Today, the Morrison Government is delivering on our plan for reliable power for Australian households and businesses, with the commencement of the Retailer Reliability Obligation.
Record investment in intermittent renewable generation, namely solar and wind, combined with ageing thermal generators, requires measures to ensure the reliability of our grid.
The Retailer Reliability Obligation will ensure retailers are accountable for reliability by requiring energy companies to sign contracts guaranteeing enough energy is available to meet demand. This will give households and businesses confidence that enough generation will be available to meet their electricity needs.
This is a long-term solution that will provide a clear signal to businesses and market participants to invest in the right types of technology at the right time to strengthen reliability in the National Electricity Market.
The Retailer Reliability Obligation is technology neutral-we are not picking winners. Retailers can choose to contract with any form of generation. The firmer the contracted generation source is, the greater its contribution would be to meeting the reliability obligation. This will ensure investment occurs in the right technologies to be available at the right time to meet the market’s needs.
The Retailer Reliability Obligation is just one of a number of measures that will help address reliability challenges. We will continue to work with the states and territories through the COAG Energy Council in order to deliver reliable, secure and more affordable energy.
The Government has also committed to invest in energy technologies and infrastructure to provide greater support for reliability. This includes $56 million for the development of the Marinus Link, $1.38 billion for Snowy 2.0, and the creation of the Underwriting New Generation Investments program.
Further information on the Government’s initiatives to address energy reliability is available at energy.gov.au.