James Campbell: PM prays Snowy Mountains Scheme 2.0 doesn’t melt

MALCOLM Turnbull needed to show he has something to the energy debate other than lectures to the states. A Snowy Mountains Scheme 2.0 plan is a good start, writes James Campbell.

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AFTER wading into the energy debate Malcolm Turnbull needed to show he has something to contribute other than lectures to the states about their bloody-mindedness.

Announcing a plan for Snowy Mountains Scheme 2.0 is a good place to start.

The scheme will work by buying power from the national grid at night (when it is cheap) and using it to pump water uphill, which will then be released to power turbines producing electricity to be sold during the day when it is needed (and worth a lot more).

All year the government has been kicking the living daylights out of the Opposition over its commitment to renewable energy. In the process the PM has — almost incrementally — raised expectations he can fix the problems of the country’s busted energy policy.

If that doesn’t happen — and electricity bills keep rising — he can expect to wear some of the blame.

Wednesday’s crisis meeting over the shortage of natural gas will also have raised expectations.

The industry has agreed to guarantee there will be gas to meet peak demand during heatwaves meaning the lights and airconditioning will stay on. Good news, Australia!

But from my reading of the press release, there is no such guarantee for manufacturing.

Bill Shorten has already jumped in and said he would reserve gas to protect domestic industry.

The government is leaving the option on the table but at this point is shying away from saying it will follow suit.

It is difficult to understand why. If Australia doesn’t have enough gas for its own needs in the next couple of years as well as meeting its export obligations nasty choices are going to have to be made.