Canberra in a world of its own

ACT Greens leader and Energy Minister Shane Rattenbury’s willingness to block the Turnbull government’s National Energy Guarantee because it does not put sufficient emphasis on renewables is smug and sanctimonious, with scant regard for the national interest.

As federal Energy Minister Josh Frydenberg says, the ACT accounts for 1.5 per cent of the national electricity market, “and I cannot see a situation where you got unanimous agreement from the other states in the national electricity market, and the ACT blocking a historic national reform’’. The NEG could also be challenged by a group of prominent Coalition backbenchers, the Monash Forum, promoting government support for building coal-fired power stations.

The ACT is not typical of the rest of the nation. Its 400,000 people enjoy Australia’s highest per capita income. The job market is dominated by the public sector and getting to work takes most people 20 minutes. The territory occupies less than 1 per cent of Australia’s land mass and has little, if any, heavy industry. It faces few of the pressures of other areas with higher unemployment, where households and businesses are struggling with soaring electricity bills. Canberra is on track to meet a 100 per cent renewable energy ­target within two years. But even so, when the wind doesn’t blow and the sun doesn’t shine it ­relies on the coal-dominated ­national grid.

COAG energy ministers will meet later this month to discuss the NEG, which needs to be ratified by all jurisdictions. NSW, Tasmania and South Australia appear likely to support it and talks are under way with Labor states ­Victoria and Queensland. The guarantee aims to provide affordable energy while reducing emissions to meet Australia’s obligations under the Paris Agreement.

That is not good enough for Mr Rattenbury. He wants the energy sector to deliver a steeper emissions cut than Australia’s overall 26 per cent Paris commitment and says “we can’t sign up’’ to a “bad agreement’’. With or without the ACT, Australians need affordable, reliable power.