Power to reverse auctions
AUSTRALIA’S Chief Scientist and author of a landmark report into Australia’s energy sector says reverse auctions are being used around the world to deliver new energy generators.
The Turnbull Government is reportedly considering a system of reverse auctions to replace ageing coal- fired power stations with new generation clean coal plants.
Dr Alan Finkel said the Government was entitled to make any “deliberate decision” to introduce a new coal- fired power station once it had assessed the needs of the market.
He said a reverse auction could be used to deliver any type of new power generator, including renewables or coal.
Dr Finkel said Germany was the “beacon country” for using reverse auctions, in particular for offshore wind generation.
“The idea of reverse auction, the strength of it … is to get the lowest price,” he said.
Prime Minister Malcolm Turnbull has not ruled out the Federal Government financing and building a coal- fired power station in North Queensland if it is needed to meet market demand and keep prices down.
Known as HELE ( high efficiency, low emission) plants, the next generation power stations are used widely in China and Japan.
The Government has endorsed 49 out of the 50 recommendations in the Finkel report, but is yet to commit to a clean energy target, amid warnings from backbenchers, including former prime minister Tony Abbott, that any clean energy target is anti- coal.
Julian Tomlinson: page 15