Inquiry into dispatchable energy generation and storage capability

PIAC responded to the Standing Committee on the Environment and Energy’s (the Committee) inquiry into the current circumstances, and the future need and potential for dispatchable energy generation and storage capability in Australia (the Inquiry).

The issue of dispatchable power is important as the energy system transitions and traditional sources of generation retire.  PIAC considers renewable sources and storage, such as batteries, pumped hydro and Distributed Energy Resources (DER) such as demand response, are the most cost effective and reliable means of meeting Australia’s dispatchable capacity requirements. PIAC considers all Australia’s dispatchable capacity can be met in future using renewable sources, while Gas Powered Generation will continue to have a minor but important role for some years meeting infrequent peak events.

PIAC considers a market for flexibility in generation, storage and demand-side resources is needed to ensure sufficient dispatchable generation is available in future. The current energy-only market is not fit to encourage new investment in and provision of flexible energy services needed as the energy system transitions.