South Australia has joined with Victoria, Queensland and the ACT in tasking the Australian Energy Market Commission to work with AEMO to immediately develop and design the options to implement a Clean Energy Target (CET).
Energy Minister Tom Koutsantonis moved an amendment at the Brisbane COAG to begin the work on how a CET would work and how the States could implement it.
The Commonwealth Government’s own Finkel Review recommended the implementation of a CET, finding it would drive down power prices, increase reliability and lower carbon emissions. However, the Federal Government failed to endorse the Chief Scientist Alan Finkel’s recommendation at the last meeting of COAG energy ministers.
Treasurer Tom Koutsantonis said industry, business, climate groups and State Governments are all calling for a market mechanism like the CET to drive down power prices.
“It is incredibly frustrating that despite the overwhelming community support for a market mechanism, the Federal Government is still resisting committing to all 50 Finkel recommendations.”
“Australians can’t wait any longer, which is why four Australian states and territories have tasked the Australian Energy Market Commission to design options for a CET that could be implemented by the states.”
In October 2016 COAG commissioned Chief Scientist Alan Finkel to conduct an independent review into the future security of the National Electricity Market.
Since that time, a broad range of experts, industry groups and businesses have called for a market mechanism that drives investment in new electricity generation. These groups include:
- CSIRO
- BHP
- The Australian Industry Group
- Business Council of Australia
- AGL
- EnergyAustralia
- The National Farmers’ Federation
- The Australian Energy Market Commission
- The Australian Energy Regulator
- The Grattan Institute
- Clean Energy Council
- Malcolm Turnbull (when he was Leader of the Opposition)
- Frontier Economics
Last month, the Chief Scientist delivered the Finkel Review to COAG, making 50 recommendations, including the introduction of a Clean Energy Target. The CET would require retailers to purchase a certain amount of power from clean generators, such as renewables and gas, thereby incentivising new investment in the market.
At the last COAG meeting the Federal Government supported 49 out of the 50 Finkel recommendations, but did not support the most vital recommendation – the implementation of a CET.
