Australia’s Chief Scientist Alan Finkel released the result of his review of the national electricity market. His report showed that the clean energy target (CET) prototyped by his review would lead to cheaper industrial and residential electricity costs. This, according to his review, is a much better option than leaving the present policy settings untouched.
Reputex patterned the effect of a CET that reduce emissions from the electricity sector by approximately 28 percent and one that is consistent with 2C of global warming. The latter is believed to decrease emissions from electricity by 45 percent below 2005 levels by 2030.
As a result, it was found that the two premises affected the wholesale prices to be reduced necessarily as opposed to taking no action at all. A report from The Guardian also stated that based on the study, “the more ambitious scenario resulted in lower wholesale prices between 2025 and 2030.”
The setting modelled with a CET lessened electricity emission by nearly 28 percent. The prices would also drop to less than $40 in 2023 and then increase to an estimate of $60 in 2030. It would also restrain prices by presenting more renewable energy, which will then keep costly gas generators from setting the amount of electricity in the wholesale market.
The report also highlighted that the national electricity market does not back conventional baseload generation anymore, which means that coal power plants would not be developed without the need of revising the market. “In this context, renewable energy remains attractive to the market given it is able to deliver energy reliability, with no emissions, at low prices. This affirms that renewables are a lay down misere to out-compete traditionally fossil-fuel sources in Australia for the foreseeable future.”
Read the full report here.