Australia’s slow march towards a National Energy Guarantee is gathering pace

The finer policy details of the of the proposed National Energy Guarantee (NEG) have begun to leak onto newspaper front pages and websites, ahead of Friday’s crucial meeting of federal and state energy ministers.

Is the long journey towards a bipartisan emissions policy nearing its end?

The good news is that the leaked information suggests solid progress has been made over the past couple of months on both the emissions and reliability components of the policy.

Many of the more extreme and dramatic suggestions contained in the Energy Security Board’s February consultation paper appear to have died a quiet death. What we’re left with is a more sober proposal that does its best to use existing markets and practices – more evolution than revolution.

Read the story from The Conversation by a Grattan Institute Energy Fellow, David Blowers - “Australia’s slow march towards a National Energy Guarantee is gathering pace.”

‘Big issue': Turnbull government's energy plan may curb state ambition

The Turnbull government is set for showdown with states and territories over its signature energy policy after new details of the plan revealed any additional efforts by the states to curb carbon emissions would not count towards the national target.

The emissions intensity of the power sector is on the increase.

A key policy design paper circulated among the states at the weekend and obtained by Fairfax Media appears to  recommend a review of the emissions reductions target only every five years and provides for exemptions of trade-exposed companies that constitute as much as a fifth of demand.

The exemption will be welcomed by manufacturers such as steelmaker Bluescope, but critics of policy regard aspects of the plan including the five-year reviews as inflexible at a time when the energy market is changing quickly.

Read Peter Hannam’s story from The Age - “‘Big issue': Turnbull government's energy plan may curb state ambition.”