On 17 October 2017, the Australian Business Economists hosted a Lunchtime Briefing in Sydney featuring Dr Bruce Mountain, Director of CME Australia. Dr Mountain delivered a thought-provoking presentation on the intersection of energy markets, carbon emissions, and finance, exploring the dynamics of Australia’s evolving energy landscape.

Dr Mountain examined key trends across wholesale, network, and retail markets, highlighting record-high electricity spot prices and the declining reliance on the grid as distributed energy technologies, such as solar photovoltaics (PV) and battery storage, gain traction. He addressed the implications of these shifts for policy and market participants, emphasising the need for regulatory reform to address disparities in network asset values and ensure fair outcomes for consumers.

This session offered a comprehensive overview of the challenges and opportunities facing Australia’s energy markets. Dr Mountain underscored the critical role of distributed energy in shaping the future of the energy sector while posing essential questions about the sustainability of current systems and the urgent need for market adaptation.

Key Takeaways

• Distributed Energy Growth: Rooftop solar PV installations are at an all-time high, with batteries rapidly becoming cost-competitive, reducing dependence on the shared grid.
• Market Inefficiencies: High electricity prices and disparities in regulated asset values highlight the need for reforms to ensure fair distribution of costs and benefits.
• Policy Imperatives: Governments must focus on enabling households and businesses to leverage distributed energy technologies while addressing inefficiencies in the shared system.

Dr Mountain’s address underscored the transformational impact of distributed energy technologies on Australia’s energy markets. By advocating for regulatory and policy changes to align with technological advancements, the briefing provided valuable insights into creating a sustainable and equitable energy future.