Related article: Labor delivers biggest clean energy Budget in history

Senator McAllister drove the National Energy Performance Strategy and the Consumer Energy Resources Taskforce. These provide a foundation for the new assistant minister to enable solar and electrification for more households, including renters, apartments and low income demographics.

Josh Wilson has been federal member for Fremantle since 2016.

“It’s an honour to have been asked by the Prime Minister to take on the responsibility of serving as the Assistant Minister for Climate Change and Energy, working with Minister Chris Bowen,” he said in a statement.

“There is no area of greater challenge and greater opportunity for Australia, and I relish the chance to work with communities around the country, with innovators and entrepreneurs, with businesses and clean energy advocates and civil society to continue the Albanese government’s sharp focus on the path to net zero, with cheaper energy, cleaner air, and a safe climate.

“Our approach will always involve taking action now and supporting households, including with the cost of living, while laying the foundation for lasting positive change in renewable generation, storage, transmission, transport, and efficiency, including through collaborative work with nations in our region.

Related article: Bowen says replacing coal with nuclear would cost $387b

“For her tireless work in this portfolio, I pay homage to my friend, colleague and now Minister, the Hon Senator Jenny McAllister and extend my congratulations on her new appointment.”

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The Greens agreed to back the bill to establish the New Vehicle Efficiency Standard in exchange for Labor abandoning its plan to allow gas projects to bypass environmental laws.

Related article: Govt announces modified New Vehicle Efficiency Standards

In March, the government announced modifications to its original New Vehicle Efficiency Standard in order to boost its chances of being passed in Parliament.

The modifications included:

• Recategorising a limited number of 4WDs from passenger car to light commercial vehicle. This acknowledges that some off-road wagons use similar ladder-frame chassis, and need comparable towing capacity above 3 tonnes, to dual cab utes. This includes models such as the Toyota Landcruiser and Nissan Patrol.
• Smoothing the emissions trajectory for light commercial vehicles. This reflects adjustments announced by the US EPA to its vehicle standard and smooths the transition for utes, vans and 4x4s.
• Adjusting the weight-based relative emissions limits (known as the break point), recognising that heavier vehicles emit more.
• Staging implementation to enable preparation and testing of essential data reporting capabilities. The scheme will commence on 1 January 2025 but manufacturers will not begin earning credits or penalties until 1 July 2025.

The government will provide $60 million to boost EV charging at Australian dealerships, under the Driving the Nation fund.

Advocacy group Solar Citizens welcomed the passing of the New Vehicle Efficiency Standard legislation, with CEO Heidi Lee Douglas saying, “The passing of the New Vehicle Efficiency Standard is a significant acceleration towards cheaper, cleaner vehicles and getting Australians behind the wheel of cars that run on sunshine.

Related article: Labor’s fuel-efficiency standards may settle the ute dispute—but there are still hazards on the road

“The new efficiency standard clears the road for more efficient, cheaper-to-run vehicles in the Australian market, including more efficient petrol models, electric vehicles, and hybrids.

“This new standard will reduce fuel costs for the average driver by about $1000 per vehicle per year. If you charge up your electric vehicle from your own rooftop solar, you can run your car on sunshine and further reduce fuel costs to near nil.”

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Clean Energy Council CEO Kane Thornton said this year’s Budget demonstrated “resolute and ambitious leadership” by the Albanese Government on the nation’s clean energy transition.

Related article: Future Made in Australia Act to drive competitive renewables

“The government is doubling down on clean energy, which will deliver lower electricity prices, thousands of jobs in the clean economy and will set Australia up to fulfil its potential as a clean energy superpower,” he said.

Climate Council CEO Amanda McKenzie also described the 2024-25 Federal Budget as a “decisive turn towards Australia’s clean energy future”.

McKenzie said, “Gas and coal are not part of the budget’s vision for a Future Made in Australia, underlining that our next era of prosperity can be built on cleaner foundations. This is an essential signal across our entire economy.

“Building a renewable future and clean industrial base will deliver good jobs and greater prospects for Australians. This is critical to slash climate pollution and protect our kids’ future.

“Both sides of politics should back this vision for Australia.”

The 2024-25 Budget includes:

Power bill relief

Headlining the 2024-25 Federal Budget is a $3.5 billion energy bill relief scheme that aims to alleviate pressure on households and small businesses struggling to manage rising electricity prices. More than 10 million households will receive a rebate of $300 while eligible small businesses will get back $325 on their energy bills throughout the year.

Investment in renewable capacity

The government is unlocking more than $65 billion of investment in renewable capacity through the Capacity Investment Scheme by 2030.

Measures include investing $27.7 million to integrate consumer energy resources like batteries and solar into the grid, while the New Vehicle Efficiency Standard will save Australians around $95 billion at the bowser by 2050 and reduce transport emissions.

Future Made in Australia

The government’s $1.7 billion Future Made in Australia Innovation Fund delivers a 10‑year extension of funding to the Australian Renewable Energy Agency (ARENA) as well as the $44.4 million Energy Industry Jobs Plan and $134.2 million for skills and employment support in key regions.

The Future Made in Australia package establishes time‑limited incentives to invest in new industries. The Hydrogen Production Tax Incentive will make Australia’s pipeline of hydrogen projects commercial sooner, at an estimated cost of $6.7 billion over the decade. This Budget also expands the Hydrogen Headstart program by $1.3 billion.

