Extract from The Guardian
Groups warn policy uncertainty could cause essential energy
investments to be deferred or distorted at a huge cost to consumers and
the economy
Major business organisations and energy users have urged federal and
state governments to work cooperatively to map out a “strategic response
to Australia’s energy transition and challenges” ahead of a meeting of
energy ministers scheduled for Friday – warning that investment is at
risk.
The Australian Energy Council has joined with the Australian Industry Group, the Business Council of Australia, the Energy Users Association of Australia, Energy Consumers Australia, the Energy Efficiency Council, the Energy Networks Association and the Clean Energy Council to call for leadership between the jurisdictions and bipartisanship on “the tightly connected issues of energy and climate change”.
In a joint statement, the groups warned that, in the absence of bipartisanship, “uncertainty will cause essential energy investments to be deferred or distorted, to the ultimate cost of us all.”
The plea to end the zero-sum politics that has beset the climate and energy policy debates of the past decade comes as energy ministers are scheduled to attend a one-off meeting in Canberra, called at the prime minister’s behest, after the South Australian blackouts last week.
Turnbull last week linked the SA blackout explicitly to the state’s use of renewable energy, calling it a “wake-up call” for state leaders who were trying to hit “completely unrealistic” renewable targets.
On Wednesday, Turnbull said the cause of the blackout was “storms disrupting transmission lines” but he continued to criticise the South Australian government for having the highest wholesale energy costs in the country, arguing that wasn’t good for jobs, or investment.
The states point to the commonwealth’s lack of leadership on renewable energy in recent years and South Australia has flagged that it will raise an emissions intensity trading system for the electricity market during Friday’s discussions – a proposal Canberra has batted off until a review of the Direct Action policy in 2017.
Before Friday’s meeting, South Australia has convened its own summit on renewable energy.
Thursday’s event in Adelaide will include participation from Australia’s chief scientist, Alan Finkel, the economist and former Liberal party leader John Hewson, the economist and climate policy adviser Ross Garnaut, the chief executive of the Climate Council, Amanda McKenzie, the director of energy at the Grattan Institute, Tony Wood, and Tesla Energy’s regional manager, Lara Olsen.
The SA environment minister Ian Hunter said it was important “we have a fact-based discussion around how we make our energy system more secure, cheaper and cleaner”.
“This summit will bring the science behind renewables to the table – and dispel misconceptions – ahead of important, nation-shaping discussions to be held this Friday,” Hunter said.
In their joint statement before the energy ministers’ meeting, business and energy groups said Australia was undergoing a major transition towards a lower carbon emissions economy and new technologies for generation, supply, storage and use of energy.
“The storm and subsequent blackout in South Australia underline the vital importance of energy security and the vulnerability of our increasingly complex electricity system to natural disasters,” the statement says.
“Before the storm and blackout, South Australia also experienced significant energy price rises and volatility shaped by: interconnector limitations; gas supply issues; the exit of coal-fired generation; and an increase in renewable energy generation.”
The groups say while recent events and medium-term challenges remain distinct, “a successful response in each case requires Australia’s leaders to work together”.
“Both sides of politics at the federal and state levels share responsibility for the current state of the national energy system and for developing effective solutions to it. Those solutions need to be strategic, efficient, nationally coordinated and consistent.”
The groups acknowledge the transition in the energy market will come at a cost but contend costs can be minimised through “careful long-term planning and cooperation between all stakeholders”.
“Effective and enduring policy will ensure Australia can leverage significant private sector investment to deliver the necessary infrastructure,” the statement says.
The Australian Energy Council has joined with the Australian Industry Group, the Business Council of Australia, the Energy Users Association of Australia, Energy Consumers Australia, the Energy Efficiency Council, the Energy Networks Association and the Clean Energy Council to call for leadership between the jurisdictions and bipartisanship on “the tightly connected issues of energy and climate change”.
In a joint statement, the groups warned that, in the absence of bipartisanship, “uncertainty will cause essential energy investments to be deferred or distorted, to the ultimate cost of us all.”
The plea to end the zero-sum politics that has beset the climate and energy policy debates of the past decade comes as energy ministers are scheduled to attend a one-off meeting in Canberra, called at the prime minister’s behest, after the South Australian blackouts last week.
Turnbull last week linked the SA blackout explicitly to the state’s use of renewable energy, calling it a “wake-up call” for state leaders who were trying to hit “completely unrealistic” renewable targets.
On Wednesday, Turnbull said the cause of the blackout was “storms disrupting transmission lines” but he continued to criticise the South Australian government for having the highest wholesale energy costs in the country, arguing that wasn’t good for jobs, or investment.
The states point to the commonwealth’s lack of leadership on renewable energy in recent years and South Australia has flagged that it will raise an emissions intensity trading system for the electricity market during Friday’s discussions – a proposal Canberra has batted off until a review of the Direct Action policy in 2017.
Before Friday’s meeting, South Australia has convened its own summit on renewable energy.
Thursday’s event in Adelaide will include participation from Australia’s chief scientist, Alan Finkel, the economist and former Liberal party leader John Hewson, the economist and climate policy adviser Ross Garnaut, the chief executive of the Climate Council, Amanda McKenzie, the director of energy at the Grattan Institute, Tony Wood, and Tesla Energy’s regional manager, Lara Olsen.
The SA environment minister Ian Hunter said it was important “we have a fact-based discussion around how we make our energy system more secure, cheaper and cleaner”.
“This summit will bring the science behind renewables to the table – and dispel misconceptions – ahead of important, nation-shaping discussions to be held this Friday,” Hunter said.
In their joint statement before the energy ministers’ meeting, business and energy groups said Australia was undergoing a major transition towards a lower carbon emissions economy and new technologies for generation, supply, storage and use of energy.
“The storm and subsequent blackout in South Australia underline the vital importance of energy security and the vulnerability of our increasingly complex electricity system to natural disasters,” the statement says.
“Before the storm and blackout, South Australia also experienced significant energy price rises and volatility shaped by: interconnector limitations; gas supply issues; the exit of coal-fired generation; and an increase in renewable energy generation.”
The groups say while recent events and medium-term challenges remain distinct, “a successful response in each case requires Australia’s leaders to work together”.
“Both sides of politics at the federal and state levels share responsibility for the current state of the national energy system and for developing effective solutions to it. Those solutions need to be strategic, efficient, nationally coordinated and consistent.”
The groups acknowledge the transition in the energy market will come at a cost but contend costs can be minimised through “careful long-term planning and cooperation between all stakeholders”.
“Effective and enduring policy will ensure Australia can leverage significant private sector investment to deliver the necessary infrastructure,” the statement says.
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