How to fix Australia’s energy crisis: scrap the National Energy Market
The objective of NEM's replacement authority would be the provision of a stable, reliable and affordable supply of energy while managing a transition to a zero-carbon economy, writes economist John Quiggin.
There are quite a few proposals around to intervene in, or repair, the National Electricity Market. In my view, it’s much too late for that. We need to scrap the NEM and start on a new path towards a zero-carbon electricity and energy system. I’ve written down some preliminary thoughts. I’d appreciate comments and also suggestions as to how I might push this idea along a bit.
(a) The National Electricity Market has failed, and requires radical restructuring; (b) The ultimate goal of energy policy should be a 100% renewable supply of electricity, providing both for existing needs and for conversion to electric vehicles by 2050; and (c) The goal of a bipartisan policy is currently unattainable. Policy design should be based on the premise of a change of government at the next election.