"With electricity prices still far too high following the sudden closure of Hazelwood and the surge in gas prices, more supply is needed to get prices down. And while the winning wind and solar farms are not dispatchable, they will provide an extra buffer to keep expected levels of unserved energy demand within the reliability standard.
"It is worth noting that long-standing bipartisan national energy policy, in the form of the RET, has helped make today's announcement possible: the first stage of the VRET is assisted by the RET. Without the NEG or other national energy policy, future State targets and auctions will be harder. Coordination between States and with the energy market authorities will be essential. But with national uncertainty inhibiting needed investment, even second best options are frankly welcome," Mr Willox said.
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