Today’s agreement to continue negotiating the policy framework of the National Energy Guarantee (NEG) is a sensible step forward that recognises the broad support for the policy but also the critical need to address some final design issues, the clean energy industry said.
Clean Energy Council Chief Executive Kane Thornton said the clean energy industry believes the policy framework of the NEG could work if the emissions reduction target is substantially increased and a range of other design issues are addressed.
If the NEG is going to drive the new energy investment that is crucial to lowering power prices, the proposed target of 26 per cent emissions reduction by 2030 needs to be higher,” Mr Thornton said.
“The NEG is a complex reform that requires careful consideration and design. Today’s discussions must be followed by genuine negotiation on the outstanding critical issues.
“Many of the conditions proposed by jurisdictions such as Victoria, Queensland and the ACT are reasonable and are supported by the clean energy industry, including the call for more frequent reviews and the inclusion of a mechanism that prevents the emissions reduction target being cut in the future.
“We call on the Federal Government and all state and territories to keep cool heads and negotiate in good faith to find a compromise that will provide the long-term investment certainty needed to deliver new clean energy generation,” he said.
Mr Thornton said design issues that need to be addressed include:
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