The NEG explained, plus interview with Richard Di Natale

The National Energy Guarantee is an effort to provide affordable, reliable and low emissions energy. But would it actually work?

Source: SBS

Explainer video above, comment from Richard Di Natale below.

When nearly the whole of South Australia lost power in 2016, the Federal Government prompted the Energy Security Board to review the system. The result was an overhaul known as the National Energy Guarantee.

Energy retailers will have to sign contracts that agree to supply a minimum amount of energy for communities all the time.

Coal and gas would still make up most of the power generation and the rest, renewables.

Power companies will have to keep their emissions within the limits set out in the 2015 Paris Agreement. And under the proposed NEG, the target would be reviewed every five years and could even be lifted, if parliament agreed to do so.  

The energy industry reckons we could lose all coal power by 2050, but given the government is making reliability the main priority, some old coal stations may have to remain open in the near future.

Greens leader Richard Di Natale is keen to see coal-fired power stations shut down as soon as possible, so he's no fan of the NEG: