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National Electricity Market

NATIONAL ELECTRICITY MARKET THE PROBLEM- Australians have the highest per capita greenhouse gas emissions among industrialised countries – about 29 tonnes per year Australia also has one of the most emissions intensive economies in the world - that is, the amount of emissions generated per dollar of GDP. Unlike most other developed nations, Australia's emissions intensity has actually increased in the last 20 years. Electricity generation is the single biggest source of emissions, contributing about 34 per cent of Australia's greenhouse gas emissions in 2005. This amounted to 261 billion kilowatt hours (TWh) 200 of electricity in 2009, 68% more than the 1990 level and growing at up to 3% per year. About one-fifth of this energy is lost before it get to consumers. Aluminium smelting, which is particularly energy intensive, uses about 10% of the remainder. COAL 78% NATURAL GAS 14% NEW 4.7% 3.3% RENEWABLES | HYDRO 78% of the power is produced from coal, 14% from natural gas, 4.7% from hydro; the rest is new renewables (mostly wind). About 20 per cent of network capacity is used to meet peak demand for the two or three hottest and coldest days of the year. GENERATOR DISTRIBUTION 40% COMPANY (POWER STATION) 40% 10% 10% TRANSMISSION RETAILER LINE COMPANY Australia has some of the cheapest electricity prices in the world, mostly because coal is cheap to mine and burn. Of the total bill, roughly 40 per cent goes to the generator (power station); about 10 per cent to the transmission line company; about 40 per cent to the distribution company; and the last 10 per cent to the retailer. %24 臺 晝 营 Prices are now escalating, due mostly to higher charges to distribution and transmission companies - not because of the cost of "green schemes." The companies say this is due to a combination of the need to replace ageing infrastructure and the need to build new "poles and wires" to meet increasing demand, especially during the summer and winter afternoon and evening peak demand periods. However, overall and peak demands have plateaued in recent years, due to a combination of lower economic growth, greater uptake of "time of use" contracts that charge customers more for their use during peak periods, and more interest and investment in energy efficiency. THE CONTEXT· About 90 per cent of electricity generated in Australia is moved through the national grid, aka the National Electricity Market (NEM), which runs from Port Douglas in far north Queensland to Port 90% Lincoln in South Australia. The NEM is controlled by a system (resulting from an and territories in 1995) overseen by complex national regulatory agreement between the states the Standing Council on Energy and Resources (SCER)9 and implemented through the National Electricity Law and Rules. The National Electricity Objective is "to promote efficient investment in, and efficient operation and use of, electricity services for the long term interests of consumers of electricity with respect to - of supply of electricity; and the reliability, safety and security of price, quality, safety, reliability, and security the national electricity system. Unlike comparable countries such as the UK, there are no environmental or social objectives, and the SCER has resisted attempts to introduce them. 製 一 子 There are two possible responses to rising demand for electricity: build more infrastructure to provide more electricity, or reduce demand, through a mix of increasing energy efficiency and demand management (reducing demand for electricity at peak times). The National Electricity Rules make it more attractive for "poles and wires" companies to invest in new infrastructure than to invest in energy efficiency and demand management solutions. This has resulted in excessive investment in infrastructure, which drives more demand for electricity and rises in electricity prices. THE SOLUTION While large-scale investment in renewable energy and a substantial price on carbon pollution are critical steps in the urgent transition to a low carbon economy, the "missing link" is the existing energy market, which can either help or hinder this transition. While the amount of off-grid renewable energy is increasing, it remains minuscule on the national scale. "Greening the grid" is a much more potent way to impact on Australia's greenhouse emissions. The drivers of a greener grid include new investment in renewable energy, "smartening" the grid to make it more responsive to consumer and environmental needs, improving the energy efficiency of appliances and machinery, and demand management. TEC focuses primarily on the last two of these drivers. Improving energy efficiency results in lower greenhouse emissions. The International Energy Agency estimates that about 60% of the reduction in carbon pollution required by 2050 will come from gains in energy efficiency. Demand management has indirect environmental benefits, by encouraging consumers to think about how and when they use appliances and equipment, and by discouraging over-investment in network infrastructure. TEC has been working since 2004 to "green the grid", especially by introducing an environmental objective in the NEM and changing the Rules to make investment in energy efficiency and demand management more attractive.TEC works to ensure that "poles and wires" companies seriously consider these alternatives before deciding to invest in expensive new infrastructure and applying for large increases in their regulated incomes. TEC has also supported other efforts to ensure that the NEM contributes CO2 to a reduction in the greenhouse gas emissions generated by fossil fueled electricity, to complement the introduction of a carbon price and the expansion of renewable energy generation. Green Electricity Watch This has included producing four annual Green Electricity Watch rankings, which make it easier for consumers to choose environmentally sound sources of electricity. We have also worked on state and national laws to require energy efficiency in the sector and CO2 reductions (eg the NSW Greenhouse Gas Abatement Scheme). %24

National Electricity Market

shared by billytrail on Sep 07
Australia is an industrialized country and one of those where greenhouse gas emissions have gone through the roof as much as 29 tons per year. In the last 20 years amount of emissions that are generat...



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