Inadequate preparation for the energy transition and years of ad-hoc political interventions have badly damaged Australia’s electricity market, leaving governments little choice but to keep cutting deals to prop up coal-fired power plants to avoid price rises and blackouts.
“Governments have lost faith in the market being able to deliver enough electricity to the right places at the right time, consumers are fuming about high power prices, and investors have been spooked by frequent and unpredictable government interventions.” “I also wouldn’t be surprised if the government does something with Loy Yang B in Victoria,” he said.
In addition to ensuring a smooth transition away from coal, adding more renewable energy to the grid is also a key plank of state and federal targets to reduce the output of planet-heating greenhouse gas emissions. Wood said the 2018 ditching of the National Energy Guarantee was a prime example of the energy chaos that contributed to the lack of preparation for coal plant closures.
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