Electricity tariffs in a high-penetration renewable system: Insights from Australia’s National Electricity Market

This paper considers the various supply-chain segments in the Australian NEM where significant adoption of renewable technologies has occurred. In the long-term, customers may be best served by 'fixed' or 'cap' style pricing contracts that allow unlimited energy consumption within a 'fixed' capacity band. This would be underpinned by economically regulated transmission and distribution 'demand' tariffs and a liquid market for innovative derivative products alongside an efficient wholesale energy dispatch engine.