A plan released today aimed at resolving the flags of Australia’s energy crisis gives states the right to decide whether gas and coal are included in a national scheme to reward generators for ensuring supply.
The Energy Security Board’s project sets out options for each jurisdiction to decide on subsidies to generators that can guarantee the capacity of the national electricity market.
Victoria is likely to insist on renewable energy, but it is believed New South Wales will support the gas in hopes of developing the Narrabri coal-fired gas project in the north of the state.
Coal could play a short-term role in securing electricity according to a plan by the national maximum energy regulator. (James Laws)
But the plan sets aside some key details, such as how much consumers should pay through their electricity bills and how much payments would be worth to generators.
The plan says the existing power generation in the plan, including coal and gas, can be retained to ensure short-term supply.
Meanwhile, there are new warnings that electricity could rise by 50 percent over the next two years and gas prices could double.
The states affected by the energy crisis in Australia. (new)
Because while the threat of blackouts is shrinking, industry analysts say international competition for coal and gas will keep generation costs high and hurt consumers.
“We’re currently in the pan and if we’re lucky we’ll be out in the slow cooker for the next two months,” warned Tennant Reed of the Australian Industry Group.
“Over the next two years, households are likely to pay 50% more for their electricity and potentially double that for their gas.”
The wholesale price of electricity accounts for about one-third of the retail bill.
States like Victoria are interested in developing renewable energy sources (Dorothy Woodgate)
The federal government blames its predecessor for not advancing more rapidly on renewable energy and still claims it can cut electricity prices for average households by $ 275 in this government term.