Green exports

The 2024-25 Budget provides $32.2 million to fast‑track the initial phase of the Guarantee of Origin scheme, focused on renewable hydrogen, and bring forward the expansion of the scheme to accredit the emissions content of green metals and low‑carbon liquid fuels.

The government is also working closely with trading partners to identify opportunities to drive greater supply chain transparency and better market recognition of high environmental, social and governance standards in the critical minerals sector.

Net zero transformation

Australia is committed to reaching net zero greenhouse gas emissions by 2050 and is developing six sector plans covering electricity and energy; transport; industry; resources; agriculture and land; and the built environment.

The Budget continues investment in effective emissions abatement, including through $63.8 million to support emissions reduction efforts in the agriculture and land sector.

The government is also investing $399 million to establish the Net Zero Economy Authority and support the economy‑wide net zero transformation. This Budget also invests an additional $48 million in reforms to the Australian Carbon Credit Unit scheme and $20.7 million to improve community engagement.

Resources and critical minerals

The government is investing $8.8 billion over the decade to add more value to Australia’s resources and strengthen critical minerals supply chains. The Budget establishes a production tax incentive for processing and refining critical minerals at an estimated cost of $7 billion over the decade. It commits up to $1.2 billion in strategic critical minerals projects through the Critical Minerals Facility and the Northern Australia Infrastructure Facility, and pre‑feasibility studies for common user precincts.

This is in addition to $566.1 million to support Geoscience Australia to map all of Australia’s critical minerals, strategic materials, groundwater and other resources essential for the transition to net zero.

Manufacturing clean energy technologies

The government is committing $1.5 billion to manufacturing clean energy technologies, including the $1 billion Solar Sunshot and $523.2 million Battery Breakthrough Initiative. These investments will be delivered by ARENA.

Related article: Australia invests in resource mapping for energy transition

Strengthening supply chains

To support the delivery of the 82% renewable energy target, the Government has formed the National Renewable Energy Supply Chain Action Plan with states and territories. The Government will invest an additional $14.3 million working with trade partners to support global rules on unfair trade practices and to negotiate benchmarks for trade in high-quality critical minerals.

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Australia is responding to the raft of renewables incentives in US President Joe Biden’s $430 billion Inflation Reduction Act and the European Commission’s Green Deal Industrial Plan.

Related article: Why Biden’s renewables race could set Australia back

In a speech given on Friday night, Albanese said, “Every nation needs to decarbonise and electrify.

“When we talk about a future made in Australia—we want it made the Australian way. Not entering a race to the bottom on pay and conditions but driving a new generation of good jobs and fair wages in safe workplaces. Highly-skilled workers, making high-value products.

“This is a task that traverses far more than energy policy, or industry policy. This is a whole-of-nation opportunity and it demands a whole-of-economy approach.

“It all has to fit together, it all has to pull in the same direction.”

The Clean Energy Council has welcomed the Prime Minister’s comments.

“Reports that the Albanese Government is planning a substantial funding package to respond to the Biden Administration’s US$624 billion Inflation Reduction Act (IRA), are an encouraging sign for Australia’s future as a clean energy superpower.

“The Clean Energy Council has advocated for an Australian response to the heightened competition for capital investment, labour and resources driven by the legislation, as well as the responses from other global players, including the European Union and Japan.”

Clean Energy Council CEO Kane Thornton, said that while further details about a response to the IRA have yet to be made public, the government has demonstrated that it is serious about ensuring that Australia’s clean energy transformation isn’t left behind in the global clean energy investment race.

Related article: Funding to help boost locally made renewable energy tech

The IRA has unleashed a wave of clean energy investment announcements since it was passed in August 2022, exceeding US$420 billion worth of capital investments, 282GW of clean energy projects, and 42,000 American manufacturing jobs.

“Securing and maintaining a solid flow of investment in Australia also works hand in glove with the work of Commonwealth, state and territory governments to coordinate and improve policies aimed at minimising costs and delays, and harmonising elements of our domestic energy transformation,” Thornton said.

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The $2 billion Budget investment in hydrogen aims to position Australia a world leader in producing an exporting hydrogen while reducing our emissions in heavy industry.

“The government is making the biggest ever investment in Australia’s energy transformation. This budget allocates $4 billion to realising our future as a renewable energy superpower, bringing the government’s total investment to more than $40 billion,” Chalmers said.

Related article: Australia to increase tax paid by offshore LNG industry

“This includes part of our $15 billion national reconstruction fund to support the development of green industries, manufacturing and more, and a new capacity investment scheme that will unlock over $10 billion of investment in firmed-up renewable energy projects up and down our east coast.”

A new Powering Australia industry growth centre to help Australians businesses manufacture renewable technologies will also be funded, plus $286 million of investment in the creative sector.

The government will also be investing $1.3 billion to establish the Household Energy Upgrades Fund, to help provide low-cost loans for double glazing and solar panels and other improvements that will make homes easier and cheaper to keep cool in summer and warm in winter.

The Small Business Energy Incentive scheme will ensure small businesses with a turnover of up to $50 million will be eligible for a $20,000 tax break if they invest in energy efficiency upgrades.

Budget 23-24 has been welcomed by industry.

Australian Hydrogen Council CEO Dr Fiona Simon said, “Tonight’s budget is exactly the signal the market needed to remember and then act on—the fact that Australia has the potential to be a world-leading hydrogen producer.

“The AHC commends the Albanese Government for this demonstration of confidence in the vital role that renewable hydrogen has to play in the energy transition, and in Australia’s vital role to be a hydrogen producer for our region.”

