After meeting with state and territory ministers on Friday, Energy Minister Chris Bowen says a new emissions reduction objective for the country’s national energy measure will make a “material difference” to how the market operates.
It’s the first time in 15 years the national energy objectives have been updated, which will now prompt energy bodies such as AEMO to consider reducing emissions.
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“We’ve fixed it, and it will make a material difference to how (the energy regulator, operator and commission) do their work, because they can only comply with the objective,” Minister Bowen told the ABC’s Insiders.
“It puts it in the heart of their decision making, it should have happened a long, long time ago.”
The move was applauded by Clean Energy Council CEO Kane Thornton.
“Australia’s energy market, its institutions and governance are now aligned to deliver Australia’s climate change targets,” he said.
“Today, we’re seeing a clean, green light for low-cost renewable energy from hydro, solar, wind and storage to become the dominant source of Australia’s energy needs through an orderly transition away from costly, dirty and failing fossil fuel sources.
“These decisions provide clean energy investors further confidence and certainty missing through years of inaction and neglect.
“The message could not be more explicit—Australia’s governments are united in accelerating reform to deliver a clean energy future.
“The clean energy industry has been calling for this reform for more than 15 years. This decision, combined with the clear unity and collaboration of energy ministers across the country, heralds a new and exciting chapter of leadership for Australia.”
Ministers have also recognised the concerns raised by the clean energy industry that the proposed capacity mechanism presents some material risks to the business case and market confidence for new investment.
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“The clean energy industry looks forward to working closely with officials to ensure these options ultimately deliver the price signals necessary for new investment and to manage the phase-out of fossil fuel generation,” Thornton said.
“We also welcome and look forward to working on the First Nations Clean Energy Strategy, the integrated energy infrastructure and regional planning scenarios and important consideration of the workforce, supply chain and community needs associated with the accelerated transition of the energy system.”
