The Independent Review into the Future Security of the National Electricity Market, or Finkel Review, has released a Preliminary Report. The Review, which was instigated by COAG Energy Ministers in October 2016 is to advise the government on a national reform blueprint for the National Electricity Market (NEM).
The Preliminary Report recognises the rapid changes that have occurred in the energy market, particularly in relation to wind and solar photovoltaic energy generation. It also recognises a decline in the demand for energy from the NEM with increasing energy efficiency and self-generation as well as a reduction in the consumption of energy from the industrial sector.
The Preliminary Report also identifies Australia’s transition to a lower emissions economy with energy generation being the largest single source of emissions. The Review aims to be a once-in-a-generation opportunity to reform the NEM providing resilience and enabling better services.
The Preliminary Report sets out observations and questions to guide consultation on the design of a new blueprint.
Seven key themes have been identified in the Report. These are:
- Technology is transforming the electricity sector
- Consumers are driving change
- The transition to a low emissions economy is underway
- Variable renewable electricity generators, such as wind and solar PV, cn be effectively integrated into the system
- Market design can support security and reliability
- Prices have risen substantially in the last five years
- Energy market governance is critical
The Preliminary Report also outlines a number of key questions. Submissions are welcomed in regards to these themes and their associated questions or to any of the more detailed questions that are contained throughout the Preliminary Report.
The public consultation process will include meetings to be held in Adelaide, Brisbane, Melbourne, Hobart and Sydney. The meetings include both public meetings and meetings with specific organisations.
The full report and information on the consultation sessions here.