The Australia Institute has been joined by energy and technology leaders in opposing proposed delays to energy market reforms, including the determination on ‘Five Minute Settlement’ (5MS).
The Australian Energy Market Commission (AEMC) is currently considering whether to delay the implementation of this important market modernisation measure by 12 months, from July 2021 to July 2022. Any delay will benefit incumbent coal generators and energy retailers.
The Australia Institute’s submission to the AEMC opposing the delay includes Atlassian Co-CEO Mike Cannon-Brookes, Renewable Energy Entrepreneur and Investor Simon Hackett and Amber Electric Co-CEO Dan Adams as signatories.
“Australia’s outdated energy market is already holding back the transition to renewable energy. Delaying reform further will increase power prices for all consumers and jeopardise investment,” said Dan Cass, Energy Policy & Regulatory Lead at The Australia Institute.
“The current coal generators and incumbent retailers are trying to use COVID-19 to further delay market reforms and drive up costs for consumers at a time when many Australian families are struggling to get by.
“Five minute settlement is an important market reform that would provide a better price signal for investment in fast response technologies, such as batteries and demand response, and it should not be delayed because the incumbent generators want to protect their market power.
“Liddell power station will retire in 2023 and there are concerns Yallourn may close early, so we must urgently redesign the market to work well with renewables. Delaying reform now would be a major setback for Australia and the essential energy transition that our market is going through.”
The Australia Institut’e submission is avialable here.