Keywords: carbon pricing regime, electricity pricing, energy efficiency, growth orientation, electricity use intensification, long run marginal costs, negative externality, renewable energy, Australia, sustainability, sustainable development
Australian electricity supply: orientations to growth and prospects for sustainability
In the new competitive order, Australian electricity systems have been oriented to growth of electricity sales based on low margins and the capture of market share. Electricity is a premium fuel. The second law of thermodynamics testifies to this, as does the relationship between coal-fired electricity and the negative externality of greenhouse warming. Electricity prices should reflect its status as a premium fuel. Ease of transition in such a regime would be fostered by the taking up of options for energy efficiency and renewable sources of supply.