Renewable energy: Federal government concerned by NSW energy plan

Federal Energy Minister Angus Taylor has fired a broadside at NSW counterpart Matt Kean, taking aim at his renewable energy plan.

NSW Energy Minister Matt Kean has exposed households and businesses to the risk of even higher electricity prices through his go-it-alone $32bn renewables “roadmap”, according to the Morrison government.

Federal Energy Minister Angus Taylor is concerned the roadmap legislation before state parliament does not include a cap on costs that can be passed on to consumers.

One Nation’s NSW leader Mark Latham said the infrastructure bill contains a “new electricity tax” via a mandatory levy on distributors that would be ultimately recouped by adding to users’ bills.

Energy Minister Matt Kean has been slammed for his renewables roadmap. Picture: Supplied

Canberra was not consulted by Mr Kean on his blueprint prior to its announcement earlier this month; generators weren’t either.

A blindsided AGL Energy has since said it will delay both its final investment decision on a new gas-fired power station at Tomago, near Newcastle, and work to install giant batteries at its Liddell site in the Hunter while it comes to grips with the implications of Mr Kean’s move.

Mr Taylor will write to Mr Kean this week to request access to all roadmap modelling after an initial request by his department drew no response.

One Nation’s Mr Latham said he had tried five ways to get hold of the modelling but each was thwarted.

Mr Latham has also attempted to get the “dramatically flawed” legislation reviewed by a committee.

Federal Minister for Energy Angus Taylor will be writing to Mr Kean this week. Picture: AAP Image/Bianca De Marchi

However that failed ­because the Bill has the support of both Labor and the Greens.

“This is a huge outrage in terms of the public interest,” Mr Latham said.

“The stakes are very high with this. And it’s not about climate change. It’s about proper process.”

The only numbers released by Mr Kean suggest the infrastructure plan will lower prices. Critics such as Mr Latham say the state government has cherrypicked figures to suit itself.

Mr Latham said there was a real risk the roadmap wouldn’t trigger the level of renewable energy investment that had been claimed because the “assumptions are incredibly optimistic”.

But it may bring forward the retirement of reliable base­load generation. “So we could get the worst of both worlds,” Mr Latham said.

Mr Kean says his plan has the backing of manufacturers. Picture: Richard Dobson

Mr Taylor fears NSW’s plan could cause upheaval similar to what occurred after SA and Victoria brought about early ends to the Northern and Hazelwood stations, respectively.

A spokesman for Mr Taylor said those premature closures “caused serious problems and record high prices across the national electricity market for many years.

“We do not want to see a repeat of that in NSW,” the spokesman said.

Mr Kean said the roadmap would in fact avoid a Hazelwood-like situation, where Victorian prices rose 85 per cent after its demise.

It was a plan to address the reality that four out of five coal-fired plants in NSW would need to be replaced in the next 15 years, he said.

The roadmap had won the backing of manufacturers such as BlueScope, Mr Kean said. And he described his relationship with Mr Taylor as “constructive”.

Originally published as Renewable energy: Federal government concerned by NSW energy plan