NSW willing to ‘go it alone’ on integrated energy policy: minister
NSW warns it could “go it alone” on energy if Canberra fails to introduce an integrated policy.
NSW is “willing to go it alone” delivering lower power prices and less emissions if the Morrison government fails to introduce an integrated energy and climate policy.
The state’s energy minister Matt Kean delivered the ultimatum as frustrations grow over the Coalition’s lack of policy ambition since Malcolm Turnbull’s national energy guarantee was dumped last year.
“We need a national framework that properly integrates climate and energy policy,” Mr Kean told the Clean Energy Summit in Sydney today. “The NSW government still supports the national energy guarantee. If the Commonwealth will not get on board, NSW will consider going it alone.”
Federal Labor took the NEG to the election as part of its policy platform which had enjoyed broad support among big business as a way of ending a decade of climate wars.
However, Scott Morrison says the Australian people rejected Labor’s more ambitious climate ambitions.
Instead, the Coalition will forge ahead with elements of the policy including the retailer reliability obligation to ensure enough generation exists to meet power users’ needs and the looming ‘big stick’ legislation which the electricity industry opposes.
State energy ministers have voiced their frustrations over the policy standstill.
Energy minister Angus Taylor released a statement noting “we are focused on affordable and reliable power, and I continue to discuss this with my state ministerial colleagues.”
Mr Taylor went on to stress the importance of the Retailer Reliability Obligation, which he said was “the only component of the NEG that will help reduce power prices,” noting it was agreed by COAG Ministers out-of-session in May so that the government could “implement this key election commitment from July 1.”
“The Retailer Reliability Obligation will require retailers to invest in enough generation to meet customer needs well ahead of time – ensuring reliable power for all Australians.
“The government does not consider it necessary to revive the only other component of the NEG because the National Electricity Market (NEM) is already on track to be 26 per cent below 2005 levels by 2030. Official Department of Environment and Energy emissions projections show we will meet our target as early as 2022,” the energy minister said.
At the last Council of Australian Governments meeting held in December, former NSW Energy Minister Don Harwin proposed a plan to reach net zero emissions by 2050 which was roundly rejected by Mr Taylor.
State ministers at that meeting spoke of the government-created Energy Security Board creating an emissions road map to progress the issue.
However, ESB chair Kerry Schott said today there was little momentum to reboot the emissions and energy challenge in the current political environment.
“In terms of the integration of emissions policy and energy policy, we probably need to be realistic. I’m not very optimistic about making progress on that front anytime soon,” Ms Schott said.
Great to have NSW Energy Minister â¦@Matt_KeanMPâ© share a strong vision for clean energy. NSW is prepared to lead! pic.twitter.com/StseQq2TuJ
— Kane Thornton (@kanethornton) July 30, 2019
The sector’s peak body group said the policy stand-off between state and federal governments was unhelpful for the industry and consumers.
“Frankly, we are making it up as we go,” Clean Energy Council chief executive Kane Thornton said. “Collaboration between our states and Commonwealth is near non-existent. They haven’t met together for eight months now. And they don’t currently have a meeting scheduled. Australian customers and voters expect better.”