Excluding gas won’t work for capacity market: experts

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 39 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 90%

United States News News

United States United States Latest News,United States United States Headlines

Both energy industry regulators and industry leaders are cautioning that a capacity market for electricity that excludes gas won’t be effective.

Australia’s proposed electricity market reforms will need to embrace natural gas and potentially coal to “firm” weather-dependent renewables to be effective in heading off blackouts, energy bosses and regulators say.released after federal and state energy ministers’ emergency meeting on Wednesday mentions only renewables and storage in its reference to the capacity mechanism proposed for Australia’s National Electricity Market.

The final decision, however, lies with energy ministers, and Victoria’s Lily D’Ambrosio is one who has ruled out a capacity mechanism that would support any fossil fuel generation in her state. Origin Energy chief executive Frank Calabria voiced robust support for a capacity mechanism, but said it needed to include gas.

“Providing the right investment signals for new capacity is essential for our energy transition,” Mr Collette said, without commenting on how a capacity mechanism should be structured. The debate comes amid surging prices for electricity and gas in the eastern states because of coal power outages and low renewables generation that has increased demand for gas, at the same time as more is being used for heating during the cold snap.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Those demanding the exclusion of gas as part of the transition strategy may want to do some homework of the challenges faced in Europe and USA.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in US

United States United States Latest News, United States United States Headlines