Australia - Trends in the Electricity Market - 2009

Synopsis

The Australian electricity market will undergo a massive transformation over the next decade. The transformation will be caused by environmental and climate change developments, as well as the fact that production of fossil fuels has reached its peak due to unprecedented demand. This will result in significant price increases which will accelerate the development of alternative energy resources. Privatisation will assist companies to be better prepared for these developments, but major government policy initiatives are required to give clear direction to the market. A new underlying energy infrastructure – smart grids – is needed to facilitate the transformation of the industry. A $100 million smart grid demonstration project was launched by the government in 2009.