APGA has cautioned the Federal Government against claiming significant savings on energy bills from its proposed National Energy Guarantee until the scheme’s details were worked out.
APGA Chief Executive Officer Steve Davies said media reports on the NEG modelling suggested that most of the projected cuts in power prices would be due to more renewable energy being added to the mix before 2020 when the NEG was proposed to begin.
“This additional renewable energy will increase supply, but it will come without the requirement for system stability that will be attached to energy generation under the NEG,” Mr Davies said.
“Delivering reliability while increasing the proportion of energy generation that depends on the weather means adding storage or additional rapid response generation and that comes at a cost.”
CoAG Energy Ministers meeting in Hobart tomorrow will be considering the NEG which the Federal Government has proposed to deal with the energy trilemma: making power affordable and reliable while lowering emissions.
“These aims are laudable and should be the prize any national energy policy strives for,” Mr Davies said.
“However, with the lack of available detail on the NEG, it is difficult to see how this could be achieved. Cutting costs while maintaining reliability and reducing emissions looks almost impossible in the short to medium-term.”
Read more in the Details needed on National Energy Guarantee media release.