Friday’s energy ministers’ meeting showed that Australia’s transition to cleaner electricity is generally moving in the right direction – albeit with one important reservation regarding the backsliding on the principles of the National Electricity Market.Australia’s legislated 43 per cent by 2030 and net zero by 2050 emissions reduction targets next month, the federal and state governments have agreed to align energy and climate policy.
But with regards to the energy security side of the NEG, state governments are now set to go it alone on shoring up the reliability of the grid as more renewables push out the remaining coal-fired plants capable of generating dispatchable power., separating the emissions cutting and energy security obligations in the NEM market rules sounds the death knell for the national capacity mechanism.
And what, in practice, will be the back-up generation plan while waiting for big batteries, pumped hydro and Snowy 2.0 to come online?to keep the Yallourn coal-fired power plant firing. In June, the ESB identified Victoria, with its gloomy weather, as the state most vulnerable to a European-style “renewables drought” on low wind and solar radiation days in winter.
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