Rewiring Australia has declared $1.6 billion in new spending as Australia’s first ‘electrification budget’, which will simultaneously address two of Australia’s biggest challenges: reducing cost of living pressure and cutting greenhouse emissions.

Rewiring Australia co-founder and chief scientist Dr Saul Griffith said the budget was a “profound reset of climate and energy policy after a lost decade under the previous government”.

“This is Australia’s first electrification budget. It positions us to become a world leader in the efficient electric energy system of the future. It demonstrates federal ministers have worked hard to start the massive shift towards a new energy paradigm across the economy,” Dr Griffith said.

“The electrification budget builds on Australia’s love affair with rooftop solar. It will help households to realise cost savings from substituting expensive gas machines for clean, electric alternatives. Tonight’s investment allows us to use abundant Aussie wind and sunshine to power more of our driving, cooking and heating, simultaneously slashing energy bills and carbon emissions.

“We are excited to work with the government over the coming year to optimise the energy system to this commitment to electrification and make these investments go further, and further cut energy costs. We are excited that the government is making a substantial downpayment on an answer to the US Inflation Reduction Act.”

The Climate Council has dubbed the Budget measures as a “slow jog” in the race to tackle the climate crisis.

Climate Council CEO Amanda McKenzie said, “The measures in this budget for cost of living are, for the most part, temporary. This is a missed opportunity to permanently lower people’s power bills. To meet the climate challenge head on, Australia needs to urgently unlock the most affordable energy source available, renewables.

Related article: Australia to legislate national Net Zero Authority

“Sure, this Budget provides renewables assistance to 170,000 households. But when you consider the critical challenge of electrifying everything with renewable power, backed with storage, for 10.8 million households, that barely gets us off the starting blocks.

“The Labor Government has demonstrated in this Budget that they want to support Australians who are struggling. Climate change makes every Australian vulnerable, so the scale of investment on climate action needs to match the task ahead of us.

“We can’t settle for a slow jog when the climate crisis calls for a sprint. Climate change is already reshaping our world, the government needs to fundamentally re-shape the Budget to tackle it.”

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The Opposition unveiled its Driving the Nation policy yesterday, vowing to make electric vehicles more affordable and easier to charge while also tackling emissions caused by heavy transport.

Related article: Ampol unveils plans for EV fast charging network

Opposition leader Anthony Albanese said that in addition to doubling the current $250 million Future Fuels Fund to $500 million, Labor would invest in EV charging infrastructure, make buying an EV more affordable, and fund what it is calling the Hydrogen Highway—a network of hydrogen refilling stations designed stations to encourage the uptake of the nascent technology by the heavy transport industry.

Labor’s investment in the EV Charging Network, with charging stations at an average interval of 150km on major roads, would be matched by the NRMA, and involve partnerships with state, territory and local governments.

EVC chief executive Behyad Jafari said the proposed investment would send a potent signal to consumers and the EV industry.

“Under Labor’s commitment you could be certain that no matter where you live or where you’re going you could get there in an EV,” Jafari said.

“We know range anxiety remains a major impediment to Australians purchasing EVs. Although much of this anxiety is misplaced, building a modern network of charging infrastructure would send a strong signal that there’s nothing to fear.

“City drivers are flocking to EVs because the benefits are so clear and obvious. For regional drivers hesitancy is stronger, but that’s why it’s excellent to see the NRMA committing to partnering with the federal government to roll out regional charging infrastructure and make EVs an option for all Australians.

Related article: Greens to levy coal exports in climate plan

“Despite some very unfortunate fear mongering and a general lack of ambition at the federal level in recent years, Australians are now wide awake to the myriad benefits of EVs.

“If they can see the Australian Government is in behind this shift we will see a rapid acceleration of progress.

“The EVC congratulates the alternate government on this important commitment to Australia’s transport future.”

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By Nicky Ison, University of Technology Sydney

The federal Labor Party this week released the details of its keenly awaited climate policy package.

With a commitment to cutting climate pollution by 45% on 2005 levels by 2030, compared with the Coalition’s 26-28% target, there was never a doubt that Labor’s policy agenda was going to be more ambitious than the government’s.

Read more: Shorten’s climate policy would hit more big polluters harder and set electric car target

But what exactly does it include, how does it stack up against the scientific imperatives, and what’s missing?

By offering a broad platform, Labor has moved away from a single economy-wide policy solution to climate change, such as a carbon price or emissions trading scheme. Instead, it has opted for a sector-by-sector approach.

This is smart politics and policy. By developing a climate plan for each major sector – industry, electricity, transport, and agriculture and land – it is possible to modernise each sector in a bespoke way, thus driving more innovation and job creation while also cutting carbon pollution.

Industry

Labor has taken the politically safe option of expanding the Coalition’s “safeguard mechanism” to lower industrial greenhouse emissions. Under this scheme, big emitters are required to keep their emissions below a prescribed “baseline” level, or to buy offsets if they exceed it.

Labor has lowered the threshold for the scheme, meaning it will now cover all businesses that emit more than 25,000 tonnes of carbon dioxide per year (the cutoff is currently 100,000 tonnes). From there, all of these companies will have to lower their emissions by 45% by 2030 on 2005 levels.

Some details are still to be determined, including the precise trajectories of emissions reductions, the use of offsets (which while welcomed by industry, is considered by many people to be highly problematic), and the treatment of emissions-intensive, trade-exposed industries such as aluminium and cement. As with all complex policies, the devil will be in the detail.

