Pole poverty outlined
A lack of action on transmission wires could be driving up power bills for consumers.
EnergyAustralia CEO Mark Collette has raised concerns about higher power bills for customers due to difficulties in local communities and skill shortages hampering crucial transmission projects.
Collette's remarks followed a report by the Clean Energy Council, revealing that no new renewable energy projects had received final investment decisions in the first quarter of the year, despite active construction.
The government had set ambitious targets for renewable energy supply, but the approval and construction of new transmission lines have been slow, causing grid congestion and curtailing the output of wind and solar projects.
These challenges have made financiers more cautious about supporting new renewable energy ventures.
Two major transmission projects, Humelink and VNI West, are facing community acceptance issues and delays.
The Australian Energy Market Commission has been working on reforms to the regulatory investment test-transmission (RIT-T) but a new report by Nexa Advisory suggests a more radical change is needed to the approvals process.
The report proposes allowing global transmission companies to compete for major transmission projects, potentially saving energy users $13 billion over 15 years.
Critics, including Bruce Mountain from the Victorian Energy Policy Centre, argue that smaller grid enhancements could serve the same purpose at a lower cost.