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The impact of climate change on generation and transmission in the Australian national electricity market

Author

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  • Bell, William Paul

Abstract

This paper aims to identify climate change adaptation issues in the Australian National Electricity Market (NEM) by assessing the robustness of the institutional arrangements that support effective adaptation from the supply side. This paper finds that three major factors are hindering or are required for adaptation to climate change: institutional fragmentation both economically and politically; distorted transmission and distribution investment deferment mechanisms; and lacking mechanisms to develop a diversified portfolio of generation technology and energy sources to reduce supply risk. Proposed solutions to the three factors are discussed. These proposed solutions are tested and examined in forthcoming papers.

Suggested Citation

  • Bell, William Paul, 2012. "The impact of climate change on generation and transmission in the Australian national electricity market," MPRA Paper 38111, University Library of Munich, Germany, revised 29 Feb 2012.
  • Handle: RePEc:pra:mprapa:38111
    as

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    File URL: https://mpra.ub.uni-muenchen.de/38111/1/MPRA_paper_38111.pdf
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    File URL: https://mpra.ub.uni-muenchen.de/47788/8/MPRA_paper_47788.pdf
    File Function: revised version
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    References listed on IDEAS

    as
    1. John Foster & William Paul Bell & Phil Wild & Deepak Sharma & Suwin Sandu & Craig Froome & Liam Wagner & Suchi Misra & Ravindra Bagia, 2013. "Analysis of institutional adaptability to redress electricity infrastructure vulnerability due to climate change," Energy Economics and Management Group Working Papers 6-2013, School of Economics, University of Queensland, Australia.
    2. John Foster & Liam Wagner & Phil Wild & William Paul Bell & Junhua Zhao & Craig Froome, 2011. "Final Report: Market and Economic Modelling of the Intelligent Grid," Energy Economics and Management Group Working Papers 12, School of Economics, University of Queensland, Australia.
    3. John Foster & Liam Wagner & Phil Wild & William Paul Bell & Junhua Zhao & Craig Froome, 2011. "Market and Economic Modelling of the Intelligent Grid: Interim Report 2011," Energy Economics and Management Group Working Papers 11, School of Economics, University of Queensland, Australia.
    4. John Foster & Liam Wagner & Phil Wild & Junhua Zhao & Lucas Skoofa & Craig Froome & Ariel Liebman, 2011. "Market and Economic Modelling of the Intelligent Grid: End of Year Report 2010," Energy Economics and Management Group Working Papers 10, School of Economics, University of Queensland, Australia.
    5. John Foster & William Paul Bell & Craig Froome & Phil Wild & Liam Wagner & Deepak Sharma & Suwin Sandu & Suchi Misra & Ravindra Bagia, 2012. "Institutional adaptability to redress electricity infrastructure vulnerability due to climate change," Energy Economics and Management Group Working Papers 7-2012, School of Economics, University of Queensland, Australia.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Climate change adaptation; electricity generation; electricity transmission; Australian National Electricity Market;

    JEL classification:

    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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