AGL Energy (AGL) welcomes the opportunity to contribute to the Guarantee of Origin (GO) consultation paper.
An enduring product certification for low emissions commodities
As customers become more engaged in the energy transition, there is also increasing scrutiny on the detail of products that claim to be supporting emissions reductions, and a need to be able to measure green electricity production from generation through to end-use.
Certification of green electricity is therefore a key element not only of driving decarbonisation in the electricity sector, but also supporting decarbonisation of other products and services that use electricity as an energy input. In particular, we note the importance of this with respect to the development of a green hydrogen economy for Australia, and the ambition of several Australian governments to drive this outcome.
In the present consultation, the development of a Product GO is complicated by a parallel consultation for a new enduring certification scheme for renewable electricity (REGO). While we are supportive of developing a REGO, it is important that the development of a Product GO does not adversely impact electricity markets via unintended consequences. To the extent that the phased implementation of a REGO may impact on the development of a Product GO, we would support the government considering how a Product GO could be phased in over time to avoid distorting the electricity market.
While we support swift action to resolve the gaps in coverage of the RET and to support the acceleration of the energy transition and the development of a green hydrogen economy, some caution should be exercised to ensure that immediate actions do not have the effect of unintentionally dampening the important investment signals currently provided by the RET out to 2030.
A copy of AGL’s submission to the GO consultation is available here.