National Energy Guarantee
A few weeks ago, I wrote that Australia needs a Reliable Energy Target. As I indicated, reliance on intermittent renewable energy had forced up prices and resulted in unreliable supply. This is a case that I have been arguing with Parliamentary colleagues for some time now.
It is pleasing therefore that the government has rejected the proposed Clean Energy target, and plans to phase out subsidies to renewables in 2020.
Although modelling for the proposal for a National Energy Guarantee is still to be undertaken, and agreement has to be reached with the states, it is a welcome advance towards a more realistic policy that should deliver more reliable and less expensive power. It is designed to give certainty to investors in base load power generation.
A commitment to utilising our abundant resources, such as coal and gas, is a critical element of any realistic policy. As I have written before, there are dozens of new clean-coal power stations currently being built around the world.
By contrast, Labor’s approach would cost an additional $66 billion in subsidies over the next few decades, lead to higher energy costs, and more blackouts like we have witnessed in South Australia.