The Australian National Electricity Market is and will continue to rapidly decarbonise, needing to transition to a more technology-flexible power system. With rapid change can come new risks and costs which need to be allocated to those best able to manage them.
On behalf of our members we develop and execute targeted stakeholder consultation and advocacy programs to engage with:
Across regulation and policy arenas we initiate, investigate, and respond to consultations and national electricity rule changes that impact institutional investors.
Investors in the clean energy sector currently face significant market and regulatory barriers that create unnecessary risk and push up the cost of investing in clean energy projects in Australia compared to other OECD markets.
The Clean Energy Investor Group has drawn on the wealth of experience of its investor members to present recommendations for market reform which can drive down the cost of capital for the clean energy transition in Australia. These are organised under five Clean Energy Investor Principles.
As federal, state and territory governments consider the future design of the National Electricity Market, Clean Energy Investor Group has developed the Clean Energy Investor Principles, supported by expert modelling and regulatory analysis from Rennie Partners, to show how we can unlock the low-cost capital Australia needs to accelerate the clean energy transition.
Watch CEIG CEO, Simon Corbell, speak to the five Investor Principles which can help drive down the cost of capital for the clean energy transition in Australia.
Marginal loss factors (MLF) figures are the percentage of electricity that the Australian Energy Market Operator (AEMO) predicts will be lost in transmission between generator and end user. Resistive heat causes power loss when electricity travels along transmission line, especially over long distances. In a vast country such as Australia, where many generators are in remote locations, this can be a problem.
The changing MLF also makes it difficult to say with certainty what a generator’s return will be over several decades. This then introduces an element of risk into investing in new clean energy generators. MLF figures are decreasing as more generators enter the network in more remote areas. This increases electricity transmission, which increases the loss in the power lines.
A strong investment pipeline is dependent on the review of MLF calculations to encourage efficient investment and mitigate unpredictable hits to the financial sustainability of existing and future renewable energy projects. This initiative will support an alternative to calculating MLF.
One of the greatest barriers to the rollout of renewable energy and hybrid projects has been issues with grid connection. There is a clear need to develop a range of solutions to address the concerns of investors in the connection process. This includes ensuring improvements are made to the connections process to ensure the system can safely and securely take on the high number of large-scale renewable energy projects that are and will continue to register to connect to Australia’s power systems.
CEIG will work with the Connections Reform Initiative to address three core objectives that will aim to alleviate roadblocks the industry is facing and allow for the continued growth of large-scale renewable projects.