Energy 

Energy is fundamental to development.

The Northern Territory covers a land area of about 1.35 million square kilometres, and is sparsely populated. The Territory is a developing economy, with a small industrial base, and is yet to develop a critical mass and diversity in its energy sector to realise attractive energy costs to underpin the growth of a broader economic base.

An Energy Policy for the Northern Territory has been developed in consultation with private and public sector stakeholders. The Energy Policy is aimed at achieving long-term security and sustainability of energy supplies, the most competitive price possible to encourage investment in establishment of industry, and at improving the lifestyle of all Territorians.

Significant resources of natural gas and renewable energy are potentially available to the Northern Territory. The Energy Policy focuses on developing gas resources and diversifying energy sources, including the development and greater utilisation of renewable energy sources and alternate transport fuels. An action plan directed towards strategies and key initiatives to achieve the objectives of the Energy Policy is being developed.

The Northern Territory Government encourages the adoption of renewable energy, particularly in remote areas that are not serviced by an electricity grid. The Department of Regional Development, Primary Industry, Fisheries and Resources (RDPIFR) is currently administering development of renewable energy projects under the Australian Government Renewable Remote Power Generation Program. The Renewable Remote Power Generation Program is now closed to new applications in the Northern Territory. As of 8.30 am Australian Eastern Standard Time on Monday 22 June, applications are no longer being accepted for the Renewable Remote Power Generation Program.

RDPIFR plays a key role in liquid fuel emergency planning. It coordinates the Fuel Emergency Advisory Committee, which is responsible for developing a coordinated government response to liquid fuel crises in the Territory.

In addition the Northern Territory is a member of the National Oil Supplies Emergency Committee (NOSEC). NOSEC is the main executive channel through which Australian Governments, in cooperation with industry, formulate the overall management response to a widespread fuel shortage.

RDPIFR contributes to the national development and implementation of energy efficiency standards for buildings, appliances and equipment.

The Northern Territory is participating in the national energy market reform program. The Territory has signed the Intergovernmental Agreement ( Australian Energy Market Agreement) and endorsed the legislation for the establishment of the Australian Energy Market Commission and the Australian Energy Regulator.

The Northern Territory electricity grid is not connected to the national electricity market however the Agreement provides for the Northern Territory at its discretion and in consultation with the Ministerial Council on Energy to become subject to the jurisdiction of the AEMC and the AER in respect of electricity.

The Northern Territory natural gas network is currently regulated by the Australian Competition and Consumer Commission (ACCC) under the National Gas Pipeline Access Regime and will be subject to the new regulatory arrangements for natural gas on 1 July 2005.