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Liberals and Nationals stare down renewable energy transition naysayers Liberals and Nationals stare down renewable energy transition naysayers
(6 months later)
Liberal backbenchers and some Nationals are staring down a deliberate wrecking campaign on the national energy guarantee by Tony Abbott and other conservatives, declaring the policy a historic opportunity to end a destructive period in Australian politics that has driven up power prices.Liberal backbenchers and some Nationals are staring down a deliberate wrecking campaign on the national energy guarantee by Tony Abbott and other conservatives, declaring the policy a historic opportunity to end a destructive period in Australian politics that has driven up power prices.
Liberal Trent Zimmerman, who rose to defend the policy during Tuesday’s Coalition party room meeting when Abbott and some others criticised it, told Guardian Australia on Thursday the national energy guarantee was “the best opportunity we have to find energy security and stability”.Liberal Trent Zimmerman, who rose to defend the policy during Tuesday’s Coalition party room meeting when Abbott and some others criticised it, told Guardian Australia on Thursday the national energy guarantee was “the best opportunity we have to find energy security and stability”.
Zimmerman said it was “just crazy” to think the commonwealth could settle energy policy without seeking the agreement of state and territory governments, given the states and territories “control the levers”.Zimmerman said it was “just crazy” to think the commonwealth could settle energy policy without seeking the agreement of state and territory governments, given the states and territories “control the levers”.
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“We have three goals in energy policy: providing grid security, lowering prices and meeting our Paris targets, and all three of these things are equally important,” the MP said.“We have three goals in energy policy: providing grid security, lowering prices and meeting our Paris targets, and all three of these things are equally important,” the MP said.
Zimmerman warned internal critics of the policy that it would be a serious “mistake” for the Coalition to ignore the rising concern of Australian voters about the impact of climate change.Zimmerman warned internal critics of the policy that it would be a serious “mistake” for the Coalition to ignore the rising concern of Australian voters about the impact of climate change.
The Neg is now entering its decisive period, with the energy minister, Josh Frydenberg, due to meet his state and territory counterparts in early August for a meeting that will make or break the policy. Any individual jurisdiction can veto the Neg.The Neg is now entering its decisive period, with the energy minister, Josh Frydenberg, due to meet his state and territory counterparts in early August for a meeting that will make or break the policy. Any individual jurisdiction can veto the Neg.
This week the ACT warned it will be “very difficult” to sign on in early August if Frydenberg fails to give any ground in the remaining time before the definitive meeting of the Coag energy council.This week the ACT warned it will be “very difficult” to sign on in early August if Frydenberg fails to give any ground in the remaining time before the definitive meeting of the Coag energy council.
Frydenberg is also under pressure internally. On Wednesday evening, Tony Abbott joined fellow conservative Liberal Craig Kelly in signalling he was prepared to cross the floor to vote against the policy if he didn’t get the outcome he wanted.Frydenberg is also under pressure internally. On Wednesday evening, Tony Abbott joined fellow conservative Liberal Craig Kelly in signalling he was prepared to cross the floor to vote against the policy if he didn’t get the outcome he wanted.
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A number of Nationals are concerned about the policy on the basis it won’t do enough to lower power prices, and are hostile to a separate measure still to be resolved by the government that would lower pollution from vehicles.A number of Nationals are concerned about the policy on the basis it won’t do enough to lower power prices, and are hostile to a separate measure still to be resolved by the government that would lower pollution from vehicles.
But Andrew Broad, the Victorian National and the chairman of the House of Representatives environment and energy committee, said colleagues needed to understand that settling the policy mechanism for Australia’s electricity sector would ultimately lower power prices.But Andrew Broad, the Victorian National and the chairman of the House of Representatives environment and energy committee, said colleagues needed to understand that settling the policy mechanism for Australia’s electricity sector would ultimately lower power prices.
“The thing we haven’t had for 10 years in this place is certainty. Surely we are mature enough to realise that arguing about this for 10 years hasn’t delivered anyone cheaper power prices,” Broad said Thursday.“The thing we haven’t had for 10 years in this place is certainty. Surely we are mature enough to realise that arguing about this for 10 years hasn’t delivered anyone cheaper power prices,” Broad said Thursday.
“If we don’t get a settlement, then it will be stop-gap measures and an ad hoc approach won’t lower emissions or deliver lower power prices.”“If we don’t get a settlement, then it will be stop-gap measures and an ad hoc approach won’t lower emissions or deliver lower power prices.”
Broad suggested the government should consider a policy to supplement the Neg of either funding the refurbishment of power stations directly or through the provision of low interest loans to prolong the life of coal plants over the coming transition period.Broad suggested the government should consider a policy to supplement the Neg of either funding the refurbishment of power stations directly or through the provision of low interest loans to prolong the life of coal plants over the coming transition period.
