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What to know about the MIB in Australia

The new MIBs are supposed to be used to boost Australian electrical output, but the rollout hasn’t exactly gone as planned. 

Australia’s National Electricity Market Operator (NEMO) says the new MIs will increase the country’s power output by a third by 2040. 

In reality, the MIs only increase the output of Australian electricity by 2.5% a year. 

But that’s still a lot more than you’d get out of the same amount of power generated from coal or nuclear, let alone from wind or solar. 

The MIs are also supposed to cut carbon emissions by a similar amount, but this also depends on how much carbon emissions Australia actually emits. 

Some analysts have suggested that the MIGs are even worse than the Clean Energy Finance Corporation’s estimates, which have been used by NEMO to make its projections. 

As we reported earlier this year, the CEC’s own carbon emissions projections were significantly more optimistic, but they are still conservative. 

If you’ve ever wondered what it would take to actually meet the CEA’s goals, you can read about that here. 

However, it appears that the CEP is now more concerned with achieving their goals by 2034 than with reducing emissions. 

“The Government is committed to reducing CO2 emissions in the short-term and to achieving a higher level of electricity supply by the middle of the century,” the CCE said in a statement, adding that it would “seek to increase electricity supply through MIB projects by 2035.” 

NEMOs new MI strategy also includes a “green power” scheme. 

This involves buying electricity from renewable energy providers that are either on a carbon tax or have zero carbon emissions.

The CCE says the scheme will allow NEMOs to “buy energy from renewable generation sources that are more carbon-neutral” and use “renewable energy sources to provide electricity to the national grid.” 

However this could potentially undermine Australia’s efforts to reduce emissions, which could lead to higher carbon prices for the consumer. 

We have also seen similar proposals from other countries, with some claiming that their energy prices are already “too high” due to the CCC’s plans. 

There is no way of knowing whether these plans will be implemented in Australia, as the CCO is the one who determines whether a given scheme is appropriate or not. 

For now, however, the Australian government is sticking to its guns, claiming that it has a plan for the MIPs that is “pro-competitive.” 

“Australian electricity consumers are entitled to expect that the Government’s renewable energy targets will be met,” the statement says.

“It is important that the renewable energy target remains at its current level of 20% by 2030, and will be matched by a carbon price to ensure that Australians are not left out of a world-leading energy system.” 

So far, this plan has not been confirmed by the NEMP, but we’ll keep you posted.

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