Chief Scientist Dr Alan Finkel presents landmark energy review at COAG meeting

ELECTRICITY costs will be lowered and the national energy market made more reliable under a bold plan which protects the future of coal while also incentivising renewable energy.

Australia's Chief Scientist Dr Alan Finkel delivered his review to the federal and state governments at the COAG meeting. Picture: Mathew Farrell

• Plan to end energy war
• ‘Once-in-a-lifetime’ Finkel review arrives
• COAG: McGowan on attack over GST distribution

ELECTRICITY costs will be lowered and the national energy market made more reliable and secure under a bold plan which protects the future of coal while providing incentives for more renewable energy.

Chief Scientist Alan Finkel has presented his review of the national electricity market to Prime Minister Malcolm Turnbull and state premiers at the Council of Australian Governments meeting in Hobart this afternoon.

The landmark 212-page report aims to end political fighting about climate change and energy policy — which Dr Finkel says has pushed up power prices — with a new national approach.

“Its key feature is an orderly transition to bring new generation into the market to improve reliability,” he said.

“Participation is based on low emissions, not technology type. There are no prohibitions, just incentives.”

Dr Finkel proposes the implementation of a clean energy target to provide incentives for all generators to produce electricity below a set threshold for emissions.

MORE COAG: GOVERNMENTS TO TOUGHEN UP PAROLE AND BAIL LAWS

Prime Minister Malcolm Turnbull delivers the introductory remarks to the Council of Australian Governments (COAG). Picture: Rob Blakers / AAP

This means coal-fired power stations will be able to continue, using carbon capture and storage technology to produce cleaner power.

Generators will receive certificates which are then purchased by electricity retailers to show their power sources produce low emissions.

Modelling produced for Dr Finkel’s report found the clean energy target resulted in cheaper power prices than an emissions intensity scheme.

To improve security of the network, power generators will also need to use battery and pumped hydro technology to store energy to protect against blackouts and network failures.

Other key recommendations include:

COAL-FIRED power stations and other major generators must give three years’ notice before closing.

GOVERNMENTS should work with communities for “safe exploration and production” of gas.

MAJOR security upgrades to safeguard the national electricity network amid “growing concern” about cyber security and “potential malicious threats” from hackers.

REWARDS for consumers who reduce their energy demand when needed.

CLEARER information about power prices so consumers can find better offers and move between retailers more easily.

AN ongoing commitment to reduce emissions by 28 per cent below 2005 levels by 2030, as Australia agreed to in the global Paris accord, with an ambition to head towards zero emissions by the second half of this century.

INCENTIVES offered to encourage the development of new power generators.

By 2050, the report predicts that with a clean energy target, 35 per cent of Australia’s power would be produced by wind farms.

Chief Scientist Dr Alan Finkel arrives at Blundstone Arena for the COAG meeting. Picture: Mathew Farrell

Coal-fired power stations would produce 24 per cent, solar would produce 29 per cent, and hydro would produce eight per cent.

Dr Finkel said consumers were “at the heart” of the nation’s electricity system and his plan to ensure its security and reliability.

“The actions of consumers will be harnessed to improve the reliability and security of the electricity system and keep costs down,” he said.

“Consumers will be better informed and rewarded for managing their electricity demand. System upgrades and new generation will be achieved at lowest cost.”

[e-mail]

@tminear