Friday 14 July 2017

State energy ministers threaten to lock Federal Government out of national plan for clean energy target

Updated yesterday at 6:10pm

State energy ministers have threatened to lock the Federal Government out of a national plan for a clean energy target.

Key points:

  • Clean energy target is the primary recommendation from the Finkel report
  • Queensland energy minister says time is running out to make a decision
  • Josh Frydenberg warns any state-based solution would be counter-productive
Ministers from Queensland and South Australia have been rallying counterparts in other states to go it alone if the Commonwealth refuses to commit to the target proposed by chief scientist Alan Finkel.
Queensland Energy Minister Mark Bailey said time was running out to make a decision.
"If the Federal Government isn't going to get on with it, which appears to be the case, then it might be up to the states to again drive energy policy," he said.
"The Victorian Energy Minister and I have had discussions about this and it might be worth getting the Australian Energy Market Commission to do some design work, requested by the states, given the Federal Government is frozen on energy policy."
The clean energy target was the primary recommendation from the Finkel report, released last month.
It recommends adopting a new clean energy target which would promote a greater use of gas and put a bigger focus on energy storage.
South Australia's Energy Minister Tom Koutsantonis pushed the Commonwealth to make a final decision at Friday's COAG energy council meeting.
"I mean, they've commissioned the report, the report's come back, the report tells us we can lower power prices, we can increase power security and they're fighting because they're worried about the mining council and the coal industry," he said.
But Federal Energy Minister Josh Frydenberg warned any state-based solution would be counter-productive.
"Well, that does not make sense because one of the things Dr Finkel pointed out was that we have to have a national approach," he said.
"We've only received the report a month ago from the chief scientist and it's appropriate that we have our internal considerations.
"There have been lots of issues raised with the modelling around Finkel, and so we're not prepared to commit either way."
The current federal position around a renewable energy target finishes in 2020.
Mr Frydenberg blamed the states for creating inconsistency across the National Electricity Market by "coming in over the top of the clean energy target".
"The states that are playing to the extreme Left within their own constituencies have gone out and have put in place unrealistically high renewable energy targets and we have all seen the price that's been paid by South Australians for the lack of preparedness by that Labor Government," he told News Radio.

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