Labor’s policy also includes a “Strategic Industries Reserve Fund”, which would support non-commercial technical innovations to help energy-intensive industries reduce their pollution. The world has already seen significant technical advances, from electrification of gas furnaces, to new cement blends.

But few have been developed, trialled or adopted by Australian industry, and they are not yet as cheap as deploying renewables or energy-efficiency solutions in the electricity sector. The new fund would therefore potentially help drive down emissions in the longer term by opening up access to technologies that are not yet cost-competitive.

Electricity

Labor announced its electricity policy in November 2018, and nothing has changed since. It primarily includes a commitment to adopting the Coalition’s now-abandoned National Energy Guarantee and providing an extra A$10 billion to the Clean Energy Finance Corporation.

Other commitments include plans for energy efficiency, hydrogen power, support for community energy, and establishment of a Just Transition Authority. These are worthwhile next steps, but much more needs to be done to replace Australia’s ageing coal-fired power stations with clean, renewable energy.

Read more: Labor’s policy can smooth the energy transition, but much more will be needed to tackle emissions

Transport

Labor’s transport plans offer a clear chance to deliver economic benefits alongside emissions reductions. It has pledged to introduce vehicle emissions standards equivalent to those in the United States (which are not as strict as those in the European Union).

Australia is the only OECD country that does not have vehicle emissions standards, leaving manufacturers free to dump old, gas-guzzling models on the Australian market. Labor calculates that this costs Australian households an extra A$500 per year in fuel costs, compared with other countries.

Read more: Labor’s plan for transport emissions is long on ambition but short on details

Agriculture and land

Agriculture is the most difficult of all sectors in which to reduce emissions; it is therefore unsurprising that the lightest-touch policy approach is in this sector. Federal Labor will want to take advantage of all the departmental support it can to properly tackle this tough nut.

What it has done is commit to two main policies: strengthening the Carbon Farming Initiative, and ensuring that Queensland’s land clearing laws are applied across the country. The land clearing laws particularly will help reverse the current widespread land clearing occurring in New South Wales, in response to the state government weakening these laws. And comes in stark contrast to the federal government’s proposal to pay farmers not to chop down trees.

Carbon accounting

The final prong in Labor’s climate strategy is to rule out any creative accounting tricks. The Coalition government is proposing to use carryover Kyoto credits that are a result of the Howard government negotiating a “good deal” for Australia in 1997. Labor has ruled out using these loopholes as part of meeting Australia’s international commitments and has also promised to do more to help our Pacific neighbours. This support may be little help, however, if Labor doesn’t strengthen its support for holding global warming to 1.5℃.

What’s left out?

This package is a solid, technocratic basis for tackling Australia’s rising greenhouse emissions. Unfortunately, there remain some glaring omissions.

The biggest omission is the lack of a plan to keep fossil fuels in the ground. Fossil fuels, particularly the mining and export of coal are Australia’s biggest contribution to climate change. Yet the ALP’s policy contains only two mentions of coal, nothing on coal exports, and no mention of gas. Labor is evidently still sitting on the fence on the future of the controversial Adani coalmine, and on the question of fossil fuel subsidies more generally.

There was also no mention of the need to adapt to existing climate change. Given the recent tribulations of Townsville, the Murray-Darling Basin, and drought-stricken farmers, this should surely be a crucial point of emphasis.

Read more: Townsville floods show cities that don’t adapt to risks face disaster

Yesterday’s policy announcement was a missed opportunity to put Australians’ health and well-being at the centre of the climate crisis and redress historical injustices by actively supporting Aboriginal and other vulnerable communities like Borroloola to benefit from climate action.

The lack of focus on health is doubly puzzling, given that Labor already announced a Climate and Health Strategy in late 2017, and could easily have drawn attention to it here.

While there is no doubt that Labor is far ahead of the Coalition on climate change, this package is far from what the science (and schoolchildren!) are telling us is needed.

As bushfires, floods, droughts and protests are all set to continue, don’t expect this issue to go away after the federal election.

Nicky Ison, Research Associate, Institute for Sustainable Futures, University of Technology Sydney

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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By Michelle Grattan, University of Canberra

A Shorten government would add about 100 high polluters to those subject to an emissions cap, and drastically slash the present cap’s level, under the opposition’s climate policy released on Monday.

Labor would aim for a new threshold under a revamp of the existing safeguards mechanism of 25,000 tonnes of direct carbon dioxide pollution annually, which would be phased in after consultation with industry.

This would be a major reduction from the current cap of 100,000 tonnes. About 140 to 160 polluters come under the existing cap.

The safeguards mechanism was established by the Coalition government to cap pollution for the biggest polluters by setting limits or “baselines” for facilities covered. But Labor says it has been ineffective.

On transport, the policy sets an ambitious target of having electric vehicles form 50% of new car sales by 2030. The government fleet would have an electric vehicle target of 50% of new purchases and leases of passenger vehicles by 2025.

The climate change policy covers industry, transport and agriculture, with the proposed measures for the electricity sector, including an in-principle commitment to a national energy guarantee (NEG) and subsidies for batteries, already announced.

The agriculture sector would not be covered by the expanded safeguards policy.

The government’s emissions reduction fund – recently allocated a further A$2 billion over a decade and renamed – would be scrapped if Labor wins the May election.

The climate policy is the third of three key policy announcements the opposition wanted to make before the election is called, likely next weekend. The others were the wages policy and the announcement of the start date – January 1 – for the proposed crackdown on negative gearing.

The opposition has committed itself to a 45% economy-wide reduction in emissions relative to 2005 levels by 2030, compared with the government’s commitment to a reduction of 26-28%.

Labor’s policy confirms that it would not use Australia’s credits from the expiring Kyoto Protocol to help meet its Paris target, saying this course is “fake action on climate change”. Bill Shorten said on Sunday: “It’s only the Australian Liberal Party and the Ukraine proposing to use these carryover credits that I am aware of.”

Labor says it would “work in partnership with business to help bring down pollution.”

“Labor’s approach isn’t about punishing polluters. It’s about partnering with industry to find real, practical solutions to cut pollution, in a way that protects and grows industry and jobs.”

“There will be no carbon tax, carbon pricing mechanism, or government revenue,” Labor says.

“Rather, Labor will reduce pollution from the biggest industrial polluters by extending the existing pollution cap implemented by Malcolm Turnbull.”

“Pollution caps will be reduced over time and Labor will make it easier for businesses to meet these caps by allowing for industrial and international offsets.”

The expanded scheme’s new threshold would capture an estimated 250 of the biggest industrial polluters – 0.01% of all businesses.

Businesses would be able to earn credits for “overachievement” – reducing pollution below their baselines. They could sell these credits or use them to meet their future cap.

“Tailored” treatment would be provided to emissions-intensive trade-exposed industries (EITEs) such as steel, aluminium and cement. There would be a A$300 million Strategic Industries Reserve Fund “to support these industries in finding solutions to cut pollution and remain competitive”.

A Shorten government would consult with industry and experts on baselines for individual entities and the timing of reduction.

It would also put in place “a well-functioning offset market and reinvigorate the land offset market”.

“Currently, a facility that emits more than its baseline must offset excess emissions by purchasing offsets, primarily from the land sector. But currently businesses cannot access international offsets, or offsets from the electricity sector.

“Labor will make it easier for covered businesses to meet any offset obligations, not only by allowing for the creation and sale of offsets if emissions fall below baselines, but also through the purchase of international offsets and potentially offsets from the electricity sector.

“We will also boost offset supply through revitalising the Carbon Farming Initiative (CFI) – including reforms to strengthen the integrity of the CFI, and increasing land and other sector abatement opportunities.

“This will include exploring the establishment of ‘premium’ land sector credits to provide substantial environmental, biodiversity and other co-benefits, establishing a Carbon Assessment Standard to boost the bankability of offset projects, and re-vitalising offset methodology research and development with an additional A$40 million in funding over four years.

“Labor’s plan will help industry reduce pollution at least cost, and give traditional owners, farmers, the forestry industry and traditional owners new opportunities to earn income.”

On transport – which accounts for nearly 20% of Australia’s emissions – Labor says Australia is now last among western countries for electric vehicle uptake.

“Setting a national target will deliver more affordable electric vehicles into the Australian market and drive the switch to electric vehicles, reducing their cost, creating thousands of jobs and cutting pollution.”

Businesses would get an upfront tax deduction to buy electric vehicles, as part of the ALP’s announced Australian Investment Guarantee.

One aspect of moving quickly to government electric vehicle fleets would be that it would develop a secondhand market, Labor says.

“Australia is now one of the only developed nations without vehicle emissions standards in place. As a result, motorists will pay as much as A$500 each year more at the bowser than they should be, as well as seeing pollution on our roads skyrocket.

“Labor will consult on the timeline and coverage of vehicle emission standards to ensure consumers are made significantly better off, and aim to phase-in standards of 105g CO₂/km for light vehicles, which is consistent with Climate Change Authority advice.”

These standards would be in line with those in the United States but less stringent than those in the European Union.

“These standards will be applied to car retailers to meet average emissions standards, rather than imposing blanket mandatory standards on manufacturers.

Michelle Grattan, Professorial Fellow, University of Canberra

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Energy Minister Anthony Lynham said this announcement is delivering on an election commitment and it will help drive down energy prices and support even more jobs in the renewable sector.

“Our support of the renewable energy sector means 4000 Queenslanders are now employed in these jobs,” Dr Lynham said.

“CleanCo will be fully operating with its own generation assets this year and that means more jobs for more Queenslanders.

“This is in stark contrast to the LNP where 1700 renewable jobs vanished.

Related article: Eggshells could crack renewables puzzle

“This third, publicly-owned generator will help to increase electricity supply, driving down prices and cementing reliable supply for households, business and industry.

“CleanCo will build, own, operate and maintain a portfolio of clean energy assets for the benefit of all Queenslanders.

“It’s a long-term structural reform to the energy market that will give Queenslanders maximum competition benefits and increase investment in renewables in the longer term as we head towards a renewable future.”

CleanCo’s foundation generation assets will be transferred from the other two publicly-owned energy GOCs: Wivenhoe near Ipswich, from CS Energy, and Stanwell Corporation’s Swanbank E gas-fired power station in the south-east and Barron Gorge, Kareeya and Koombooloomba hydro plants in Far North Queensland.

Related article: ARENA and AEMC to increase cooperation

Dr Lynham said CleanCo was key to the Palaszczuk Government’s strategy to create jobs and business opportunities in an export-orientated renewable energy sector.

“Queensland has seen 21 large-scale renewable energy projects commence operations in just over two years, and we have another $2.5 billion worth of investment on the books.

“Queensland consumers have taken up our renewable programs enthusiastically, with more than 2000 applications to my department for our latest interest-free loans and grants for solar and batteries.

