The Morrison government is committed to backing a baseload power project, possibly coal, as it continues to assess a short list, says a senior minister.
Energy Minister Angus Taylor has promised a baseload power station will be among the projects to be underwritten by the federal government from a shortlist.
The government received 66 expressions of interest from the energy industry for underwriting, but has shortened the list to 12 projects.
Mr Taylor said the dozen had been chosen because they would have the fastest impact on delivering more supply and helping to drive down power prices.
Asked on 2GB radio on Friday whether a "coal-fired power station or something else that will bring baseload power" would be among the finalists to be supported, Mr Taylor said: "We are going to, make no mistake about it."
"We have a solution, we've got 12 projects, we are going to make the best of those happen and they will include baseload power amongst them," he said.
It was also possible others from the original 66 proposals could be considered down the track.
Meanwhile, the federal government is putting $2.46 million towards a trial to see how household battery energy can be combined to support the electricity grid.
Through the Australian Renewable Energy Agency, the government is contributing a slice of the total $4.9 million virtual power plant project.
The trial will run over 12 to 18 months, focusing on delivering energy to keep the grid stable.
A virtual power plant networks multiple rooftop solar panels and batteries so the Australian Energy Market Operator can control them as a single power plant.
About 2.5 gigawatts of new rooftop solar is installed each year and integrating the power created allows AEMO to stabilise the grid.
AEMO forecasts VPPs to have up to 700MWs of capacity by 2022, a significant increase from their current 5-10MW size.