Executive summary globalisation of gas is challenging how gas is priced and used in the Australian context; structural changes in the economy are For decades the energy supply industry was impacting on energy demand, including accustomed to continuous growth in demand. the growth of the services sector relative This predictable demand growth made it easier to traditional, more energy intensive for businesses and government to make industries; and decisions regarding infrastructure investment. finding a long term solution to managing Electricity, in particular, was a key driver of carbon emissions. Tasmania’s industrialisation and modernisation through the 20th century, with hydro Due to the structure of the Tasmanian energy industrialisation giving Tasmania an advantage market, the uncertainties encompassed in in attracting new industries to the State and potential changes present risks and increasing our living standards. opportunities for Tasmania. It is vital that Tasmania has a strategy to position the State to However, the maturing of the economy over the capture the benefits and effectively manage the course of the last century, along with energy risks of these changes, and once again make market changes, means that how energy is used energy a competitive advantage. The 20 year and its role in growing the economy has horizon of the Tasmanian Energy Strategy is changed and is likely to change even more designed to ensure actions taken over the short rapidly in the years ahead. Unfortunately, term position Tasmania to respond to the long Tasmania until now has not had a clear strategy term changes that are occurring. to navigate through these changes and as a consequence our traditional comparative In developing a Tasmanian Energy Strategy our advantage in energy is not what it once was. vision is to: energy as a competitive “Restore advantage for Tasmania by: The traditional supply model of the energy industry, particularly the electricity industry, is facing challenges. Australia’s energy landscape delivering affordable energy at competitive is changing with consumers becoming more and predictable prices that are amongst active in managing how their energy needs are the lowest in Australia; met. The challenges include: empowering consumer choice; ensuring an efficient energy sector that is distributed generation is playing an customer focussed; increasing role in the supply of electricity; utilising energy to facilitate State growth; emerging technologies are opening up the and products and providers that a consumer maximising Tasmania’s renewable energy can choose from; opportunities.”
Executive summary For decades the energy supply industry was accustomed to continuous growth in demand. This predictable demand growth made it easier for businesses and government to make decisions regarding infrastructure investment. Electricity, in particular, was a key driver of Tasmania’s industrialisation and modernisation through the 20th century, with hydro industrialisation giving Tasmania an advantage in attracting new industries to the State and increasing our living standards. However, the maturing of the economy over the course of the last century, along with energy market changes, means that how energy is used and its role in growing the economy has changed and is likely to change even more rapidly in the years ahead. Unfortunately, Tasmania until now has not had a clear strategy to navigate through these changes and as a consequence our traditional comparative advantage in energy is not what it once was. The traditional supply model of the energy industry, particularly the electricity industry, is facing challenges. Australia’s energy landscape is changing with consumers becoming more active in managing how their energy needs are met. The challenges include: distributed generation is playing an increasing role in the supply of electricity; emerging technologies are opening up the products and providers that a consumer can choose from; globalisation of gas is challenging how gas is priced and used in the Australian context; structural changes in the economy are impacting on energy demand, including the growth of the services sector relative to traditional, more energy intensive industries; and finding a long term solution to managing carbon emissions. Due to the structure of the Tasmanian energy market, the uncertainties encompassed in potential changes present risks and opportunities for Tasmania. It is vital that Tasmania has a strategy to position the State to capture the benefits and effectively manage the risks of these changes, and once again make energy a competitive advantage. The 20 year horizon of the Tasmanian Energy Strategy is designed to ensure actions taken over the short term position Tasmania to respond to the long term changes that are occurring. In developing a Tasmanian Energy Strategy our vision is to: “Restore energy as a competitive advantage for Tasmania by: delivering affordable energy at competitive and predictable prices that are amongst the lowest in Australia; empowering consumer choice; ensuring an efficient energy sector that is customer focussed; utilising energy to facilitate State growth; and maximising Tasmania’s renewable energy opportunities.”