Aussie ARENA explores tariff reforms to spur green investments

The Australian Renewable Energy Agency (ARENA) said Monday it has allocated AUD 250,000 (USD 192,800/EUR 172,100) for the investigation of more flexible tariffs and charges for local renewable energy projects.

As part of the scheme, the Institute for Sustainable Futures at the University of Technology Sydney (UTS) will investigate two particular reforms for the National Electricity Market (NEM). The first one envisages lower network charges for generators, which use only the local network. As part of the second one, excess power will be transported between different locations through virtual net metering.

To that end, UTS will join hands with local councils, energy retailers, network service providers, the Total Environment Centre and other project partners. They will carry out studies, consultations and five virtual trials across New South Wales, Victoria and Queensland, aiming to build a case for the potential changes which could be submitted to the Australian Energy Market Commission.

The project is expected to be concluded in August 2016.

“The current NEM rules were formed at a time when centralised generation was the norm and local generation was the exception,” ARENA CEO Ivor Frischknecht explained. Changing them might encourage more councils, community organisations and businesses to invest in renewable energy, he added.

(AUD 1.0 = USD 0.771/EUR 0.688)

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