Some strengths and weaknesses of electricity industry restructuring in Australia

Electricity industry restructuring is a complex, multidisciplinary problem that requires a consistent approach to its engineering, economic, commercial and socio-political aspects to achieve a satisfactory outcome. Moreover, all aspects of the energy conversion chain, from primary energy forms to end-use energy services, should be consistently addressed so that options at all points in the energy conversion chain receive equal consideration, including fossil and renewable fuels and demand-side options and their associated external impacts. After discussing underlying principles and the conceptual model on which the Australian national electricity market design has been based, this paper reviews progress to date in electricity industry restructuring in Australia and discusses the challenges that lie ahead. It concludes that there have been significant achievements but that important issues remain to be addressed, and that the restructuring process, which commenced in the early 1990's, may require another decade to complete.