The National Energy Guarantee Creates Losers all Round
The truth about the National Energy Guarantee is that, if the COAG Energy Ministers’ Council endorses the latest plan of the Energy Security Board (ESB), then the energy debate is all over because the chances of a new coal fired power station being built will be zero; the current emissions targets will be locked in until 2030; and there is very little chance that the price of power will fall.
At the moment everyone sees themselves as a loser under the ESB’s plan.
The states are angry that they cannot introduce new clean energy targets; the renewable energy industry claims that it will curtail future investment in renewables because the emission targets are too low; supporters of coal are angry that the trajectory of emission cuts will prevent the construction of a coal fired power station; big consumers are concerned that they are being fitted up with the cost of making the system reliable and are having to do too much of the heavy lifting; and retailers don’t like the prospect of being fined $100 million if they fail to meet emission reduction targets and may be precluded from using cheap offsets.
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