Winds of change: South Australian electricity market developments

LAB-14, Carlton Connect Initiative
700 Swanston Street, Carlton, VIC 3053


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Jen Drysdale

Over the past decade, the South Australian electricity market has undergone a dramatic change in the supply mix. Prior to 2005, energy generation needs were predominantly sourced from gas and brown coal powered generation. Since then, over 1500MW of wind capacity has been installed and 770 MW of brown coal capacity has exited the market. These developments have substantially reduced South Australia's greenhouse gas emissions, but also created challenges for the electricity supply industry. Publicly (see any recent issue of the Australian or Financial Review, for example), recent increases in electricity prices have often been blamed on the higher share of wind power.

In this seminar, we present an in-depth report that investigates the evolving dynamics in the wholesale electricity market in South Australia. In particular this report examines three main drivers for potential changes in wholesale prices: growth in renewable energy generation, increased gas prices and the impact of market concentration and competition issues. Options to mitigate the underlying causes for increased prices and volatility will be discussed.

This event is cohosted by Melbourne Energy Institute, the Australian-German Climate and Energy College and the Australian Conservation Foundation.

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