New or expanded pumped hydro, solar, gas and coal projects will be considered for taxpayer-funded support under a federal plan to increase new power generation.
Subscribe now for unlimited access.
or signup to continue reading
The technology-neutral approach will focus on power generation that can drive prices down, increase competition, and be delivered quickly.
Energy Minister Angus Taylor has on Wednesday outlined the government's plan to underwrite new power generation, in the wake of a number of energy policies being dumped.
"The program will have a level-playing field to enable the best and lowest cost generation options to be supported," Mr Taylor said in Cooma.
"This includes consideration of 'greenfield' or 'brownfield' projects, as well as upgrades or life extensions of existing generators.
"We cannot continue to have a system where firmness is not considered, transmission costs are not considered and where affordability is not a priority."
Mr Taylor says direct approaches have been made to the government around specific projects including pumped hydro, coal, gas and solar thermal.
He recently held two meetings with 70 people from retailers, generators, banks, engineering companies and consultancies to shape the criteria used to decide which projects will get underwritten.
The government's plan to reduce electricity prices also includes the threat of possible divestiture of energy businesses, yet legal advice provided to the Australian Energy Council has questioned if the government's powers extend that far.
Mr Taylor says the government has also sought legal advice and he's "confident" of their position.
"At the end of the day what we've got there is an attempt by the big energy companies to keep control of a market, where they're a small group of companies who have a lot of control," he told the ABC.
Mr Taylor has also recommitted the government to the Snowy 2.0 pumped hydro project as it has "unrivalled capacity" to store and generate power as needed.
But there is no new emissions reductions policy after the demise of the National Energy Guarantee.
Mr Taylor says Australia is "well ahead of the plan" to reduce emissions, thanks to a 250 per cent increase in solar and wind power coming online in the next three years.
Instead, the minister is focusing on reliability, with a "retailer reliability obligation" to encourage investment generation that can be switched on when needed.
Labor spokesman Mark Butler said the latest government data on emissions showed they were at their highest levels in eight years.
Australian Associated Press
