INTERNATIONAL ENERGY POLICY INSTITUTE
The International Energy Policy Institute (IEPI) was created to address key policy issues in the mineral, energy and resources industries through intensive and innovative research.
MULLARD SPACE SCIENCE LABORATORY
The Mullard Space Science Laboratory (MSSL) is a world-leading research organisation delivering a broad science programme that is underpinned by a strong capability in space science instrumentation, space-domain engineering, space medicine, systems engineering and project management.
UCL Australia at ATSE 2013: Liberalised Electricity Markets and Long-term Capacity Adequacy
25 July 2013
Today, Professor Anthony Owen, Emeritus Professor of Energy Economics at the International Energy Policy Institute, presented at the Australian Academy of Technological Sciences and Engineering Conference (ATSE 2013: Nuclear Energy for Australia?) on ‘Liberalised Electricity Markets and Long-term Capacity Adequacy’.
Overview of the presentation
Current government policy in the electricity sector is primarily focused on policies to support the development and deployment of non-nuclear low-carbon technologies in order to reduce their costs and thus reduce the long-term cost of decarbonising the sector. However, the design of the National Electricity Market (NEM) may make low-carbon investment, including nuclear, riskier than continued investment in fossil fuel technologies. Thus, even with a carbon price, investment in low-carbon technologies may be discouraged.
A key question for the Commonwealth Government is whether to use targeted measures to reduce risk and ensure capital cost recovery for low-carbon investments, or whether to reform the NEM so that market-based policies can be incorporated into its structure. Failure to act may delay investment in a low-carbon technology future, thus raising the cost of de-carbonising the electricity sector.
The paper discusses the prospects for investment in high capital cost, low-carbon, technologies in liberalised electricity markets.
About the speaker
Prof. Owen is Emeritus Professor of Energy Economics at UCL Australia’s International Energy Policy Institute.