Turnbull cabinet drops clean energy subsidies for new plan to guarantee reserve of available power

A Turnbull government backbencher has confirmed the clean energy target proposed by Chief Scientist Alan Finkel was rejected at a cabinet meeting on Monday night, but the government remains committed to the Paris climate accord targets.

Combination image: Australia's Chief Scientist Alan Finkel, Australian PM Malcolm Turnbull and Minister for Energy Josh Frydenberg Source: AAP

The Turnbull cabinet has agreed to drop the proposed clean energy target and will instead push the Coalition partyroom to adopt a new scheme designed to bring down prices and improve the grid’s reliability, according to backbencher Craig Kelly.

The Coalition partyroom will meet to finalise the government’s new energy policy later on Tuesday.

The plan is believed to include a regulatory scheme that will force energy retailers to guarantee they have a certain reserve of so-called dispatchable power – electricity than can be provided to the grid any time, on demand.

Solar and wind power are not considered dispatchable as they cannot always be called on instantly.

Coal and gas-fired power stations and batteries that store renewable power would meet the criteria.