A paradigm shift in energy
policy signals 'good' energy
12 May 2017
Aurecon: According to Dr Alex Wonhas,
Aurecon’s Managing Director, Energy, Resources & Manufacturing, the
policy direction outlined in the 2017-2018 Australian
Federal Budget
marks a distinct move away from a long-standing and bipartisan market
led approach to energy to one of targeted direct intervention and
government investment in the energy sector.
“The 2017 May Budget contains a number of measures aimed at improving
the affordability and reliability of energy in form of investment in
infrastructure and institutions,” he said.
The Government has reaffirmed its commitment to invest in
Snowy Hydro
2.0 and to potentially buy a greater share or even obtain outright
ownership from
NSW and Vic, who currently own 58% and 29% respectively.
The Government has also made a promise to retain Snowy Hydro in public
ownership.
Dr Wonhas said that the 2017-2018 Australian Federal Budget foreshadows
investments in other new generation such as a
solar thermal plant at
Port Augusta, transmission and storage infrastructure, as well as a $90m
energy security plan.
“It is true that the areas identified by Government are likely to
require future investment. Further detail regarding the energy security
plan will be eagerly anticipated by the industry,” said Dr Wonhas.
“In order to improve its energy security, Australia will need to find
cost effective ways to store or transport energy from where and when it
is produced to where and when it is needed as energy supply will become
increasingly variable through the expected uptake of renewable energy.
“The growth of wind and solar will become less and less dependent on
subsidies as these technologies have now reached the tipping point of
becoming cost competitive with new built conventional power stations.
“Many technologies already exist to balance supply and demand, including
batteries, pumped hydro, improved transmission networks and demand-side
responses.”
“If the Government aims to make these investments without spending
unnecessary funds, it will be crucial to obtain ‘proven business cases’
for each investment that compares this particular investment with all
key alternatives,” Dr Wonhas said.
“For Snowy Hydro 2.0, a feasibility study is expected to be completed
before the end of the year, and construction can commence soon after. It
is likely that investment can only be secured once those business cases
have been prepared.”
--ENDS--
Source: Aurecon - www.aurecongroup.com
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