Australian Pipelines and Gas Association (APGA) Chief Executive Cheryl Cartwright said modelling in the 2016 NEM Electricity Statement of Opportunities issued today by the Australian Energy Market Operator (AEMO) indicates that new electricity generation will be required if Australia is to meet greenhouse targets.
The AEMO modelling predicts that if coal-fired power stations are retired to meet carbon emissions reduction commitments, other sources of electricity would be required to avert risks of power shortages.
“Using a combination of renewable energy sources and natural gas to generate electricity would enable Australia to reduce carbon emissions to meet its commitment,” said Ms Cartwright.
“CoAG energy ministers meeting next week must seize the opportunity to encourage investment in gas and gas markets.
“Ministers must demonstrate they recognise the value of gas in a carbon-constrained economy.
“Electricity generated by natural gas has less than half the emissions of electricity generated by coal.
“Renewables plus natural gas is the logical way forward for an economy that wants to reduce emissions efficiently and economically.”
“Energy ministers would also do well to avoid unnecessary regulation of the gas industry as this hampers the effective operation of the market.
“Increased gas supply would see an increase in liquidity and competition in the gas market bringing lower prices for consumers and helping to avoid any risk to power supply because of the unreliability of renewable energy and lack of energy storage.
“APGA calls on energy ministers to introduce sensible policies for gas and gas markets. Policies that encourage competition and transparency rather than increase regulation and stifle investment in this critical sector of the economy.”
