IEEFA's response to Energy Security Board Post 2025 Market Design
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Key Findings
It is a simple fact that the energy transition as it will occur in the National Electricity Market will come at a substantial cost, but it is inevitable.
Our separate analyses all point to a terminal decline in the economic viability of the now technologically-obsolete concept of ‘baseload’ thermal coal and gas generation in the coming decade, therefore building out replacement capacity ahead of time is urgent.
Market price signals that incentivise distributed energy resources, and therefore contribute to grid stability and lower prices, should be introduced without delay.
Behind all of the challenges facing the national electricity market is the national imperative of shifting to a low cost, renewables-based net zero emissions economy. Even bigger challenges will emerge if we delay.
Overview
IEEFA is grateful for the opportunity to respond to the Energy Security Board’s consultation paper, Post 2025 Market Design, released in September 2020.
Rapid ongoing technological change is creating a serious impediment to the efficient functioning of the National Electricity Market (NEM).
IEEFA agrees with the ESB’s assessment of the inadequacy of the existing NEM design to meet the requirements of consumers and market participants, both now and into the future.
From the perspective of a market observer, IEEFA is pleased to offer high-level responses to selected questions in the consultation paper.
