The Minister for Resources and Energy, Martin Ferguson AM MP, has welcomed a decision by energy ministers to accept a recommendation from the Australian Energy Market Commission (AEMC) proposing to implement a rule change aimed at facilitating the linking of more renewable energy generation sites to the power grid.
The 21st meeting of the Ministerial Council on Energy met in Hobart today and agreed to accept a proposal to amend Australia's electricity rules as recommended by the AEMC.
Ministers agreed that this proposal - together with the AEMC proposal to introduce inter-regional transmission charging arrangements - will encourage greater investment in infrastructure linking renewable energy generation sites to the existing power grid.As MCE Chair, Minister Ferguson welcomed these developments.
The MCE agreed with the AEMC's key finding that energy markets will generally be resilient to the challenges associated with the introduction of climate change policies but there was a need to refine existing frameworks to facilitate necessary investment.
Other outcomes emerging from today's MCE were:
- Agreement to the MCE response (including the two measures mentioned above) to the AEMC review of energy market frameworks in the light of climate change. Ministers noted the significant task facing energy markets in moving to a low-emissions future. Ministers reiterated the importance of transitioning in a manner that brings on the significant investment that is needed in energy infrastructure.
- Noting the significant investment required in coming years, Ministers agreed to monitor investment trends and examine energy market frameworks to identify any necessary refinements to market design.In this context Ministers are conscious of the vital role that the energy technology response will play in reducing greenhouse gas emissions.
- Ministers discussed the inputs that will influence future energy prices, noting ageing infrastructure, growing demand and climate change policies will require significant generation and network investment of both a capital and operating nature. Ministers noted price rises are expected in coming years and agreed to continue work to ensure transparency in pricing. Ministers also recognised the important role that a stable market framework and regulatory environment, and market-based price signals play in bringing on necessary investment.
Ministers agreed to progress implementation of the Final Energy Technical and Safety Harmonisation Plan.