Coalition’s national energy guarantee predicted to drive up power prices

A national energy guarantee with a more ambitious emissions reduction target of 45% by 2030 would lead to power prices falling over the life of the scheme in contrast to the Turnbull government’s proposal, according to new modelling.

Under the national energy guarantee prices are expected to rise to
$80 per MWh after the Yallourn coal-fired power station closes in 2028.

With the Neg bound for a make-or-break meeting in August, the new number crunching by the respected energy analysts RepuTex, funded by Greenpeace, boosts the case for emissions reduction in the scheme to be made more ambitious.

The modelling, to be released on Friday, compares the impact of the Turnbull government’s proposal – which has an emissions reduction target of 26% and would lead to prices rising – with the 45% target favoured by federal Labor.

Read Katharine Murphy’s story from The Guardian - “Coalition’s national energy guarantee predicted to drive up power prices.”