A new report from the Energy Supply Association of Australia (ESAA) shows that renewable energy is making its mark in Australia. With increased investment, renewable energy is going to feature more and more in the Australian energy mix.
The report emphasises the difference in industry planning since 2007 when the carbon price was added to politics and the Renewable Energy Target (RET) was motivating investment in wind farms. It also says that new renewable and gas power stations account for more than 90% of planned energy investment. Wind farms made up half of all new large-scale generation investment in 2012-13, compared to just 11 per cent in 2002-03.
“The review shows a clear shift in industry thinking around 2007 towards planning for more renewable energy in the mix, which has only accelerated since the expansion of the Renewable Energy Target in 2009,” said ESAA’s chief executive, Matthew Warren. “One of the major effects of this increased supply of renewable energy in a shrinking national market is to suppress the wholesale price of electricity. The value of the national electricity market has shrunk by more than $4bn, or 40 per cent, in the last four years.”
The ESAA argues that pushing the wholesale prices of electricity down may not necessarily be a good thing as it makes life hard for energy suppliers and could have long term effects on reliability and stability. However, many also argue back saying that it is about time some power was taken away from them and that huge spikes in wholesale prices has been reduced in the recent months. Savings have yet to be passed on as we pay for ‘network costs.’ The ESAA states that lower wholesale prices may affect reliability and stability but also say that reliability improved in 2011/12 – according to the Australian Financial Review.
The ESAA report and public statement have shied away from comments blaming rooftop solar power systems for prices as their last paper – which was filled with myths about solar power – was heavily criticised.
Click here to access the ESAA’s Media Centre.