Australia’s stationary energy industry is in transition. More than a decade of energy policy has delivered new renewable energy generation at a time of unprecedented reduction in demand for electricity.
Australia can now move toward the second phase of this transition and the closure of Australia’s most marginal and old electricity generation.
However, recent energy and climate policy uncertainty combined with barriers to exit for Australia’s ageing coal fired power fleet has resulted in these assets continuing to operate beyond their operational life, resulting in surplus capacity that is stifling signals for new investment in the energy supply sector.
In this briefing paper, the Clean Energy Council explores the issues assocated with the current surplus of generation in the Australian energy market.