National Energy Guarantee : Anything But Consensus

National Energy Guarantee fight continues

Image: 947051

Victoria and the ACT lay their cards on the table concerning the National Energy Guarantee, meanwhile the Smart Energy Council fires a shot across the bows of the CEC over its stance.

It’s just one day out from an important meeting that will focus on Australia’s energy future, and the way forward is as murky as it has ever been.

In order for the National Energy Guarantee to get across the line, all NEM states (and territory) need to give it the green light.

ACT: Serious Problems With NEG

The ACT has stated it will use the COAG Energy Council meeting tomorrow to seek “significant improvements” to the NEG, including:

  • An increase to the NEG’s 26% emissions reduction target.
  • The ability for states to maintain more ambitious renewable energy and emissions targets, additional to the national target for the electricity sector.
  • A resolution of the conflict with the ACT’s 100% renewable energy target.

“We can only support a national energy policy that genuinely advances renewable energy, and energy affordability,” said ACT Chief Minister, Andrew Barr on Monday. “The Commonwealth’s proposed NEG contains serious problems that need to be addressed or consumers and the climate will both lose out.”

Victoria : NEG Needs More Work

Yesterday, the Victorian Government also released its list of conditions in order for it to support the National Energy Guarantee:

  • Emissions reduction targets must only be permitted to increase over time, not decrease
  • Future targets will need to be set by regulation.
  • The targets will need to be set every three years, three years in advance.
  • Establishment of a transparent registry to ensure the NEG is working in the best interests of consumers.

“We can still get this right – but only if Malcolm Turnbull stares down the climate-crazies in his party and puts a workable scheme on the table that doesn’t hurt local jobs and households,” said Victorian Minister for Energy, Environment and Climate Change Lily D’Ambrosio.

SEC Vs. CEC On NEG

It’s a pretty sad state of affairs and a good indicator of how messed-up the NEG situation is that even within Australia’s renewable energy sector, internal bickering is occurring.

The Clean Energy Council has maintained an open mind on the NEG, and has acknowledged a number of concerns about its design. However, the Smart Energy Council sees the CEC’s position as weak and launched an attack on the body yesterday.

The SEC took issue with the CEC being a signatory on an open letter urging the States to lock in the National Energy Guarantee (NEG), a letter that was signed by a number of companies including Adani.

“Who does the Clean Energy Council speak for?” asks the Smart Energy Council. “The Smart Energy Council stands up for consumers and the renewable energy industry, from installers to global companies, when the CEC won’t.”

Abbott And Kelly : Yeh, Nah.

As for the NEG having solid support in the Coalition party room, that’s hardly the case – and no prizes for guessing who two of the holdouts are.

Tony Abbott : “We haven’t agreed”, “bad policy”.

Craig Kelly : “I think realistically we would need more time to consider this. There is a lot of complex detail yet to be released.”

The certainty this country and investors need concerning Australia’s energy future still seems to be some way off, but who knows – miracles supposedly do happen.

It’s all well and good for the Federal Energy Minister and Energy Security Board to be turning up the pressure and using scare tactics to get the NEG over the line tomorrow (whatever line that may be), but if they can’t get their way because the NEG is a truly bum deal; that’s on them rather than the governments opposing it.

About Michael Bloch

Michael caught the solar power bug after purchasing components to cobble together a small off-grid PV system in 2008. He's been reporting on Australian and international solar energy news ever since.

Comments

  1. David Quick says

    Reducing energy emission targets is a real furphy being used as a political football. What, exactly, is in the NEG- anyway. How can anybody comment without knowing that? Beware of any scheme that gets such enthusiastic support from the energy providers and companies like Adani because they sure as hell are not interested in anything other than profits. If we reduce Australia’s emmisions to absolute zero the global effect would be micro negligible. If we were to reduce coal exports to zero (I know it’s not practical) that really would make a difference. Why isn’t our government seeking 50 per cent partnership deals on selling our coal, or at least charging decent royalties instead of tax on coal companies. Couldn’t doge that with rubber books, could they.

  2. Chris Thaler says

    It’s irrelevant that Australias’ efforts are minimal on the world stage, the fact of showing leadership helps others to change their mindset/s.

    The NEGative scheme (minus details) that is proposed will not achieve anything beyond what we already have. Good on Vic. & ACT for holding out for complete detail in advance.

    RE; CEC – v – SEC, Previous utterings by the CEC have been shown to be technically incorrect and often partisan.

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