AEMC East Coast Gas Market Reforms

Bunch of information out from AEMC today and can be found at:
http://www.aemc.gov.au/News-Center/What-s-New/Announcements/Roadmap-released-to-reform-east-coast-gas-market

Interesting concept of new gas hubs. Check out the related documents in the LHS of the above link for lots of info (Final Report, Info Sheet, Cost Benefit Analysis, etc)

Summary fact pack can be found at:
http://www.aemc.gov.au/Markets-Reviews-Advice/East-Coast-Wholesale-Gas-Market-and-Pipeline-Frame/Stage-2-Final-Report/AEMC-documents/Fact-Pack.aspx

In the news at:
http://www.theaustralian.com.au/business/mining-energy/gas-market-needs-reform-aemc-chair-john-pierce/news-story/3b4a85102ead4da5fd44aa386979ad1f (appears to free at present)

http://www.copyright link/news/gas-reform-can-ease-power-and-gas-price-spikes-aemcs-john-pierce-says-20160726-gqej5q

And in related news is the following article in AFR titled “Josh Frydenberg says coal on the decline and gas and renewables needed”
http://www.copyright link/news/politics/josh-frydenberg-says-coal-on-the-decline-and-gas-and-renewables-needed-20160726-gqehv6

It’s paywalled but salient points are:

- Environment and Energy Minister Josh Frydenberg accepts the decline in the use of coal for electricity generation but says the sector needs to rely more on gas for back-up as it inevitably moves towards renewable and other clean energy sources.

- Signalling a significant shift in energy policy for the Coalition, Mr Frydenberg said the recent high price and supply problems in Tasmania and South Australia, caused by a lack of base load power and the unreliability of renewables, were not the fault of renewable energy. He cited unilateral policies which have the states chasing different renewable energy targets and timetables without coordination or adequate backup.

- In an interview with The Australian Financial Review, the newly-appointed minister said the key focus of the August 19 meeting of state and federal energy ministers would be on developing a nationally-coordinated plan to transition towards clean energy sources, both large-scale renewables and an anticipated surge in home battery storage.
- His policy goal was to provide "an affordable, accessible and reliable energy supply as we transition to a low emissions future". Until then, there would continue to be a need for reliable base load power and this should be generated using gas, including coal seam gas. "We need more gas supply and more gas suppliers," he said. "We shouldn't have blanket moratoriums on unconventional gas like we have in Victoria and NSW because you need more gas and gas suppliers.We need to have diversity in energy supply, that also means gas and there's still going to be a reliance on coal, even though there is going to be a transition away from coal which is not a bad thing."

- In SA recently, a failure of an interconnector to Victoria combined with high demand and no wind, caused a crisis which drove up the spot price of power. The state government had to ask a mothballed gas-fired power station at Pelican Point to start generating.