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Ensuring reliable electricity supply in Victoria to 2028: suggested policy changes

 

A report by VEPC Director, Associate Professor Bruce Mountain and Dr Steven Percy, VEPC Research Fellow

 

Ensuring reliable electricity supply in Victoria to 2028: suggested policy changes looks at whether markets and regulations will ensure reliable electricity in Victoria over the coming decade, and examines the power system to understand the effect of renewable electricity expansion, and the possible closure of Alcoa's Portland smelter.

The report recommends that the Victorian Government ask the Australian Energy Market Operator (AEMO) to develop an appropriate reliability standard and strategic reserve and that the Government prepares the administrative arrangements to implement this.

Download the report (2.3mb) by clicking on the image (left).

Renewable Electricity Generation Report

Does renewable electricity generation reduce electricity prices?

 

A report by VEPC Director, Associate Professor Bruce Mountain, Dr Steven Percy, Dr Asli Kars,
Adjunct Associate Professor Hugh Saddler and Farhad Billimoria

 

In Australia the contribution of “base load” coal-fired electricity generation and variable renewable generation in explaining high wholesale and retail prices is actively discussed. But modelling commissioned by governments and interest groups is contested. In this context the VEPC has examined the relationship between renewable electricity generation and electricity prices, and has released its research report “Does renewable electricity reduce electricity prices?”.

Commenting on the report’s findings, VEPC Director, Bruce Mountain said, “Dr Alan Finkel’s excellent review popularised the concept of a “trilemma”, suggesting that electricity policy needed to address trade-offs between decarbonisation, higher prices and power system reliability. But our research finds that renewable electricity generation brought prices down and is likely to continue to do so. In electricity there is no dilemma between decarbonisation and lower wholesale prices. System reliability and security must be prioritised in the transition to cleaner sources of power. But whether there is a dilemma between reliability and a cleaner power system remains to be seen. Policy makers of all persuasions need to take this evidence into account.”

Download the report (6mb) by clicking on the image (left).

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The National Energy Guarantee: decide in haste, repent at leisure

A critical assessment of the proposed National Energy Guarantee

 

A report by VEPC Director, Associate Professor Bruce Mountain

 

In October 2017, the Australian Government announced that it would not accept the recommendation of the Finkel Review to establish a Clean Energy Target. In its place, it proposed the National Energy Guarantee (NEG). The initial proposals were subsequently substantially revised in a “High Level Design” published in April 2018, followed by Issues Papers in May, Technical Working Papers in June and Final Design in July.

 

This report examines the “High Level Design” and its subsequent elaborations. The two “arms” of the NEG – the Emissions Guarantee and the Reliability Guarantee – address very different issues, and each is examined separately.

Download the report (1.7mb) by clicking on the image (left).

VEPC is part of the Victoria Institute of Strategic Economic Studies within Victoria University, Melbourne