Why the Coalition’s “clean” coal plans are just a smoke dream

Oliver Yates.

The Coalition government appears determined to try to force the Clean Energy Finance Corporation to invest in new so-called “clean coal” plants, with both the energy minister Josh Frydenberg and finance minister Mathias Cormann saying they were prepared to re-write the CEFC investment mandate.

“That is certainly one of the options that we are looking at because we have recognised that we have an obligation after what we have seen in South Australia to ensure that this does not happen across the country,” Frydenberg said on Sunday in now widely reported comments.

But simply re-writing the investment mandate may not be enough, given that it is clear that coal is a much costlier and dirtier alternative to new wind and solar farms. The government would likely have to commit billions of dollars in indemnities and guarantees to get any such coal investment over the line.

This was the point made by outgoing CEFC chief executive Oliver Yates in his appearance before the Senate committee into Australia’s energy security in Canberra just over a week ago.

Read Giles Parkinson’s story on RenewEconomy - “Why the Coalition’s “clean” coal plans are just a smoke dream.”