“By keeping our electricity assets in public hands, we can deliver Queenslanders the cheapest power, the most reliable supply, and a steady transition to renewable energy and a strong renewables sector.”

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The Energy Legislation Amendment (Victorian Default Offer) Bill 2019 will empower the Essential Services Commission to determine a fair price and work with retailers to enforce it.

The legislation will abolish standing energy offers and require energy retailers to offer a fairer price for energy – which could save households around $200 to $500 a year on average on their energy bills.

Related article: New program to drive hydrogen investment

The new measure is part of the Labor Government’s final response to the bipartisan Independent Review of the Electricity & Gas Retail Markets in Victoria.

The Independent Review – undertaken by John Thwaites, Terry Mulder and Patricia Faulkner – was the result of detailed research into energy retail prices and extensive consultation with consumers and industry.

The Review found that intervention was required to ensure better outcomes for customers and recommended a range of measures to put downward pressure on prices and protect low income and vulnerable customers.

Related article: Federal government launches energy advice for small business

The Victorian Default Offer builds on the Government’s work to help Victorians take control of their energy costs by putting solar panels on 700,000 homes – with nearly 10,000 Victorian households installing solar panels since August last year.

The Victorian Government says it also helped more than 200,000 people compare their energy offer through our $50 Power Saving Bonus, saving on power bills.

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Hydrogen is an emerging industry that has huge potential to deliver significant economic, employment, energy and environmental benefits for Australia.

Hydrogen gas is an energy source that can be produced through the process of electrolysis using renewable energy, meaning it can leverage Australia’s world-class renewable energy to make much cleaner hydrogen competitively.

Labor says developing a hydrogen industry will deliver new opportunities for manufacturing, transport and electricity generation.

As the global demand for hydrogen surges to an expected $215 billion market by 2022, Australia is uniquely placed to benefit from the development of this new, job-generating industry.

Analysis by ACIL Allen projects that hydrogen exports alone could be worth $10 billion in 20 years, and create 16,000 new blue-collar jobs – mainly in regional areas.

Most of the benefits of hydrogen development will be in regional Australia. For example, the deep sea water ports of Gladstone and Newcastle are well placed to support a hydrogen export industry.

Related article: New hydrogen partnership announced

While benefiting the nation as a whole, Labor says regional Queensland will be the big winner.

Labor’s six-point plan for hydrogen will:

1. Allocate $1 billion of funding from the Clean Energy Finance Corporation to support clean hydrogen development, from Labor’s commitment to double CEFC’s capital by $10 billion.

2. Invest up to $90 million of unallocated funding from the Australian Renewable Energy Agency to support research, demonstration and pre-commercial deployment of hydrogen technologies.

3. Establish a $10 million ARENA funding round for hydrogen refuelling infrastructure around the nation, from within ARENA’s unallocated funding.

4. Invest $40 million of unallocated funding from the CEFC Clean Energy Innovation Fund to target hydrogen technologies and businesses that have passed the research and development stage.

5. Implement regulatory reforms that will help the industry develop and prosper, including reforms to support the use of existing gas pipelines for hydrogen, reforms to support the shipping of hydrogen, reforms to better support the storage of CO2 from blue and brown hydrogen production, as well as other reforms to support hydrogen use and production.

6. Establish the National Hydrogen Innovation Hub in Gladstone with an initial investment of $3 million. This will kick-start early commercialisation of hydrogen technologies, provide a hub for investment and research agencies, and provide opportunities to leverage LNG infrastructure to support hydrogen exports.

Labor says a Shorten Labor Government will make Gladstone the hydrogen capital of Australia.

Energy Networks Australia has welcomed the commitment by the Labor Party, as has the Australian Gas Infrastructure Group (AGIG).

Energy Networks Australia CEO Andrew Dillon said hydrogen not only had enormous potential as a new Australian export industry, it offered the prospect of zero-emission energy and storage to back up renewable power, utilising existing gas networks.

AGIG’s chief executive officer Ben Wilson said the Labor Party initiative was most timely considering the fast-moving development of the global hydrogen industry and emerging benefits.

Related article: Roadmap finds hydrogen on the horizon

Mr Wilson said the Hydrogen Park SA (HypSA) project will from late this year blend renewable hydrogen into the local gas distribution network in Adelaide, starting the decarbonisation journey.

“Hydrogen is a zero carbon fuel that has the potential to create a major new export industry for Australia, delivering jobs and growth as Australian solar and wind resources are stored in the form of hydrogen and exported to energy hungry North East Asia.  Northern and regional Australia, with the best solar and wind resources, are particularly well placed to benefit,” he said.

“Hydrogen also has the potential to revolutionise the nation’s transport and heat sectors. Hydrogen fuel cell cars, trucks and trains can combine zero emissions electric motors with the fast refuelling and long ranges associated with diesel vehicles today.

“An important consideration for the haulage sector is that hydrogen is actually lighter than diesel per unit of stored energy, whereas batteries are significantly heavier.”

Mr Wilson said hydrogen can be blended into Australia’s natural gas networks and pipelines, to start the journey towards a decarbonised heat sector.

“In the medium term, the gas distribution networks can be converted to 100 per cent hydrogen, delivering zero carbon energy for cooking, hot water and heating,” he said.

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Victorian Minister for Energy Lily D’Ambrosio today announced the Victorian Hydrogen Investment Program, which will help fund a number of initiatives, including a grants program to kickstart Victoria’s hydrogen industry.

Hydrogen produced from renewable technologies presents extensive export market opportunities, particularly to Japan and Korea, and could complement the clean energy revolution in Victoria.

