Australia eyes replacing clean energy target with National Energy Guarantee

Renewables will make up less than 40% of the power mix under the new policy.

The Australian government has decided not to adopt the Clean Energy Target (CET) and has instead unveiled a new energy policy labelled as National Energy Guarantee (NEG). According to Enerdata, under the new policy, renewable energies will make up less than 40% of the country's power mix by 2030. Unlike the CET, the NEG is not primarily oriented to curb greenhouse gas emissions.

The CET would have seen power companies forced to provide a percentage of their power from renewable energies and the increased costs of sourcing energy from these types of providers would have been passed on to consumers. Instead, the NEG plan schedules the end of subsidies and incentives for renewable energy from 2020 onwards.

Here's more from Enerdata:

As per the NEG, Australian retailers will be required to use a certain percentage of their electricity from so-called dispatchable sources such as coal, gas, batteries and pumped hydro. Domestic retailers will be expected to ensure by themselves that the power that they are purchasing is reliable and efficient enough to help Australia meet its international obligations. An emissions guarantee will be implemented in order to meet Australia's Paris reduction target, requiring the new legislation to be passed by the Parliament and enforced by the Australian Energy Regulator. The guarantee level will be set by the Australian Energy Market Commission and the Australian Energy Market Operator; penalties for retailers missing the guarantee have yet to be determined.

The idea is to avoid blackouts and keep the power system stable at a lower price. The government hopes that the average household could save between A$110 (US$86) and A$115 (US$90) per year for a decade from 2020. The plan includes a so-called reliability guarantee that will be set to deliver the right level of dispatchable power when required in each state.

Original article was posted by Enerdata.

Also Read

Carbon market for Asia-Pacific region pushed

India’s MNRE clarifies coverage of ALMM order

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit