic pump and batteries.
Last year, Victorian Energy Minister Lily D’Ambrosio said she was “drawing a line” under any market review that would result in payments to existing coal and gas generators just to be inactive but available.
Alinta, one of Australia’s largest energy companies and owner of the Loy Yang B coal-fired power plant in the Latrobe Valley, said on Wednesday that the severity of the East Coast energy crisis had led to the reform. ‘enter more urgently than the pre-scheduled start date. by 2025, and should be extended to coal-fired power plants.
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“Take it forward,” Alinta CEO Jeff Dimery said The age and The Sydney Morning Herald. “In today’s marketplace, the consequences for us of not being there are dire.”
Origin Energy CEO Frank Calabria has also called on ministers to consider introducing the capacity mechanism before 2025.
“I think these events, however serious, should remind us that we want to have more resilience in the system as we go through this,” he said.
“I understand that design is important … but I think they have to do it on the basis that as soon as this design and implementation is completed, investments can be made with confidence.”
Calabria said the capacity market should focus on new investments, but he was “happy.” [the inclusion of coal] to be in the debate ”.
Environmentalists said Wednesday’s announcement was as significant as “what’s not in it as it is.”
“There were no boondoggs for fossil fuel mates, no useless political wedges or cultural war coups,” said Environment Victoria CEO Jono La Nauze.
“Finally it looks like we’re having an adult conversation about the serious and urgent problem of the energy transition.”
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