Policy

After passing through the Federal Coalition party room, Australian states and territory governments have agreed to the release an ‘exposure draft’ of the legislation that will enable the National Energy Guarantee (NEG). Whether it will pass House of Representatives is another matter.

The National Energy Guarantee (NEG) has stumbled, battered and bruised, into today’s coalition party room meeting. It’s hard to imagine it surviving many more rounds in the energy policy boxing ring. While it’s received support from a wide range of businesses and industry bodies engaged with the energy sector, including the Clean Energy Council, a ‘better than nothing’ NEG is looking like a right mess.

The Australian Competition and Consumer Commission has briefed the National Party MPs on its recommendation to prematurely wind down taxpayer-funded incentives for sub-100kW solar systems by 2021.

While the global PV market is set to record its weakest Q3 demand since 2015, the Australian market will finish the year strong across all segments. GTM Research made the finding in its latest Global Demand Monitor, noting that oversupply and falling prices will result in a decline of modules, as a percentage of total utility scale developer cost, from 34% to 28% in Australia this year.

Mixed messages have emerged from today’s COAG Energy Ministers’ meeting today, after what was meant to have been a decisive meeting for the National Energy Guarantee (NEG) policy measure. Fundamental opposition from some Labor states remain, however an agreement to release the draft legislation was reached – after it passes the test of the coalition party room.

Amid the intense discussion surrounding the National Energy Guarantee’s promise to cut power bills by $550 a year, Australia’s biggest power producer has reported its full year profit almost trebled, and its underlying profit rose by nearly a third.

Federal Labor leader Bill Shorten has chosen a visit to UNSW’s solar research facility to push for “fair dinkum” negotiations between the Federal Government and the states over the NEG tomorrow. Labor may look to secure a higher NEG emissions reduction target in the Senate, after passing the lower house.

As the debate heats up in the run up to Friday’s COAG meeting, the Victorian government has issued a last-minute call to redraft the proposed National Energy Guarantee (NEG), and the Australian Capital Territory has redefined its NEG approval conditions in regard to the emissions target. Meanwhile, Australia’s peak renewable energy bodies have taken opposing positions.

In the lead up to a COAG energy ministers’s critical meeting this week, a poll conducted by ReachTEL for Greenpeace Australia Pacific shows that over 70% of respondents want an ambitious renewable energy target to drive down electricity prices.

The Australian Labor Party is rallying around a position demanding that the coalition party room signs off on the National Energy Guarantee (NEG) before Labor-lead state governments give their go-ahead. Federal energy and environment minister Josh Frydenburg will take the policy to state energy ministers on Friday.