Renewables

NT outlines “priority” electricity market reforms on road to 50% renewables

Published by

The Northern Territory Labor government has outlined a list of key electricity market reforms, in a long-awaited first step towards smoothing the way to a grid it has pledged will be 50 per cent renewable by 2030.

The priority reforms, outlined in consultation papers published late last week, aim to address core issues of system security and reliability, boosting private investment, and maximising the amount of renewable power in the network.

The plan is to invite electricity industry stakeholders to consult on the detail and implementation of the reforms, which will be on public display until the end of July, through submissions and stakeholder workshops.

  1. “The Northern Territory electricity supply industry is undergoing a significant transition and reform is required to facilitate increased market entrants and emerging technologies that will support the government’s target of 50 per cent renewable energy by 2030, while maintaining secure, reliable and least-cost electricity for consumers and taxpayers,” one of the papers says.

The government has been under increasing pressure from industry for taking too long to implement reforms to the Territory’s electricity regulations, and playing a clumsy game of catch-up as more and more solar is added to rooftops and to the grid.

This sort of reactive approach was, for many, embodied by the proposed introduction of highly controversial rules that would require most new large-scale solar projects to install individual batteries.

The government has since announced the procurement of a large-scale battery energy storage system (BESS) for the Darwin-Katherine system, at a project cost of $30 million, as a different approach to solving the problem of smoothing high solar penetration.

“The Territory’s power systems are evolving as we transition to solar,” the government said in a statement on Friday.

“With current and committed large-scale solar projects planned for construction in 2020, and projected residential and commercial rooftop solar system installations, renewable energy is expected to supply up to 16 per cent of electricity consumption by the end of 2020.”

The list of reforms outlined in the consultation papers will focus on improving the coordination of solar and gas-fired generators), ensuring sufficient generation capacity and reliability, facilitating payments between retailers and generators (settlement), and improving the efficiency of the provision of essential power system security services.

These are detailed more clearly in the table below.

“Territory Labor is delivering more renewables because we know it means cheaper, cleaner power and more local jobs,” energy and renewables minister Dale Wakefield said.

“These market reforms will encourage private investment in the new and innovative technology that will allow more renewables in our electricity system while ensuring reliable and secure power.”

The Northern Territory Electricity Market Priority Reform Program and Essential Systems Services consultation papers can be found at https://business.nt.gov.au/electricityreforms

RenewEconomy and its sister sites One Step Off The Grid and The Driven will continue to publish throughout the Covid-19 crisis, posting good news about technology and project development, and holding government, regulators and business to account. But as the conference market evaporates, and some advertisers pull in their budgets, readers can help by making a voluntary donation here to help ensure we can continue to offer the service free of charge and to as wide an audience as possible. Thank you for your support.

Sophie Vorrath

Sophie is editor of One Step Off The Grid and deputy editor of its sister site, Renew Economy. She is the co-host of the Solar Insiders Podcast. Sophie has been writing about clean energy for more than a decade.

Share
Published by

Recent Posts

Plibersek defends coal mine approvals amid blockades of Newcastle port

Environment minister Tanya Plibersek defends coal mine approvals as 170 people arrested for blockading world's…

25 November 2024

From finance deal to carbon trade: Here’s what was – and wasn’t – achieved at the COP29 climate talks

Many people are disappointed by COP29. It did not bring transformative change. But it was…

25 November 2024

Rooftop solar and EVs will dominate our grids: How do we reform the energy system around them?

Australia’s electricity system is physically decentralising, but the regulatory response is to extend the current…

25 November 2024

Australia’s bid to host climate COP for first time on hold as fossil lobby ups the ante at fractious Baku talks

Australia's bid to host UN climate talks for first time stalled at fractious Baku COP,…

25 November 2024

Massive 70 GW wind and solar project that straddles Nullarbor given environmental criteria

EPA says proposed 70 gigawatt wind and solar project that straddles Nullarbor is a complex…

25 November 2024

Labor girds for tricky fight for green hydrogen tax credits in last week of parliament

The hydrogen tax credit bill is being introduced to Parliament, with the Coalition opposed and…

25 November 2024