Energy researchers call for full release of NEG modelling

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A group of 23 energy researchers from 11 institutions have written to state energy ministers calling for the full release of National Energy Guarantee (NEG) modelling.

The group, which includes researchers from the University of South Australia, Monash University, The University of Queensland and Australian National University, released the letter days before the COAG Energy Council meet on August 10 to make a decision on the proposed policy.

“We, the undersigned, representing many decades of combined experience with energy markets and energy policy, are concerned the carbon accounting and the reliability mechanisms of the NEG are poorly understood and have not received adequate review by Australia’s community of energy researchers,” the letter says.

“The proposed NEG is the most significant change to the National Electricity Market since the implementation of the National Electricity Laws in 1996.

“While there is much discussion in the public sphere about the adequacy of the emissions targets, we recognise that matter is not within the domain of the COAG Energy Council.

“This letter is concerned solely with the modelling of the twin mechanisms intended to address the trilemma of reduced emissions, high reliability and low energy costs.”

The letter says the Energy Security Board’s (ESB) Final Decision Paper, which refers to an ACIL Allen study that purports to validate the NEG design, provides insufficient detail on the study.

“It is difficult to reconcile the claims with our own understanding of energy market dynamics and the Australian Energy Market Operator’s Integrated System Plan,” the letter says.

“We call on the ministers to request the ESB to release the ACIL Allen modelling in full, including all assumptions that have a bearing on the modelling of price effects, and to provide access to the modelling team, so that we may have the opportunity to peer review the work.”