ClimateWorks Australia Report (July)

https://climateworks.com.au/sites/d...ications/cwa_power_up_report_final_12_jul.pdf



"Using the 4 Pillars of Decarbonisation (energy efficiency, low carbon electricity, fuel switch & electrification and non-energy emissions), we are able to identify the implications of the various levels of effort in the electricity sector for other pillars and sectors."

The demand side is important: In order to meet any of the targets at lowest cost, Australia’s 2030 energy efficiency technical potential needs to be met. This requires an additional effort to unlock a further 14 MtCO2e of abatement, or another third beyond current expectations from the National Energy Productivity Plan.

Principle 6: Climate policy should provide enabling conditions for uptake of emerging technologies to make the transition faster and cheaper.

Many of the technologies required for decarbonisation are available or under development. However further efforts in commercialisation, enhancement and integration will improve cost competitiveness and performance. Government support can assist our economy to develop and grow new technologies and services.

In particular, government can help accelerate the learning rates associated with new technologies to accelerate cost reductions and bring forward the ‘tipping point’ at which clean technologies become cost competitive with high emitting established ones. This is necessary for the rates of decarbonisation required to achieve the Paris Agreement.
Even when technologies are the same price as, or cheaper than, other more highly emitting technologies, they may still not be widely deployed. This may be due to the advantage of incumbency for the existing technology, or other non-price barriers. While these technologies do not require research and development support, encouraging their deployment may still need government intervention (such as regulation or incentives).

ClimateWorks would like to underscore the importance of the Finkel Review recommendations that support better regulation and management of new technologies (including storage), so that these can meet the need for reliable, affordable electricity.