The Minister for Resources and Energy, Martin Ferguson AM MP, has highlighted the importance of Australia's energy market reform to date and the need to ensure investment continues to be delivered in a timely manner to maintain energy security and reliability.
Delivering the keynote address in Melbourne today at the launch of the Australian Energy Market Commission’s (AEMC) discussion paper, Strategic Priorities for Energy Market Development, Minister Ferguson said “Australia can be proud of our energy market reform achievements, however we cannot become complacent.
“The energy market reform agenda of the last two decades has largely been bipartisan and has delivered significant benefits to the Australian community. However we still face challenges.
“To achieve emissions abatement in the electricity sector in the decades ahead while meeting rising energy demand will require significant investment.
“The energy sector is extremely capital intensive and involves long lived assets, with Australia’s energy sector requiring $94 billion in capital in the next five years alone.
“We must ensure that we have the right market settings in place to bring on this required investment.
“Those settings must balance the objectives of delivering energy to the community that is both reliable and affordable.
“Today, we stand at the beginning of what will be a transformation in our energy sector as a carbon price is introduced. As this occurs I will be seeking an outcome that maintains energy security and reliability,” Minister Ferguson said.
In light of the challenges that growing peak demand is placing on the system, Minister Ferguson announced that the Ministerial Council on Energy has agreed the terms of reference for the Stage III Review of Demand Side Participation. This will enable the AEMC to extend and broaden its work to identify further opportunities for demand side participation.
Minister Ferguson reiterated the Government's commitment to finalise an Energy White Paper by the end of 2012. The White Paper will incorporate these issues and provide a framework to drive the next wave of energy market reforms.
The AEMC's discussion paper, Strategic Priorities for Energy Market Development is available at www.aemc.gov.au.