Is the Capacity Investment Scheme quietly picking winners?
Thirty-two projects. That is roughly how many contracts the federal government had underwritten through the Capacity Investment Scheme by the time the scheme’s first major tranches closed. The dollar exposure runs well past $10 billion in revenue guarantees when you count both the capacity and variable renewable energy components. That is not a subsidy in […]
The Capacity Investment Scheme, explained
32 gigawatts. That is the headline target sitting at the centre of the federal government’s Capacity Investment Scheme — a contract mechanism that, depending on who you ask, is either the most sensible piece of energy market engineering in a decade or a subsidy programme dressed up in the language of market design. I’ve been […]
The Default Market Offer and your power bill
$1,984. That is roughly what a typical residential customer using around 4,000 kilowatt-hours a year pays annually on a standing offer in south-east Queensland under the current Default Market Offer framework. It is not the cheapest deal available, not by a long margin, and yet a substantial share of households remain on it. That single […]
How Renewable Energy Helps Australia’s Growth?
Renewable energy is now a popular power source in many countries. The recent increase in electricity prices, combined with the growing environmental concerns, has motivated many Australians to adopt this sustainable and clean alternative. To support the transition to a more sustainable and healthier lifestyle, Australia has invested heavily in renewable technologies. This change not only reduces carbon […]
Renewable Energy in Australia
Renewable energy is produced in Australia using abundant natural resources, such as biomass, solar and wind generation, and hydro-generation technologies. Over a third of Australia’s electricity is produced from renewable resources. The proportion of renewable energy is increasing, as per the global trend. Many leading Australian businesses are investing in renewable energy production. Cost savings […]
Air-conditioners and solar — why electricity pricing needs to be reformed
Introduction Australia’s electricity pricing model, largely unchanged since the mid-20th century, is under increasing strain. The surge in air conditioner usage and rooftop solar installations has transformed consumption patterns, revealing significant inequities in how network costs are distributed. This discussion paper examines the current challenges and proposes reforms to ensure a fair and sustainable electricity […]