The peak body for electricity generators and retailers, the Australian Energy Council has welcomed the release of the Climate Change Authority's Sector Pathways Review which supports the need for a whole of economy effort to reach Australia's net zero ambitions.
The Council's interim Chief Executive, Ben Barnes, said, "the Review underscores the oversized role the electricity sector is playing and will continue to play in Australia's decarbonisation efforts. As one of only two sectors on track to be net zero by 2050, it remains critical that we keep the momentum and get the transition to renewables right.
"On that front, it is pleasing to see the Review recognises the critical need for additional gas firming to complement renewable generation, alongside policy incentives to help commercialise long duration storage solutions. We expect these policy questions to be part of the upcoming review of the National Electricity Market arrangements.
"Government mechanisms like the Capacity Investment Scheme are an important kick-starter to accelerate renewable deployment, but in the long run we need to find a way to allow government to step back and let market forces support the best way forward. An independent stand-alone review will be vital to achieving this.
"We need to also keep our options open to ensure we identify the best solutions for a future electricity market that will be a critical enabler of whole-of-economy decarbonisation.
"The Sector Pathways Review reinforces the importance of not just electricity decarbonisation and greater electrification, but also the need for other sectors to get to the end point. In that regard its suggestion of potentially expanding the scope of the Safeguard Mechanism and carbon credit scheme is worth consideration."
About the Australian Energy Council
The Australian Energy Council is the peak industry body for electricity and downstream natural gas businesses operating in the competitive wholesale and retail energy markets. AEC members generate and sell energy to 10 million homes and businesses and are major investors in renewable energy generation. The AEC supports reaching net-zero by 2050 as well as a 55 per cent emissions reduction target by 2035 and is committed to delivering the energy transition for the benefit of consumers.
