The Federal government has released the final piece of the energy policy puzzle, touting its new plan as a chance for Australia to break free from climate wars of the past. Coalition M-Ps were briefed on the scheme in Canberra today (tues), following cabinet's decision to reject a clean energy target as recommended by Chief Scientist Alan Finkel. Instead, the Coalition party room backed an idea from the new independent Energy Security Board.
Prime Minister Malcolm Turnbull and Energy Minister Josh Frydenberg have secured the backing of the joint party room for their new energy policy - the 'National Energy Guarantee'. Mr Turnbull sold it to Australia today - calling it a game changer. TURNBULL
"This is a national energy guarantee that will ensure that we have affordable power. That it is reliable. We keep the lights on and we can afford to keep them on, and that we meet our international commitments under the Paris Agreement to cut our emissions. In other words, it delivers affordability, reliability and responsibility."
And by affordability, it's estimated up to $115 in savings will be made to household bills each year from 2020 for 10 years. The Guarantee builds on the government's existing energy policy, which includes ensuring energy retailers offer consumers a better deal, delivering more gas for Australians before it's shipped offshore and building Snowy 2-point-0. Energy Minister Josh Frydenberg says it's a 'pro-market' policy, which will deliver lower electricity prices.
FRYDENBERG
"It means no subsidies, no taxes, no trading systems. And what it does do is it creates a more reliable, affordable energy system which helps us meet our international commitments."
The Guarantee is made up of two parts: a 'reliability guarantee' to ensure that energy is always available and an 'emissions guarantee' to contribute to Australia's international commitments. The reliability guarantee will see power companies required to use a certain amount of electricity from what is called dispatchable sources, like coal, gas or hydro to theoretically prevent blackouts. It means there will be room in the plan for a mix of energy sources, including solar and wind. Under the government's national energy guarantee, coal and gas will contribute between 64-72 per cent of energy generation by 2030. It's also expected to deliver 28 to 36 per cent renewables by 2030, much to the dismay of Labor's energy spokesman Mark Butler.
BUTLER
"Australia should have at least 50 per cent of its electricity delivered by renewable energy by 2030. We have said there are a range of mechanisms that can deliver that outcome."
He also argues the new plan would destroy the renewables sector.
BUTLER
"It would restrict growth in renewables over the course of the decade in the 2020s to less than half a per cent per year, which would cost thousands and thousands of jobs in the burgeoning industry, an industry that is growing exponentially all around the world."
The government now needs the backing of states and territories
