Nationals signal new front in climate change war

David Littleproud has accused the ­energy market operator of focusing too much on renewables in its blueprint to transform the electricity sector.

National Party leader David Littleproud. Picture: Richard Walker

Deputy Opposition Leader David Littleproud has accused the ­energy market operator of focusing too much on renewables in its blueprint to transform the electricity sector, in a sign the climate change wars are set to continue into the 47th parliament.

The Nationals leader said “someone has to pay” for the $10bn in transmission investment the Australian Energy Market Operator says is needed to ­encourage a nine-fold increase in large-scale wind and solar ­generation.

“There is a real challenge here about the speed in which they are wanting to move to renewables,” Mr Littleproud told Sky News.

“Seventy per cent of the east coast market is coal and gas. To transition that to 82 per cent renewables by 2030 is a huge leap with great risk. You are putting all your eggs in one basket with untried technology.”

Mr Littleproud said there should instead be a focus on lowering the emissions of coal and gas energy production through investment in carbon-capture and storage technology. “We all want to reduce emissions but if we could reduce emissions with existing energy sources, like coal and gas with carbon-capture and storage, why wouldn’t we do it?

“Why put all your eggs in one basket? This is the risk that they are taking us down on an ideological basis,” he said.

Energy Minister Chris Bowen said the government would be looking at investing in transmission projects recommended by AEMO, including HumeLink, VNI West and the Marinus Link.

“The national energy market is undergoing unprecedented change, and urgently needs investment in transmission and planning to ensure reliability and affordability through this change,” he said.

“We’re also going to need to get a lot more electricity in the system as everything that can reasonably be ­electrified is, from EVs and transport to ­manufacturing.

“This creates a doubling of electricity demand by 2050.

“Business, industry and investors are all saying the same thing: we need to upgrade the transmission grid and inject more cheap and reliable firmed renewables to keep the lights on and manage this fundamental change across the economy.”

With AGL Energy on Thursday slugging NSW customers with a $300 annual increase in electricity bills, Mr Bowen is refusing to stand by Labor’s pre-election claim its policies would reduce power bills by $275 by 2025. “Since the modelling was done, we have seen Snowy 2.0 running late, we’re seeing the default market offer going up,” Mr Bowen said at the National Press Club in Canberra on Wednesday.

Opposition energy spokesman Ted O’Brien said the government would be breaking a key election commitment if electricity prices did not drop by $275.

“It will absolutely be a broken promise if Labor fails to deliver cuts to power prices, including the $275 for households,” he said.

“Labor looked Australian ­people in the eye only last month (May) and guaranteed them that power bills would be cut.”

Mr O’Brien said the Coalition would be cautious about supporting mandatory vehicle emissions standards, which Mr Bowen on Wednesday flagged would be on the table as part of the government’s national electric vehicle strategy.

Labor Environment Action Network co-convener Felicity Wade said addressing vehicle emission standards “would ideally be part of the progressive Labor policy agenda this term”.

“We have some of the worst vehicle emission standards in the world, Ms Wade said.

“The last government recognised this – (Malcolm) Turnbull and (Greg) Hunt tried to address it but were rolled.

“That’s why you elect Labor governments.”