STATEMENT: Australian Government Energy Announcement

Chief Scientist Dr Alan Finkel has made a statement on the Australian Government’s energy announcement.

17 October, 2017

1) The electricity Review that I chaired proposed an orderly transition (Recommendation 3.2) to achieve the key outcomes of increasing security and reliability, affordability and lowering emissions. I am pleased that the Australian Government asked the Energy Security Board to provide advice on this matter. The Energy Security Board was one of the key recommendations from our Review. Consisting of the energy market regulators and an independent Chair and Deputy Chair, it is the country’s most authoritative voice in energy matters.

2) I know from consultations with the Energy Security Board in the later stages of the development of the new proposals that the process was thorough.

3) The orderly transition proposed in our Review consists of three parts.

4) Success of the proposed emissions and reliability guarantees in the National Energy Guarantee will depend on extensive consultation by the Energy Security Board with all market participants.

5) Given that the existing operation of the National Electricity Market is managed by the Council of Australian Governments (COAG) through the National Electricity Laws, it is appropriate that the integration of the entry of new low emissions generation into the market is managed through the same laws.

With the adoption of a process for an orderly transition, Australia will be able to strategically manage its electricity supply for maximum benefit.

Dr Alan Finkel

Australia’s Chief Scientist