Related article: CEFC says new government mandate business as usual

Ms D’Ambrosio said the technology can help boost local jobs in Victoria while helping tackle climate change.

“We’re investing in this emerging industry so that Victoria is at forefront of the transition to clean energy,” she said.

The program will fund investment in hydrogen research and trials and investigate ways to draw on Victoria’s increasing renewable energy resources and natural gas pipeline infrastructure.

Related article: Clean energy project investment doubles in 2018

The program may also support feasibility studies, business cases and projects that will advance our understanding of how hydrogen can contribute to growing Victoria’s economy and to reducing greenhouse gas emissions.

The Labor Government will increase Victoria’s renewable energy target to 50 per cent by 2030, creating thousands of jobs, putting more energy into the grid and driving down energy prices.

To ensure the program is well targeted, the government will first consult with business and industry through a Request for Industry Submission process, open from Wednesday, December 19 to Thursday, February 28, 2019.

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Federal Labor obviously likes the politics of giving rebates of up to A$2,000 each to 100,000 households of prospective voters so they can install domestic batteries. But is this good policy that will support Australia’s transition to a reliable, affordable, low-emissions energy system, or is it just middle-class welfare?

The Grattan Institute has previously been critical of solar subsidies similar to this program. In 2015 we found that household solar photovoltaic (PV) installations driven by state and federal government subsidies cost Australia around A$9 billion. Many solar incentive programs were uncapped, and their costs blew out as the price of PV systems dropped rapidly.

The parallels with battery technology are clear: batteries may be expensive and uncommon today, but many commentators expect them to drop rapidly in price.

Read more: Households to get $2000 subsidy for batteries under Shorten energy policy

More recently, my colleagues and I have lamented the Victorian government’s return to the bad old days of solar subsidies. Its Solar Homes program promises A$1.24 billion in subsidies over 10 years and would roughly triple the level of household solar in Victoria. Yet most households will be financially better off installing solar even without this subsidy. If fully implemented, it will be a great waste of taxpayers’ money.

The case for public subsidies for household batteries is stronger than for household solar panels. Batteries are better able to help cut the cost of the entire energy system and so don’t just benefit the people who install them – they also benefit electricity consumers more generally. By releasing stored power when most needed, batteries can reduce reliance on expensive “peaking” power plants that operate only at times of high demand. And they can reduce the cost of expanding network capacity to supply all customers at peak times.

By contrast, solar primarily eats into midday demand, which is already low due to the output of the large existing fleet of solar panels. While solar has historically reduced peak demand to some degree, the Australian Energy Market Operator considers that this effect is reducing as solar has pushed peak demand later in the day.

Read more: Slash Australians’ power bills by beheading a duck at night

In a perfect world, households would have enough private incentive to install batteries when they benefit the entire system. If households faced higher electricity prices at times of peak demand, they would be rewarded for reducing system-wide costs by installing batteries.

But we do not live in this perfect world. Governments are reluctant to mandate that households pay higher prices during peak periods, and retailers find it hard to convince households to accept these more complex tariffs. Cost-reflective pricing is unlikely to become widespread any time soon, meaning there is a case for public subsidy to household batteries – provided the subsidies are capped, and end when battery prices inevitably fall.

Using smart controls to coordinate multiple batteries can maximise their benefits. These so-called “virtual power plants” allow the controller to reduce a household’s draw on the grid at peak times, thus reducing costs for both the household and the system. Federal Labor should increase the benefits of its policy by mandating that people who receive a subsidy participate in such a scheme, and by targeting installations to areas where the network most needs support.

Read more: Virtual power plants are in vogue, but they can be like taking a sledgehammer to a nut

On balance, federal Labor’s policy appears to be a sensible step towards a smarter, lower-emissions electricity grid. It can be tweaked to maximise benefits to the whole system, not just to the lucky households that get government assistance. And its cost is capped, which reduces the risk of the sort of cost blowouts that have plagued solar subsidy schemes.

Unlike some of the Coalition’s policies, such as its plan to underwrite new generation, Labor’s battery policy is likely to help rather than hinder Australia’s energy transition.

This article was originally published on The Conversation. Read the original article here.

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It has also promised a $200 million federal solar battery rebate scheme for households and small businesses, where 100,000 Australian households can access a $2000 rebate for the installation of battery systems.

According to the ABC, Labor leader Bill Shorten will promise massive spending on renewable projects, with the Clean Energy Finance Corporation (CEFC) to have its funding boosted to $10 billion.

Labor has also pledged $98.7 million to establish a community power network and regional hubs, as well as investing $206.6 million in the Australian Renewable Energy Agency (ARENA) to support a specific Concentrated Solar Thermal funding round.

Shadow Energy Minister Mark Butler told AM in regards to keeping the NEG, “We remain committed to a bipartisan solution, if that is possible”.

“But we’re not going to wait for this Government.

“We’re willing to work with them, but we’re not willing to wait for them.”

Labor is also promising to expand support for solar installation at a cost of $100 million for lower-income households.

If Labor wins the next federal election, it plans to manage the transition to low-emissions energy with a contracts-for-difference policy instrument, or something similar.

There are six key elements under Labor’s Climate Change Action Plan the party aims to enact to achieve targets.

