The impact of climate change on generation and transmission in the Australian national electricity market

Bell, William Paul (2012): The impact of climate change on generation and transmission in the Australian national electricity market.

Abstract

This paper aims to identify climate change adaptation issues in the Australian National Electricity Market (NEM) by assessing the robustness of the institutional arrangements that support effective adaptation from the supply side. This paper finds that three major factors are hindering or are required for adaptation to climate change: institutional fragmentation both economically and politically; distorted transmission and distribution investment deferment mechanisms; and lacking mechanisms to develop a diversified portfolio of generation technology and energy sources to reduce supply risk. Proposed solutions to the three factors are discussed. These proposed solutions are tested and examined in forthcoming papers.

• Item Type: MPRA Paper
• Language: English
• Keywords: Climate change adaptation; electricity generation; electricity transmission; Australian National Electricity Market
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q0 - General > Q01 - Sustainable Development; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L94 - Electric Utilities; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R38 - Government Policy

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