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New regulation for a new energy system
Unlocking Australia’s renewable future
Tony Meehan, Executive Manager, Regulation
Australian Clean Energy Summit, 19 July 2017
#ACES2017
New regulation for a new energy system2 /
32% of
Australia’s
population
34% of energy
consumed in
the NEM
NSW sits between the
2nd and 3rd largest
regions in the NEM
Backbone of the Australian National Electricity System
NSW
New regulation for a new energy system3 /
Disruption at the source of energy
Existing large generation
Coal
49%
CCGT
5%
OCGT
14%
Gas other
5%
Solar*
0.58%
Wind
9%
Water
17%
Biomass
1%
Other
0.30%
Coal CCGT OCGT Gas other Solar* Wind Water Biomass Other
NEM existing generation capacity mix
New regulation for a new energy system4 /
Technology has disrupted generation before
Pyrmont Power Station (1904 – 1983)
Pyrmont, Sydney
The Star (1995 – )
Pyrmont, Sydney
Image: Maksym Kozlenko
New regulation for a new energy system5 /
Metropolitan generation in Sydney and Melbourne
Spencer Street Power Station (1892 – 1982)
Central Melbourne, Melbourne
White Bay Power Station (1917 – 1983)
Rozelle, Sydney
New regulation for a new energy system6 /
Transmission technology enabled coalfield generation
Hazelwood Power Station
(1964 – 2017)
Latrobe Valley, Vic
Munmorah Power Station
(1967 – 2012)
Central Coast, NSW
Bayswater
(commissioned 1985 – 86)
Hunter Region, NSW
Image: Macquarie Generation
Loy Yang B
(commissioned 1996)
Traralgon, Vic
Image: Marcus Wong Wongm
New regulation for a new energy system7 /
A trajectory towards 100%
renewable generation is feasible,
and the technical challenges
associated with this
transformation can be met in a
way that is affordable for
consumers.
Connection of large-scale renewable generation in areas with abundant renewable resources could
be enabled by extension of the transmission network to those areas.
The transition to large-scale renewable sources of energy will
be enabled by transmission
New regulation for a new energy system8 /
Renewable
energy zones to
support the
national electricity
system
New regulation for a new energy system9 /
A pathway towards
generation with a low
levelised cost of
energy (LCOE) that
meets emissions
targets.
Development of
transmission
networks to integrate
large-scale renewable
energy whilst ensuring
power system
stability
Mechanisms that
provide ancillary
services at the lowest
possible cost
Renewables
Transmission as a
platform
Security and stability Consumer focus
Market design
appropriate to the future
energy mix, that
promotes genuine
competition and
protects consumers
when there is
ineffective competition
Key elements
Transition to renewables at lowest cost
New regulation for a new energy system10 /
TransGrid’s current renewable connections projects
New regulation for a new energy system11 /
The regulation of the National Electricity
System needs to enable the transition to
a renewable energy future.

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New regulation for a new energy system: Australian Clean Energy Summit 2017

  • 1. New regulation for a new energy system Unlocking Australia’s renewable future Tony Meehan, Executive Manager, Regulation Australian Clean Energy Summit, 19 July 2017 #ACES2017
  • 2. New regulation for a new energy system2 / 32% of Australia’s population 34% of energy consumed in the NEM NSW sits between the 2nd and 3rd largest regions in the NEM Backbone of the Australian National Electricity System NSW
  • 3. New regulation for a new energy system3 / Disruption at the source of energy Existing large generation Coal 49% CCGT 5% OCGT 14% Gas other 5% Solar* 0.58% Wind 9% Water 17% Biomass 1% Other 0.30% Coal CCGT OCGT Gas other Solar* Wind Water Biomass Other NEM existing generation capacity mix
  • 4. New regulation for a new energy system4 / Technology has disrupted generation before Pyrmont Power Station (1904 – 1983) Pyrmont, Sydney The Star (1995 – ) Pyrmont, Sydney Image: Maksym Kozlenko
  • 5. New regulation for a new energy system5 / Metropolitan generation in Sydney and Melbourne Spencer Street Power Station (1892 – 1982) Central Melbourne, Melbourne White Bay Power Station (1917 – 1983) Rozelle, Sydney
  • 6. New regulation for a new energy system6 / Transmission technology enabled coalfield generation Hazelwood Power Station (1964 – 2017) Latrobe Valley, Vic Munmorah Power Station (1967 – 2012) Central Coast, NSW Bayswater (commissioned 1985 – 86) Hunter Region, NSW Image: Macquarie Generation Loy Yang B (commissioned 1996) Traralgon, Vic Image: Marcus Wong Wongm
  • 7. New regulation for a new energy system7 / A trajectory towards 100% renewable generation is feasible, and the technical challenges associated with this transformation can be met in a way that is affordable for consumers. Connection of large-scale renewable generation in areas with abundant renewable resources could be enabled by extension of the transmission network to those areas. The transition to large-scale renewable sources of energy will be enabled by transmission
  • 8. New regulation for a new energy system8 / Renewable energy zones to support the national electricity system
  • 9. New regulation for a new energy system9 / A pathway towards generation with a low levelised cost of energy (LCOE) that meets emissions targets. Development of transmission networks to integrate large-scale renewable energy whilst ensuring power system stability Mechanisms that provide ancillary services at the lowest possible cost Renewables Transmission as a platform Security and stability Consumer focus Market design appropriate to the future energy mix, that promotes genuine competition and protects consumers when there is ineffective competition Key elements Transition to renewables at lowest cost
  • 10. New regulation for a new energy system10 / TransGrid’s current renewable connections projects
  • 11. New regulation for a new energy system11 / The regulation of the National Electricity System needs to enable the transition to a renewable energy future.