It’s All Over: Australian Government Abolishes Green Energy Subsidies

The Federal Government has dumped subsidies for renewable power and established a reliable electricity target that favours gas, hydro and coal in a long-awaited energy policy unveiled by Prime Minister Malcolm Turnbull today.

The reliability target will be set to deliver the right level of dispatchable power needed in each State.

The level will be set by the Australian Energy Market Commission and Australian Energy Market Operator.

An emissions guarantee will also be set to meet Australia’s Paris reduction target.

This level will be set by the Federal Government and enforced by the Australian Energy Regulator.

Energy Security Board chair Kerry Schott, who recommended the process, said it would lower prices.

The Government won’t be adopting the proposal of Chief Scientist Alan Finkel for a clean energy target.

The proposed energy package draws clear battlelines with the Labor Party, which yesterday reaffirmed its commitment to the CET.

Shadow energy spokesman Mark Butler said that any Government shift away from the CET would demonstrate that Mr Turnbull was hostage to former leader Tony Abbott’s “radical right wing agenda”.

“The best outcome for power prices will be delivered by a Clean Energy Target,” Mr Butler said.

In question time yesterday, Mr Turnbull said the Government’s new energy plan would be “in stark contrast to the ideology and the idiocy” of the Labor Party’s policy legacy.

“We will deliver a careful energy plan based on engineering and economics, designed to deliver the triple bottom line of affordability, reliability and meeting our international commitments,” he said.