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Electricity

Goodbye Gas, Hello Pumped Hydro – Liddell extension and the impact of Snowy 2.0

  • In the absence of a Clean Energy Target, the extension of Liddell and the expansion of the Snowy Hydro scheme represent the two core pillars of the government’s energy policy framework. In this update, we examine the impact of these measures on the market, namely the impact on wholesale electricity prices, and the interaction with continuing elevated gas prices.
  • Should no new energy policy be implemented, elevated electricity prices are largely projected to continue, partially mitigated by 13 GW of rooftop solar and 5 GW of newly available large-scale generation incentivised by federal and state renewable energy targets.

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