How Does the Federal Government’s Energy Plan Stack Up?

01.12.17 By

Federal, State and Territory energy ministers are expected to discuss the National Energy Guarantee (NEG) at the upcoming COAG Energy Council meeting on Friday 24 November. The Federal Government put forward the NEG proposal after deciding not to adopt the Finkel Review’s recommendation of a Clean Energy Target.

The Energy Security Board has projected that the Federal Government’s NEG would result in 28-36% renewable energy by 2030, which falls woefully short of where we need to be. The Climate Council has assessed how 28% renewable energy in 2030 performs on renewable energy, climate and jobs.

So, how does 28% renewable energy stack up?

Less renewable energy than business as usual.

The Federal Government’s proposed National
Energy Guarantee is projected to deliver as little as 28% renewable energy by 2030 (Energy Security Board
2017
). This is less than
the level of renewable energy under business as usual as modelled by the Finkel
Review (35% renewables in 2030) and Ernst & Young (34% renewables in 2030)
(Finkel Review 2017; Climate Council and EY 2016).

To ensure reliable
and affordable power
, sufficient new clean
electricity supply
needs to be brought online in advance of coal closures.
Through its reliability mechanism (the Reliability Guarantee), the NEG locks in
continued reliance on ageing and
unreliable coal power stations
, places a cap on new low cost wind and solar
and does not provide any incentive for new power generation capacity to be
brought online after 2020.

Inadequate pollution reduction from the electicity sector.

At 28% renewable energy by 2030, the NEG will
not even achieve the electricity sector’s pro-rata share of Australia’s emissions reduction target.

The Finkel Review (2017) found 42% renewable
energy in 2030 was the level required to meet the electricity sector’s pro-rata
share of Australia’s 2030 emissions reduction target.

A minimum of 50% renewable energy by 2030 is the bare minimum required to cut pollution in line with action on
climate change, and to limit global temperature rise to below 2 degrees C
(ClimateWorks 2017).

Australia will miss out on thousands of jobs in the electricity sector.

1. When compared to business as usual, 28% renewable energy in 2030 would mean:

2. The NEG projection was also compared to 50% renewable energy by 2030, this is considered the minimum required for Australia to have a credible climate change policy. When compared to 50% renewable energy, 28% renewable energy in 2030 would mean:

3. The 28% renewable energy NEG projection would result in negligible large-scale wind and solar construction from 2020 onwards. As large-scale renewable energy projects are generally located in regional and rural areas, these areas would be impacted the most. The modelling projected no new coal capacity constructed during the 2020s, with some additional gas capacity added during the late 2020s.

For key facts & figures as well as references please click here.


READ MORE: New modelling shows under the NEG, energy jobs will be reduced by thousands.