Will It Be A Clean Or Coal Energy Target?

Australia may be heading for a dirty energy target | Image : Pavlofox

The Clean Energy Target (CET) appears to be at risk of becoming somewhat of a Coal Energy Target – and the CEC has expressed serious concern.

Yesterday, the ABC and other news services reported the Federal Government is perhaps doing a little more than just tinkering at the edges of the Clean Energy Target (CET) recommended in the Finkel Review, the only one out of 50 recommendations the government is yet to accept.

“The re-shaped CET would come under a new name, with a revised target below that recommended by Dr Finkel. It would allow for high efficiency, low emissions coal-fired power stations to access subsidies,” stated the ABC.

Among the issues with so-called high-efficiency, low emissions (HELE) coal plants is they aren’t much lower in CO2 emissions, only marginally reduce other toxic emissions and are horribly expensive.

The former chief executive of the Clean Energy Finance Corporation (CEFC), Oliver Yates, said the rumoured plan was almost the inverse of what Dr. Finkel recommended, calling it a “dirty energy target.”

Back in June, the Prime Minister said the CET had a lot of merit and seemed generally quite upbeat about it.

However, News.com.au reported yesterday some MPs were ready to cross the floor if Prime Minister Turnbull proceeds with current version of CET. It probably won’t come as any surprise that ex-Prime Minister Tony Abbott appears to be one of the key players sowing or stoking dissension among the ranks.

Mr. Abbott stated some years ago that coal was good for humanity, but many would beg to differ. A recent report from EJA called it “toxic and terminal“. In May, Oxfam said continuing to pursue coal will reinforce poverty.

One of the interesting/curious/perplexing things about all this is the little black rock still plays a substantial role in the unadulterated CET – reportedly more so than under business as usual (for a while anyway); giving plenty of time for transition. But it’s a transition that some fossil fuel interests simply don’t want in any form.

The Clean Energy Council says it would be foolhardy for the Government to step away from the CET as recommended as it was a critical part Dr Finkel’s suggested reforms.

“A Clean Energy Target (CET) was recommended by the Finkel Review as a crucial part of a considered roadmap towards ensuring a clean, affordable and reliable energy system for Australia, and walking away from that policy would be a clear step in the wrong direction,” said CEC Chief Executive Kane Thornton.

Using the example of the nearly-knackered Liddell Power Station, currently the focus of much bickering and some recent shirt-fronting, Mr. Thornton said there were a range of solutions to replace coal; including large-scale wind and solar combined with storage. Demand-side solutions included rooftop solar power and batteries – such as our very own PM has installed.

“These solutions are here now and commercially feasible. Substantial cost reductions this decade show these solutions can be delivered to Australian power consumers while minimising costs,” he said.

Mr. Thornton warned policy-on-the-fly and regulatory flip-flopping spooks investors and only leads to under- investment in new generation – and it was this that was partly responsible for driving energy price increases; not renewables. This conclusion isn’t wishful thinking on the CEC’s part as a common theme stated by electricity retailers for price hikes in July was an uncertain policy environment.

SolarCitizens has launched a petition concerning the “dirty energy target” reports, urging the Turnbull Government to “stop with the go-nowhere politics, get out of the party room and get on with the job of locking in a sunny, renewable-powered future.”