Plan to ramp up coal power to avoid more blackouts

A federal plan is under way to ­encourage more capacity at the nation’s biggest coal-fired power stations.

Coalition MPs are pushing to put reliability and price ahead of the need to meet climate-change targets. Picture: Stuart McEvoy

A federal plan is under way to ­encourage more capacity at the nation’s biggest coal-fired power stations as the Turnbull government prepares for a report on ­future electricity shortages while fielding backbench complaints about the shift to renewable ­energy.

The government has prioritised ways to expand existing coal power stations as soon as possible if the report warns of dangerous shortfalls in the electricity grid stretching from South Australia to Queensland.

Backbenchers are pushing for a drastic shift in the energy debate to put reliability and price ahead of the need to meet climate-change targets, with some Liberals and Nationals determined to oppose any scheme that favours renew­ables over coal.

The government is considering whether to adopt a clean energy target as recommended by Chief Scientist Alan Finkel, but the backbench push could dump the idea or scale back the target out of concern it would hurt coal power generators.

Greens climate change spokesman Adam Bandt will today warn against a deal between Labor and the Coalition on the clean energy target, reviving the political ­dynamics that scuttled an emissions trading scheme in 2009.

Malcolm Turnbull last week aired the option of using a $5 billion Northern Australia infrastructure fund to help fund a private coal-fired power station, but the government believes it would be faster and cheaper to ramp up existing generators.

The government is about to ­receive a report from the Australian Energy Market Operator on the outlook for baseload power, in a vital finding before a cabinet discussion on whether to embrace a clean energy target.

Labor has sent conflicting signals on whether it believes coal-fired power stations should keep operating or be closed down, with Energy Minister Josh Frydenberg accusing his opponents of spouting “gobbledygook” on the issue.

Mr Bandt will warn against any policy that retains coal-fired power operating.

“If Labor and Liberal agree on a ‘clean energy target’ that includes coal but don’t include any mechanism to start closing coal-fired generators, it may well create a short-term ‘valley of death’ for ­renewables,” he says in a draft of his remarks.

“If a Labor/Liberal CET deal is struck, there will be at least three years during which a paltry target will be in place, new coal will be incentivised and new renewables placed at a further disadvantage.”

Liberal National Party backbencher David Littleproud called for the expansion of the coal-fired power stations in his electorate of Maranoa, including the Kogan Creek generator.

“I’m hearing of businesses that are not going to open in summer in some of the outback towns because of the cost of electricity,” he told The Australian.

Mr Littleproud said the government should be “fluid” on a clean energy target to meet global ­climate-change commitments in a “careful and measured” way.

Fellow Queensland MP ­George Christensen said the federal government had to avoid a clean ­energy target that pushed up ­prices and hurt jobs.

“As a government — on a whole range of fronts — we’re running out of arrows to fire, and ­energy is a golden arrow, if you like,” he said.

“If we throw that away, we’re throwing away our electoral chances.”

Mr Christensen said he was “extremely sceptical” about a clean energy target and could not support one if it pushed up prices.