Climate and electricity policy integration: Is the South Australian electricity market the canary in the coalmine?

Abstract

An examination of the dynamics of the South Australian market finds that decarbonization-related policy objectives for the South Australian electricity system are unachievable with continued reliance upon an energy-only market. To avoid extreme pricing volatility and possible security of supply issues, it is vital that Australia urgently review its energy market frameworks to ensure they are better integrated with climate change policies.