In another significant step towards 50 per cent renewables by 2030, the Northern Territory Government has announced priority electricity market reforms to address system security and reliability, encourage private investors and maximise the amount of renewable power in the network.
These priority electricity market reforms will encourage investment in innovative solutions to the challenges of a modern energy market. Better integration of new, cleaner and cheaper power technologies in our electricity systems will boost industry and create jobs for Territorians.
The Territory's power systems are evolving as we transition to solar. With current and committed large scale solar projects planned for construction in 2020, and projected residential and commercial rooftop solar system installations, renewable energy is expected to supply up to 16 per cent of electricity consumption by the end of 2020.
These reforms will:
- improve coordination of solar and gas-fired generators (dispatch)
- ensure there is sufficient generation capacity available to meet consumers' needs (reliability)
- facilitate payments between retailers and generators (settlement)
- improve the efficiency of the provision of essential power system security services (system services)
Electricity industry stakeholders will be fully consulted on the detail of the reforms and their implementation through stakeholder workshops and formal consultation papers.
Two consultation papers have been released today along with an invitation to join a Stakeholder Working Group.
The announcement of the Government's priority electricity market reforms follows the Government's announcement in April 2020 of the procurement of a large scale battery energy storage system (BESS) for the Darwin-Katherine system at a project cost of $30M.
Procurement of the BESS is progressing in line with delivery in the second half of 2022.
The Northern Territory Electricity Market Priority Reform Program and Essential Systems Services consultation papers can be found at https://business.nt.gov.au/electricityreforms
As noted by Minister for Renewables, Energy and Essential Services, Dale Wakefield
"Territory Labor is delivering more renewables because we know it means cheaper, cleaner power and more local jobs.
"These market reforms will encourage private investment in the new and innovative technology that will allow more renewables in our electricity system while ensuring reliable and secure power.
"They continue the significant progress Labor has made towards our target of 50% by 2030 with renewables projected to reach 16% by the end of 2020 – up from 2% in 2016.
"These reforms and the significant progress we've made would be put at risk by a CLP or Terry Mills Government.
"With the CLP continuing to claim renewables are a hoax, and Terry Mills promising less renewables, only Labor has the record and policies to secure a renewable future for the Territory."
