Key points
- There will be no subsidies for renewable energy, or any other kind
- Power companies will be forced to guarantee on-demand electricity from coal, gas, hydro or batteries that store renewable energy
- They will also be forced to keep carbon dioxide emissions below a certain level
The government's new energy plan will force electricity retailers like Origin, AGL and Energy Australia to ensure they have a reserve of on-demand power from dispatchable sources like coal, gas or renewables batteries.
They will also be forced to ensure they limit their carbon dioxide emissions, under enforcement mechanisms yet to be discussed with state governments.
The Turnbull Government has agreed not to pursue a proposed clean energy target, as was recommended in a report from Australia’s Chief Scientist Alan Finkel. Instead it will implement a new so-called National Energy Guarantee.
The Guarantee will replace the previous Clean Energy Target, which will be met in 2020.
But there will be no more subsidies for renewable power.
Announcing the plan, Prime Minister Malcolm Turnbull said green sources of energy were now financially viable and could sustain themselves without government help.
"There is no need for a subsidy," Mr Turnbull said. "In other words, they can compete on a level playing field."
The Coalition party room signed off on the new National Energy Guarantee on Tuesday after a cabinet meeting voted to abandon the controversial renewables target on Monday night.
Chief Scientist Alan Finkel presented the government with 50 recommendations on energy policy in a report earlier this year.
The government has pledged to adopt 49 of them, but today the government confirmed it would not adopt the 50th - a clean energy target.
Instead the electricity companies will be forced to limit the carbon dioxide emitted in making the power they sell to a certain amount.
The amount is yet to be legislated but the government said it remained committed to meeting Australia's international carbon targets under the Paris agreement.