Making it clear he was not talking about the “clapped out” Liddell coal-fired power plant owned by AGL, Broad said refurbishing coal plants with 10-to-15 years’ worth of operating life would ensure grid stability while lowering emissions during the transition to renewable energy.Making it clear he was not talking about the “clapped out” Liddell coal-fired power plant owned by AGL, Broad said refurbishing coal plants with 10-to-15 years’ worth of operating life would ensure grid stability while lowering emissions during the transition to renewable energy.
The Nationals leader, Michael McCormack, also endorsed the policy despite the concern within his own ranks. “As per previous statements, we have a positive plan on the table with the national energy guarantee which is supported the Liberal and Nationals government.”The Nationals leader, Michael McCormack, also endorsed the policy despite the concern within his own ranks. “As per previous statements, we have a positive plan on the table with the national energy guarantee which is supported the Liberal and Nationals government.”
Liberals Tim Wilson, Julia Banks and Trevor Evans also backed Frydenberg and the government’s policy. “The Neg is a policy framework that will secure more investment and rightly put responsibility back onto the states to secure supply and lower prices,” Wilson said.Liberals Tim Wilson, Julia Banks and Trevor Evans also backed Frydenberg and the government’s policy. “The Neg is a policy framework that will secure more investment and rightly put responsibility back onto the states to secure supply and lower prices,” Wilson said.
“Policy incoherence between the state and federal government has dramatically undermined energy investment, and the Neg fixes that incoherence by bringing the states and the federal government into alignment for the first time.”“Policy incoherence between the state and federal government has dramatically undermined energy investment, and the Neg fixes that incoherence by bringing the states and the federal government into alignment for the first time.”
Banks pointed to recent reductions in wholesale energy prices. “This is the message that needs to get through, that we’ve turned the corner on power prices.”Banks pointed to recent reductions in wholesale energy prices. “This is the message that needs to get through, that we’ve turned the corner on power prices.”
She said the government would be mad to squander the opportunity to settle the energy wars when the Neg had the support of big energy users like Bluescope and organisations like the Business Council of Australia and the National Farmers Federation.She said the government would be mad to squander the opportunity to settle the energy wars when the Neg had the support of big energy users like Bluescope and organisations like the Business Council of Australia and the National Farmers Federation.
Queensland Liberal Trevor Evans said: “The Neg has broad and deep support in the Coalition party room, and we know this because the policy has already passed the party room”.Queensland Liberal Trevor Evans said: “The Neg has broad and deep support in the Coalition party room, and we know this because the policy has already passed the party room”.
Evans warned the government dissenters that it would be “premature” to walk away from the policy before the negotiations were concluded with the states and territories. In another message for conservative critics, Evans said it would be “inappropriate to conflate the Neg with other issues in energy policy”.Evans warned the government dissenters that it would be “premature” to walk away from the policy before the negotiations were concluded with the states and territories. In another message for conservative critics, Evans said it would be “inappropriate to conflate the Neg with other issues in energy policy”.
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He said it was fine to debate the relative shares of coal and renewables in the energy mix, but the Neg was a “technology neutral mechanism” and settling the mechanism was the first thing required before other questions were debated.He said it was fine to debate the relative shares of coal and renewables in the energy mix, but the Neg was a “technology neutral mechanism” and settling the mechanism was the first thing required before other questions were debated.
Malcolm Turnbull on Thursday said the Neg did not require another comprehensive party room discussion before Frydenberg meets his state and territory colleagues in August – which is what Abbott has been pushing for.Malcolm Turnbull on Thursday said the Neg did not require another comprehensive party room discussion before Frydenberg meets his state and territory colleagues in August – which is what Abbott has been pushing for.
Frydenberg has insisted he already has party room sign off for the policy and it need not return to the party room for a substantive debate until after the Coag meeting. The energy minister says assuming the states sign off on the proposal, legislation will be required, and that will go to the party room for discussion later in the year.Frydenberg has insisted he already has party room sign off for the policy and it need not return to the party room for a substantive debate until after the Coag meeting. The energy minister says assuming the states sign off on the proposal, legislation will be required, and that will go to the party room for discussion later in the year.
The prime minister echoed that line on Thursday, noting that “any legislation that is required relating to the national energy guarantee will of course come to the party room in the usual way”.The prime minister echoed that line on Thursday, noting that “any legislation that is required relating to the national energy guarantee will of course come to the party room in the usual way”.
EnergyEnergy
Australian politicsAustralian politics
Coag (Council of Australian governments)Coag (Council of Australian governments)
Australian Capital TerritoryAustralian Capital Territory
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