1. Make Australia a leading renewable energy economy by ensuring that 50 per cent of the nation’s electricity is sourced from renewable energy by 2030, providing the Clean Energy Finance Corporation with more certainty and more flexibility with less red tape and more technology options, and developing new community power projects.
2. Cleaner power generation by ensuring that the modernisation and diversification in Australia’s electricity generation from old heavy polluting coal fired power stations to modern clean energy is an orderly transition, with meaningful support for workers and communities.
3. Build jobs and industry by maximising the job opportunities from clean energy and clean technology, while also securing the future of critical Australian industries through a Strategic Industries Task Force. This will be supported by a Strategic Industries Reserve Fund of $300m to support the transition of key industries to 2020.
4. Cut pollution through an Emissions Trading Scheme with access to international offsets, placing a legal cap on the emissions of large polluters through a cap and offsets scheme, while supporting industry by ensuring access to international carbon offsets.
5. Capture carbon on the land by reinvigorating the Carbon Farming Initiative to encourage carbon storage in agriculture, and taking decisive action to deal with broad scale land clearing.
6. Increased energy efficiency by doubling Australia’s national energy productivity by 2030 and implementing new emissions standards for motor vehicles to cut pollution on our roads.

Related article: New rule means generators must give longer closure notice

Prime Minister Scott Morrison has torn apart Labor’s energy policy, dismissing it as “pink batt-eries”, in reference to the failed pink batts scheme under Kevin Rudd.

“If you couldn’t trust them to put in pink batts in your own roof without it setting on fire, I wouldn’t be trusting Bill Shorten to put a pink battery in your house either,” Mr Morrison told reporters in Sydney.

Energy Minister Angus Taylor has also slammed Labor’s energy policy, saying it will be a wrecking ball through the economy and the battery subsidies being offered are a drop in the ocean.

The Minerals Council of Australia has commented on Labor’s policy, saying it needs a reality check.

“As a number of analysts have outlined, rapidly increasing the level of intermittent renewable energy will lead to the early closure of older low-cost 24/7 power generation, possibly by the mid-2020s – only six years from now,” the Minerals Council said in a statement.

“This should not be cause for celebration.

“This will reduce low-cost baseload power generation in NSW (by 25 per cent), Victoria (22 per cent), SA (22 per cent) and Queensland (15 per cent).

“The challenge for Labor and others proposing rapid increases in renewable energy is to explain how this will occur in just over a decade while ensuring reliable, low-cost, 24/7 baseload energy supply for Australian homes and businesses.”

In the lead-up to the federal election, the Morrison Government has been championing lower power prices for Australians through measures such as forced divestment on retailers.

Bill Shorten says the rebate scheme will mean cheaper energy for Australians.

Labor has a plan to deliver cheaper power bills for Australian households. pic.twitter.com/IHmtQzoDkt

— Bill Shorten (@billshortenmp) November 21, 2018

Energy Networks Australia has welcomed the Federal Opposition commitment to supporting new electricity transmission development as part of its energy policy.

CEO Andrew Dillon said the proposal for a $5 billion investment fund to support projects aligned with those identified by the Australian Energy Market Operator (AEMO) in its Integrated System Plan (ISP) was a positive move.

Mr Dillon said the proposal to support more household batteries was also welcome – provided there was a transition to smarter power pricing.

“Battery storage can help smooth electricity demand and reduce the pressure on the grid at peak times on hot summer evenings,” he said.

“But batteries could make things worse if we haven’t got incentives to encourage people to save money by using less power at peak times. Fairer electricity pricing is the key.”

Related article: Energy companies to fight Morrison’s Big Stick

The Australian Energy Council welcomed Labor’s commitment to the NEG.

Australian Energy Council chief executive Sarah McNamara said Labor’s ongoing support for bipartisan energy policy provides another opportunity for the Government to end more than a decade of policy and investment uncertainty.

“Labor’s announcement today is a positive sign that it has heard the concerns of the Australian energy industry which wants stable carbon policy in order to deliver lower prices,” Ms McNamara said.

“The energy industry recognises that Labor is committed to a stronger carbon target, and welcomes the clarity Labor has provided regarding the role we would play to meet it if it wins government.”

The Australian Petroleum Production and Exploration Association (APPEA) echoed this sentiment, saying that implementing the NEG would help attract new, long-term investments that are crucial in building a reliable, affordable and cleaner electricity sector.

“Australia needs an energy policy framework which cuts emissions without jeopardising reliable electricity supply or inflating energy prices,” APPEA chief executive Dr Malcolm Roberts said.

The Electrical Trades Union has also welcomed the Labor Party’s energy policy to adopt the NEG and support a transition period to renewables through the party’s Just Transition Authority (JTA).

ETU National Secretary Allen Hicks said there was much to like about the announcement but there is more work to do to fix the damage caused by privatisation and the inept regulation of the National Energy Market (NEM).

The Energy Users Association of Australia welcomed some aspects of the announcement.

“Today’s energy policy announcement by Federal Labor recognises the unfortunate reality that gaining long-term bipartisan agreement on energy and climate change policy is likely to be beyond our reach,” EUAA CEO Andrew Richards said.

“We continue to support the NEG framework and would welcome further engagement on how it could be adopted in the future. We feel that it could be a foundation of energy and climate change policy that could work with recent government and opposition initiatives to make them more efficient.”

While many would call a transition to 50 per cent renewables in 11 years ambitious, Greens Leader Adam Bandt says it’s not good enough.

“Labor’s new energy plan gives up on keeping global warming under 1.5 degrees,” Mr Bandt said.

“It lets coal-fired power stations keep running for decades, polluting without restriction.

“It borrows bits from Greens like subsidies for batteries, which we welcome, but ALP has caved in on coal.”

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