However, the report admits that domestic gas prices are likely to remain high despite market reforms.
Blueprint for the future
“The blueprint released today presents the essential elements for a strategic plan for our electricity future. It is up to Federal, State and Territory Governments to take these recommendations, make decisions, add detail and drive it forward,” said Dr Finkel.
The blueprint will deliver four key benefits for the electricity system:
- future reliability
- increased security
- rewarding consumers
- lower emissions
The report uses three pillars to achieve these outcomes: orderly transition measures, system planning and stronger governance.
Under the orderly transition pillar, the Review Panel concluded that a Clean Energy Target is the most effective mechanism to reduce emissions while supporting security and reliability.
Existing large electricity generators will be required to give a three years’ notice of closure.
This will signal investment opportunities for new generation and give communities time to adjust to the loss of a large employer.