In December 2016, the COAG Energy Council tasked the Australian Energy Market Commission (AEMC) with providing targeted strategic advice to inform the Council’s priority setting process.
Since Council issued the terms of reference to the AEMC, the Independent review into the future security of the National Electricity Market (the Finkel review) examined sector governance in the context of power system security and reliability, reporting in June 2017. Council initiated the Finkel review on 7 October 2016 to take stock of security and reliability in the national electricity market following the September system black event in South Australia.
The Finkel review recommended that a new Energy Security Board be established, and its responsibilities include implementing the ‘Finkel blueprint’. The Finkel review also recommended that COAG develop a strategic energy plan. It is envisaged that the Finkel-recommended strategic energy plan will be the mechanism through which the Council will articulate the sector’s strategic direction, and identify priorities and related work plans. The Energy Security Board will prepare advice to Council on the strategic energy plan.
As such, this AEMC review will be an input to the Energy Security Board’s consideration of advice to Council.
On 12 September 2017 the AEMC published a discussion paper on strategic priorities for the Australian energy sector.
AGL made this submission in response to the discussion paper.