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Australian Energy Ministers set to clash over ‘CoalKeeper’ within hours | ticker VIEWS
State and Federal Energy Ministers in Australia are gearing up to meet on Friday 24 September to discuss the energy market
As the rest of the world moves away from coal, Australian energy ministers are preparing for a potentially fractious meeting this week, to discuss keeping coal-fired plants open. This is to ensure the country’s power system remains reliable during a transition to lower greenhouse gas emissions.
The proposal, known is known as the capacity market, will provide a strategic reserve for significant events in the National Electricity Market (NEM). The NEM accounts for more than 80pc of Australia’s total electricity demand, and coal-fired plants are its largest fuel source.
But the proposal has proved to be contentious, as some state ministers have announced that they will not support it.
The Federal Government has announced its #CoalKeeper program to support the coal industry. However, experts are urging the Government to consider the opportunities in other industries to transition away from coal.
Victorian Energy Minister Lily D’Ambrosio is urging the Government to incentivise sectors like renewable energy. D’ambrosio will meet with Angus Taylor on Friday to go head to head about the end of coal in Australia.
“Victoria won’t support Coal-Keeper payments”
“Vicotria remains committed to clean energy investment and jobs.”
Lily D’Ambrosio, Victorian Energy Minister
Who will prevail?
The Victorian Government has been criticised for opposing “Coal-Keeper” subsidies to extend the life of coal plants. A new “capacity mechanism” aims to offer financial incentives to encourage the construction of power sources and prevent the premature closure of coal generators.
Victoria’s stance on coal is setting up a clash at the national cabinet meeting of energy ministers. It will be D’ambrosio versus Taylor. Who will prevail?
This all comes after Victorian government provided secret financial backing in March to ensure EnergyAustralia’s Yallourn plant stays in the state’s power system until 2028.
The Victorian Government refuses to release further details on this, but D’ambrosio is standing strong on her views.
NSW Energy Minister Matt Kean, an outspoken critic of the Morrison government’s climate change ambition, has given his preliminary backing to the plan but did caution he was worried about the costs.
The capacity mechanism has been endorsed by the Australian Workers’ Union and the CFMEU.
Renewable energy companies and investors including the powerful Clean Energy Investor Group say the move will kill investment in new supplies and drive up costs for consumers by subsidising old coal plants.
“There’s been no leadership from a national level”
Lily D’Ambrosio, Victorian Energy Minister
“You can’t transition tomorrow, what you can do is have a proper plan.”
“Sending a clear message to the market this energy will no longer be there, invest in new technology, invest in replacement energy.”
Lily D’Ambrosio, Victorian Energy Minister
“This coal keeper program, this is a carbon tax- but it’s going to give money to the coal-fired power stations.”
Scott Hamilton, Ticker Climate co-host
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