The Energy Security Board (ESB) published the draft Detailed Design for the National Energy Guarantee (Guarantee) for public consultation on 15 June 2018.
The Chair of the ESB, Dr Kerry Schott AO, said the draft Detailed Design provides the next level of detail about how the emissions and reliability components of the Guarantee mechanism are proposed to work in practice. It builds on the high-level design considered by the COAG Energy Council in April 2018.
“The ESB has benefited from deep and helpful engagement from stakeholders and considered expert input and is on track to present a final design to the COAG Energy Council in August 2018.”
To provide further detail on some of the technical elements of the draft Detailed Design, the Energy Security Board released a series of Technical Working Papers on 22 June 2018. The Technical Working Papers build on the issues papers released in May and feedback from stakeholders.
Dr Schott said that in order to improve affordability, they are proposing specific measures to ensure liquidity and transparency in wholesale electricity markets to strengthen competition.
“All State and Territory renewable energy schemes will be able to operate alongside the Guarantee and contribute towards achieving the emissions reduction trajectory for the electricity sector.”
However, the Smart Energy Council has called on the Queensland Government to make any support for the National Energy Guarantee (NEG) conditional on the Federal Government committing to a stronger national emissions reduction target.
Smart Energy Council Chief Executive John Grimes said while “the future of renewables is shining bright in Queensland, this could all come quickly crashing down if the National Energy Guarantee is approved in its current form”.
“Without a stronger national target to reduce emissions, the National Energy Guarantee will cheat Queenslanders and the whole of Australia out of more investment, jobs and cheap clean energy,” said Mr Grimes.
The Smart Energy Council is calling on the Queensland Government to only continue negotiations around the NEG if the following conditions are met:
- NEG must incorporate a legislated minimum 2% annual emission reduction set as the Emission Reduction Safeguard
- Federal Government legislates to reduce National Electricity Market emissions by at least 45% by 2030
- Existing state renewable energy targets are maintained
Submissions on the draft Detailed Design are due by 13 July 2018. The feedback received in response to the paper will help inform the Energy Security Board’s final design that will be considered by the COAG Energy Council at its meeting on 10 August 2018.