Supercharging Transmission Buildout
Transmission is the missing link in Australia’s transition to clean energy. We plan the transmission we need, but then we don’t build it, or at least not nearly fast enough. This failure to build transmission quickly enough is an existential threat to Australia’s energy system.
The slow pace of Australia’s clean energy transition means that not only will Australia fail to meet its climate targets, but there is a significant threat to power system reliability and security, and increased costs for consumers both large and small.
Our report, “Supercharging Transmission Build Out”, focuses on addressing the regulatory environment and lack of coordination, providing an analytical basis for why the Regulatory Investment Test for Transmission (RIT-T) is the wrong regulatory tool to support the achievement of these objectives. This has been recognised by the states and in particular Victoria.
The report argues the regulatory framework needs to support the rewiring of the nation in a way that builds trust between the government, regulators, transmission proponents and the public. That is, the regulatory system needs to:
- deliver what it says it will deliver, without delays; and
- build social license and provide equitable outcomes for communities that are disrupted
A more radical approach is needed to ensure our regulatory frameworks create transparency and accountability for not only the network operators, but also state governments to ensure these projects are delivered on time.
Our recommendations provide further detail around the implementation of those included in our previous reports. The context to these recommendations, including assessment of the key failures of the existing framework, is provided.
Our recommendations reflect the need for a shift towards performance-based regulation. Innovative economic regulation in other Australian sectors has demonstrated the benefits of incentivising proponents to focus on delivery and consumer value.
Read the full report here: NexaAdvisory-Supercharging Transmission Buildout Report
