The future electricity industry starts when policy uncertainty

stops!

Brad PageChief executive Officer

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Electricity Today• Reliable energy source at the heart of economic

and social activity.

• Low cost energy; essential service features

• Current asset value of $120 billion, built over 50+ years

• Centralised generation model; customer relatively uninvolved

• Emissive – 35% of Australia’s total

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Electricity’s Opportunity• Growth story not a rustbelt industry

• Low emission electricity vital for deep emission reductions – big asset changes

• New uses: transport, water, HVAC

• More electricity used but efficiently – serious challenge

• Intelligent grids, embedded generation and connected consumers

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The future Australian electricity industry

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3 Key Issues

• Commitment and clarity of purpose

• Efficient and enduring policy mechanisms

• Community engagement

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Commitment and clarity of purpose

• Emission reduction = huge investment

• Capital attraction is main issue; risk minimisation is close relative

• What is to be achieved and by when - commit

• Comprehend sectoral capability and limitations - rate of change not the ultimate objective is the issue

• Many measures = interface issues = risk

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Efficient and enduring policy mechanisms

• Water and oil problem – big investments don’t like short-term policy making

• Bi-partisan agreement necessary – critical issue

• Policy intervention only where markets will fail

• Transition period is challenging

• Capital enabling not capital destroying – stranding assets send poor signal

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Community engagement

• Time for honesty with the community

• Action = cost

• No global action = more cost

• Price signals are important to achieve behavioural change

• Energy consciousness as an auto-reaction

The future electricity industry starts when policy uncertainty

stops!

Brad PageChief executive Officer