Recently in the media, Australian Prime Minister Malcolm Turnbull unveiled his government’s new energy policy, hoped to replace the existing Clean Energy Target. This new energy plan hopes to not only reduce costs on households and businesses but to also uphold Australia’s responsibility under the Paris Climate Change Agreement and lower carbon emissions. There are 3 components of the new National Energy Guarantee, as unveiled by the Prime Minister:
On average, it is estimated that the typical household could save between $110 – $115 per year for a decade from 2020. This is mainly from the effect of dispatchable power will have on the intake of utilising more renewable technologies and upholding Australia’s responsibility to reduce total emissions by 2030.
Retailers will have to guarantee the reliable supply of electricity and will have to use dispatchable power, now thanks to the latest technology can include large-scale solar battery storage and hydroelectricity and gas. This dispatchable power has the ability to be turned on and off to meet the demands of electricity grid operators. As part of this reliable energy supply, wind and coal will be part of the combination. Electricity retailers will be entering into contracts for using dispatchable energy and low emission energy, with hopes that this will encourage newcomers into the market to lower electricity prices for households and businesses.
In November 2016, the Australian Government made a pledge to reduce carbon emissions by 26 – 28 per cent by 2030 this was part of the Paris Climate Change Accord. The New Energy Guarantee hopes to make the Australian Government more accountable for their pledge, this will encourage more large-scale uses of renewable energy to reduce carbon emissions. To address these emissions concerns, energy retailers will be set limitations of average carbon dioxide emissions produced to reduce Australia’s overall carbon emissions target.
Whilst electricity does create more than one-third of our total emissions, other sectors across the country will have to make a greater emphasis on reducing their carbon emissions.
We are excited to see the Federal Government encourage use of large-scale solar and battery storage systems and are keen to see how states and territories react to this proposal.