Electricity restructuring for efficiency & sustainability:- Australia 1 Electricity Industry Restructuring for Efficiency & Sustainability - Lessons from the Australian Experience Hugh Outhred & Iain MacGill, Centre for Energy & Environmental Markets University of New South Wales Email: [email protected]2 Electricity restructuring for efficiency & sustainability The stationary energy sector: Can we mainstream ESCOs? Primary energy forms e.g: coal, gas, nuclear, renewable energy losses & external impacts generation transmission distribution The electricity supply industry end-use equipment delivering energy services eg: light, heat, motive power transmission distribution treatment The natural gas supply industry Energy service companies focus on end-use options, eg: efficiency, CHP, solar non-storable, continuous energy flow
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Electricity Industry Restructuring for Efficiency & Sustainability - … · 2013-07-30 · What has been the Australian experience? – Electricity cheap & ESCO role small – Electricity
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Electricity restructuring for efficiency & sustainability:- Australia 1
Electricity Industry Restructuring forEfficiency & Sustainability - Lessonsfrom the Australian Experience
Hugh Outhred & Iain MacGill,Centre for Energy & Environmental MarketsUniversity of New South WalesEmail: [email protected]
2Electricity restructuring for efficiency & sustainability
The stationary energy sector:Can we mainstream ESCOs?
Primaryenergyformse.g:
coal, gas, nuclear,
renewable
energy losses & external impacts
generation transmission distribution
The electricity supply industry
end-useequipmentdelivering
energyserviceseg: light,
heat,motivepower
transmission distributiontreatment
The natural gas supply industry
Energy service
companies focus on
end-use options, eg:
efficiency, CHP, solar
non-storable,continuousenergy flow
Electricity restructuring for efficiency & sustainability:- Australia 2
3Electricity restructuring for efficiency & sustainability
Why improve efficiency of energy use?
Some arguments for energy efficiency policies:
– Economic efficiency - electricity markets don’t work
– Climate change (Hansen: reduce emissions this decade)
– Social policies, particularly for the disadvantaged
Some arguments against energy efficiency policies:
– Economic efficiency - electricity markets do work
What has been the Australian experience?
– Electricity cheap & ESCO role small
– Electricity use & CO2 rising, load factor worsening
– Difficult to implement effective white certificate trading
4Electricity restructuring for efficiency & sustainability
Present electricity industry structure in SE Australia
Gen 1
Gen 2
Gen X
Generation
Sector:-
large
generators
Gen 3
Transmission
Sector
NSW
Victoria
South Aust.
Queensland
& possibly
Tasmania
Electricity
Financial instrument
& REC (emission) trading
Distributor 1
Distributor 2
Distributor Y
Distribution
sector
Electricity
Multi-region
National
Electricity
Market
(NEM)
Intentions
offers &
payments
Retailer Z
Retailer 2
Retailer 1
Retail
sector
Intentions
bids &
payments
Tx network
pricing
Tx network
pricing
Network
access End-use
Equipment
&
Distributed
resourcesElectricity
End-use
sector
Contestable
end-users
Franchise
End-users
Retail
Markets
Embedded
generators
Electricity restructuring for efficiency & sustainability:- Australia 3
5Electricity restructuring for efficiency & sustainability
Average NEM spot prices since market
inception (12/98 to 12/05) (AER long term analysis)
6Electricity restructuring for efficiency & sustainability