Institutional adaptability to redress electricity infrastructure vulnerability due to climate change

Infrastructure Sustainability Climate change Power resources Economics Industries Australia

The objectives of this project are to examine the adaptive capacity of existing institutional arrangements in the National Electricity Market to existing and predicted climate change conditions. Specifically the project aims to:

1. identify climate change adaptation issues in the NEM;

2. analyse climate change impacts on reliability in the NEM under alternative climate change scenarios to 2030, particularly what adaptation strategies the power generation and supply network infrastructure will need; and

3. assess the robustness of the institutional arrangements that supports effective adaptation.

This report provides an extensive literature review to inform and to develop research questions for the project’s final report. The review finds that four factors are hindering or required for adaptation to climate change:

1. fragmentation of the NEM, both politically and economically;

2. accelerated deterioration of the transmission and distribution infrastructure due to climate change requiring the deployment of technology to defer investment in transmission and distribution;

3. lacking mechanisms to develop a diversified portfolio of generation technologies and energy sources to reduce supply risk; and

4. failing to model and to treat the NEM as a national node based entity rather than state based.

The final report has been published and is now available:

Analysis of institutional adaptability to redress electricity infrastructure vulnerability due to climate change


Authors: John Foster (33) (, William Paul Bell (32) (, Craig William Froome (29), Phil Wild (, Liam David Wagner (29) (, Deepak Sharma, Suwin Sandu, Suchi Misra and Ravindra Bagia. Energy Economics and Management Group Working Papers from School of Economics, University of Queensland, Australia

Publication Details