A Case Study of Incentive Regulation in Electricity Transmission Networks for the Uptake of Renewable Energy: Build It and They Will Come

Electricity transmission is the blood line of the electricity industry and is a critical component in the transition towards renewable generation of electricity. This article analyses the current framework that regulates electricity transmission investment within the National Electricity Market and why the current incentive model for transmission investment is inadequate to facilitating the matching of transmission investment to the uptake of renewable generation. Alternative transmission investment models and regulatory approaches are comparatively assessed, including a case study of Texas and the development of renewable energy in Australia including offshore wind and solar PV. These case studies and alternative regulatory models showcase that more direct action is required if the transmission network is to adequately facilitate renewable energy generation uptake while also reducing prices for consumers.