A backbench push for a new taxpayer-funded coal fired power station has been derided as "ludicrous" by energy analysts who believe it would cost at least $3 billion, drive up energy prices and take eight years to build.

The plan, led by a group of conservative MPs including Tony Abbott, Eric Abetz and Kevin Andrews, emerged as Commonwealth and state energy ministers prepare for a new round of negotiations in late April over the Turnbull government's signature energy policy, the National Energy Guarantee.

The backbench group known as the Monash Forum wants the government to give more support to coal-fired power generation. Credit:Chris Ratcliffe

The chair of the Coalition's backbench energy and environment committee, Liberal MP and climate change sceptic Craig Kelly, said the group -known as the Monash Forum - wanted to address rising power prices, which he claimed were caused by the renewable energy target and closure of coal power plants.