Our immediate focus must be on restoring the security, reliability and affordability of our energy systems. However, we cannot ignore the need for a more sustainable system as we transition towards a lower emissions economy.
Clear, stable energy and climate change policy will be critical to support much needed investment in the sector. Without new investment, we cannot deliver the security, reliability and affordability Australians expect.
The Business Council considers that the Independent Review into the Future Security of the National Electricity Market (the Finkel Review) should focus on the following five key reform priorities:
- Ensure security of electricity supply and restore community confidence in the operation of the National Electricity Market (NEM)
- Create conditions for investments necessary to support the reliability of energy markets
- Improve affordability of energy supply to drive a strong, internationally competitive economy
- Ensure the necessary incentives are in place for the energy sector to make its contribution to achieving the 2030 emissions reduction target
- Preserve optionality across all timeframes to achieve deeper reductions in emissions beyond 2030.
Governments collectively hold the policy tools to influence three critical levers within the energy system – market design, fuel supply and infrastructure investment.
Each of these levers must be pulled in a coordinated fashion if we are to deliver the stable, integrated energy and climate change policy that will secure investment across the short, medium and long term.