Consultation document: modelling the electricity sector and emissions reduction policies

The Authority is seeking feedback on its proposed approach to electricity sector modelling. This work forms part of its Special Review of Australia’s emissions reduction targets and policies.

The Authority’s Special Review will pay particular attention to options for reducing Australia’s electricity sector emissions. The Authority’s analysis will include modelling to help compare a range of illustrative policy scenarios using a common set of input assumptions, including a common emissions constraint. The Authority has commissioned Jacobs to undertake this modelling.

The modelling work will have two broad phases.

Phase one will compare seven policies, broadly representative of those proposed and discussed in Australia in recent years. The Authority will evaluate the policies by comparing their performance across a range of quantitative and qualitative indicators of effectiveness, efficiency and equity.

In phase two, the Authority will select a sub-set of better-performing policy scenarios for further investigation, including sensitivity analysis and robustness tests.

The scenarios in the modelling exercise should not be interpreted as the Authority’s preferred policy positions or designs. In particular, the sectoral (rather than economy‑wide) focus of this modelling does not indicate a preference for sector-specific emissions reduction policies in the electricity or any other sector. The Authority will consider questions of policy scope and coverage as part of its broader Review.

The Authority welcomes comments on the proposed approach to the modelling, outlined in this consultation document. Feedback should be emailed to by 12 June 2015.

  • Consultation Paper: Modelling illustrative electricity sector emissions reduction policies (PDF 1.8MB) | (DOCX 1.2MB)