Released 24/11/2017
In an initial gathering of Energy COAG Ministers, ACT Minister for Climate Change and Sustainability Shane Rattenbury has issued a blistering critique of the Federal Government’s proposed National Energy Guarantee (NEG)—calling instead for a range of changes to ensure the proposal “practically delivers” on a clean, reliable, affordable and secure energy future.
Speaking overnight in Hobart to government representatives and key energy stakeholders, Mr Rattenbury said that “while we understand what the NEG is trying to achieve, we are deeply concerned by elements of it.”
“We are concerned that that the NEG proposal could stymie the development of renewable energy. The AEMC modelling shows that the NEG will add little new renewable energy investment, and would only add an additional 1-4% of renewable energy capacity over ten years, compared to the business as usual scenario.
“Unlike the recent Finkel review, the proposal that’s been put to us so far seems to prevent states and territories that want to go further towards a clean energy future from achieving additionality.
“As a jurisdiction that will have 100% of our electricity coming from renewables in two years time, under the proposal put forward, we would be doing the heavy lifting and allowing others off the hook. This is not something that we can accept.
“We are also concerned that the NEG is only modelled to 2030. As to investor certainty, no-one I’ve spoken to in the energy sector says ten years suits their investment cycle. Investors and consumers need clear policy direction from our Federal counterparts about what we can expect until, and onwards, from 2050.
“There’s been a lot of talk about reducing prices for consumers. The NEG modelling suggests overall a potential reduction in $400 for a household, of which $280 comes from the renewable energy target (RET). The RET is the policy that’s already in place, and has proven to be highly effective. We’re concerned that we seem to be stepping away from a policy that has worked very effectively to set a pathway for reduced energy prices. We also believe that the modelling has been tailored to inflate the apparent cost-savings of the NEG proposal.
“We are equally concerned that the NEG seems designed to artificially extend the life of highly polluting coal generators.
“It’s clear that, when it comes to energy, Australians want more than just a band aid solution. To achieve a real solution, our Federal counterparts have no better allies in the states and territories. We’re here in Hobart to achieve a solution, and that’s what we intend to do.”
Mr Rattenbury outlined the ACT’s proposed changes to the NEG scheme, to be discussed further at today’s formal COAG proceedings.
“We need to provide a stable investment environment and long-term investment certainty. This includes striving for a net zero electricity emissions sector by 2050. This will help Australia effectively achieve its emissions targets, and it provides a point of certainty that we need if this proposal is to deliver."
“We need to complement, not undermine, the role of the electricity wholesale market as a signal for new infrastructure investment.
“We need to support retail competition, and not further entrench the power of the large incumbents.
“We need to be technology neutral, so as to facilitate flexibility and reduce cost to electricity consumers.
“We do need to support the development of renewables.
“We need to provide a mechanism that allows for additionality.
“A number of the states and territories have zero net emissions targets by 2050. This policy is crimping us from pursuing those targets that we have set. We need a Commonwealth policy that complements and fits with us—with what’s already well underway at the sub-national level.
“With some of the lowest electricity prices in the country, the ACT is proof positive that with the right conditions in place; investment in clean energy can deliver more than just a band aid solution.
“We’re committed to getting a good outcome at this meeting—and to getting on with lowering power costs, increasing competition, delivering clean energy, jobs and economic investment,” Mr Rattenbury concluded.
- Statement ends -
Shane Rattenbury, MLA | Media Releases
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