In a report released today the Grattan Institute has endorsed the concept of reverse auctions to drive the deployment of renewable energy at the lowest and most competitive price. The ACT is currently the only jurisdiction in Australia using reverse auctions to deploy large scale solar generation.
This report is a strong endorsement of the policy approach adopted by the ACT Labor Government to make Canberra Australia’s solar capital. I have consistently argued the reverse auction process is the best way of providing the certainty needed for investment in large scale renewable energy generation, at the lowest cost for consumers.
Importantly the Grattan Institute also reiterates that such measures are complimentary to a carbon price, and that a carbon price alone will not deliver the investment needed in renewable energy generation.
The ACT Labor Governments Big Solar Reverse Auction is currently close to finalisation, with the successful bid or bidders in the first tranche of 20MW of solar generation expected to be announced in August this year. A further 20MW allocation is due to be announced early next year.