A panel of independent experts has urged Australia to adopt sweeping electricity market reforms to unlock long-term investment in clean energy and improve access to hedging tools, as grid volatility intensifies.
Among the proposed changes is a new framework offering long-term derivative contracts to support investment in stable and dispatchable renewables and storage projects, according to a draft review of the National Electricity Market’s wholesale sector. This would address “persistent” barriers to new investment — like the mismatch between long-term financing needs of new energy projects and short-term contracting horizons of buyers.
