The COAG Australian Energy Market Agreement: What You Need to Know
The Council of Australian Governments (COAG) has recently signed an energy market agreement that is set to have a significant impact on the Australian energy market. The COAG Australian Energy Market Agreement (AEMA) is aimed at improving the reliability and affordability of the country`s energy supply.
So what is the COAG AEMA, and how will it affect consumers and businesses in Australia? Here`s what you need to know.
What is the COAG AEMA?
The COAG AEMA is an agreement between the federal government and the states and territories of Australia. The agreement sets out a range of measures aimed at improving the reliability, security, and affordability of Australia`s energy supply, as well as reducing greenhouse gas emissions.
The agreement includes measures such as:
– Improving the flexibility and reliability of the energy system, including through the introduction of new technologies such as batteries and demand response;
– Increasing competition in the energy market, including through measures to improve transparency and reduce barriers to entry for new players;
– Supporting investment in new energy infrastructure, including renewable energy projects and new transmission lines; and
– Establishing a framework for achieving Australia`s emissions reduction targets under the Paris Agreement.
What are the main benefits of the COAG AEMA?
The COAG AEMA is expected to bring a range of benefits to consumers and businesses in Australia, including:
– Improved energy security and reliability, which will help to reduce the risk of blackouts and other disruptions to the energy supply;
– Lower energy prices, as increased competition in the energy market leads to lower prices for consumers;
– Increased investment in new energy infrastructure, including renewable energy projects, which will help to reduce Australia`s greenhouse gas emissions and support the transition to a low-carbon economy; and
– Better coordination between the federal government and the states and territories, which will help to ensure a more effective and efficient energy market.
When will the COAG AEMA come into effect?
The COAG AEMA was signed in November 2018, and the federal government and the states and territories are currently working to implement the measures set out in the agreement. Some measures, such as the introduction of new demand response and battery storage initiatives, are already underway.
Overall, the COAG Australian Energy Market Agreement represents a significant step forward for Australia`s energy market. By improving reliability, affordability, and sustainability, the agreement is set to deliver a range of benefits for consumers and businesses alike.