The announcement of the Snowy Hydro expansion has reinforced the need for some serious discussion about energy.
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It might be a popular move, given our love of the iconic Snowy Scheme but it can hardly be considered an answer to the changing energy needs of this vast country.
Snowy Hydro’s raison d’etre has been not so much as a generator but more as a hedge fund or insurance policy.
When prices are high Snowy can turn on the taps and generate electricity to offset spot market price volatility.
It has used this ability to help buyers and sellers of electricity in the National Electricity Market manage exposure to price risk through financial hedge contracts. And while this ability is an interesting part of this complex marketplace, it is just that – a part.
It is high time that Australia developed an energy policy that went beyond the current election cycle.
We need politicians from all sides to come together for the good of the country and develop an energy policy that takes us towards mid-century. But where are the leaders who can shun the daily slanging match that appears to be the foundation of national politics?
Is there a man or woman who can step away from the political potboiler of South Australia’s energy network and its recent failures?
An energy policy isn’t just about making a populist announcement. It needs consideration of how our lives are going to change in the next 20-30 years and with it our energy needs.
It surely must be time to look at a wider and more innovative mix of systems as well as sources of energy.
The continued take up of solar panels by residents despite diminishing returns from any feedback into the grid would indicate a willingness by many to have greater control over their own energy generation with what might be considered their own hedge contracts.
Rising prices, a gold plated network in NSW and a serious disparity of views over how Australia generates peak load electricity has caused many to wonder where we might be heading but whatever is considered it should not just be about cities any more than it should be just about residents or businesses.
It’s time to take a big picture view through a long lens.