Energy
1 July 2018
Mostly working: Australia’s wholesale electricity market
Wholesale electricity prices rose by 130 per cent between 2015 and 2017. But governments can’t fix the problem, because most of the price rises are caused by issues beyond their control. Politicians should tell Australians the harsh truth: high electricity prices are the new normal.
25 March 2018
Down to the wire: A sustainable electricity network for Australia
State governments have spent up to $20 billion more than was needed on the electricity grid. Customers are paying up to $400 more for their power each year than they should. They should get a rebate, or governments should write down the value of the assets to reduce electricity bills.
1 February 2018
Designing a more reliable National Electricity Market
Australia is seeking to design a ‘reliability mechanism’ as part of the National Energy Guarantee. This Working Paper provides suggestions on how to design the mechanism and how it might work. On balance, we support a well-designed retailer obligation that utilises commercial market drivers. But we recognise there are risks in this approach. Policy makers will need to consult widely to ensure the new mechanism achieves the right balance between higher reliability and lower costs.
10 September 2017
Next Generation: the long-term future of the National Electricity Market
Australia’s electricity system is under pressure like never before. Work should start immediately on a new ‘capacity mechanism’ in case it is needed to ensure reliable supplies in future.
21 May 2017
Powering through: how to restore confidence in the National Electricity Market
Urgent action is needed to reduce the risk of power blackouts this summer. But the danger is politicians panicking and rushing to decisions that push up electricity prices and make it harder to cut emissions. What’s needed is market reform, not government investments in generation.
13 March 2017
Price shock: Is the retail electricity market failing consumers?
Competition in electricity retailing has failed to deliver lower prices and better services for consumers. Governments will need to step in and re-regulate prices if the industry does not lift its game.
25 September 2016
Keeping the lights on: lessons from South Australia’s power shock
Soaring wholesale electricity prices in South Australia in July warn of Australia’s failure to combine climate change and energy policies. To ensure that power is reliable, affordable and sustainable, it’s time to heed the lesson.
14 June 2016
Orange Book 2016: priorities for the next Commonwealth Government
Australia faces many domestic policy challenges as the election looms. Yet a survey of seven years of Grattan Institute reports and policy proposals shows that a government prepared to forcefully articulate the public interest could win public support for a brave and powerful reform agenda.
10 April 2016
Climate phoenix: a sustainable Australian climate policy
After a decade of toxic political debate, there is an opportunity to forge a stable and compelling policy on climate change that both major parties can support.
15 December 2015
Post Paris: Australia’s climate policy options
An economy-wide, market-based scheme is the best way to reduce Australia’s greenhouse gas emissions – it’s also politically difficult. Six criteria should guide the design of an alternative policy framework.