ENA is the peak national body for Australia's energy networks; and represents gas distribution and electricity network businesses on economic, technical, environment and safety regulation as well as national energy policy issues. The Ministerial Council on Energy (MCE) has requested a review by the AEMC into the capacity of Australia's energy market to accommodate the Federal Government's Carbon Pollution Reduction Scheme (CPRS) and Renewable Energy Target (RET).
"The AEMC review will give industry the opportunity to state what is critically important to investment and capacity for Australia's energy networks, which are valued at $50 billion and increasing", said Energy Networks Association, Acting CEO, Michael Kilgariff.
"The Garnaut Climate Change Review found that energy network infrastructure needs to be well-integrated with the capacity to cope with potentially large shifts in energy flow and structural change following the introduction of an emissions trading scheme. The CPRS Green Paper released in July 2008 noted that the AEMC may need to review existing energy market frameworks to continue Australia's history of secure energy supply.
"A key step in ensuring energy infrastructure plays this role will be the future recognition by the Australian Energy Regulator (AER) of all the costs and risks faced by networks in making the required structural changes.
"Some of the costs to energy networks will be extending the network to reach renewable energy resources such as wind farms and lower emissions generation such as gas fired power plants, while at the other end of the network, households will be generating their own power for the grid.
"Gas and electricity networks are planning for a changing future under the new climate change obligations as well as the increasing demand for energy, but they need to be assured that increased costs can be accommodated within the regulatory framework.
"Network businesses should not be expected to wear unreasonable costs, as this imposes greater risk and uncertainty on network investment, which will ultimately have an economic impact.
"ENA is preparing a report on The Impact of Climate Change on Energy Network Infrastructure which will be released at the end of September 2008. The report will present the challenges, potential solutions and policy options for adapting and modifying new and existing network infrastructure to climate change and how best to inform governments, regulators and policy makers of solutions to abating network related emissions.
"Network businesses want to be assured that they are able to adopt the most efficient and effective options for delivering secure, reliable and clean energy that underpins the Australian economy", Kilgariff said.
