Australia Plans To Scrap Subsidies For Clean Energy

- Oct 26, 2017-

China energy storage net news: on October 17, the Australian government announced that it would implement a new energy security plan, encourage various power investment form, starting in 2020 at the same time no longer provide renewable energy subsidies.

This is seen as the next step in Mr Trump's repeal of the clean power plan.

According to Australia's official news, the government will accept the national energy commission (ESB) put forward Suggestions for the new national energy security, in the execution of the Paris agreement at the same time, provide more cheap and reliable electric power.

The guarantee scheme is mainly composed of two parts, one is the requirement of the Australian energy suppliers each year on the basis of providing reliable and low carbon power, according to the requirements of the state, provide a certain proportion of other energy sources, including coal, natural gas, pumped storage, etc.

The second is to eliminate subsidies for solar and wind power from 2020 to help consumers cut power costs.

Australian prime minister Malcolm turnbull says the government must ensure that households and businesses can afford reliable electricity in order to transform Australia's energy economy.

The ESB recommends that various forms of power investment be encouraged to control the price of electricity within the "clean energy target".

Australian household electricity bills have risen 63% since 2007, according to the Australian consumer watchdog.

The ESB forecasts that, under the new energy security scheme, the average household electricity bill in Australia will be reduced by an average of 110 to 115 Australian dollars per year between 2020 and 2030.

Mr Turnbull said in a statement, the national energy security plan will reduce the price, the electric power system is more reliable, encourage the right investment, in the absence of subsidies, taxes or emissions trading scheme to reduce emissions.

Coal, natural gas, hydroelectricity and biomass are all in the form of satisfactory returns, but wind, solar and hydroelectric power are not subsidised because they are competitive enough.

In the past few decades, many in Australia have argued that the transition to renewable energy would make Australia lose competitiveness, weaken its industrial influence and even raise electricity prices.

Rod SIMS, chairman of Australia's competition and consumer council, rejected speculation that renewables could cause a rise in electricity prices, arguing that renewable energy has little impact on electricity prices.

He says that 41 percent of the rising electricity bills are grid maintenance costs, with suppliers charging up to 24 percent for additional fees and 16 percent for green energy projects.

There have been comments that Australia's new energy security plan looks like a copy of the trump energy policy, a step backward in global climate action.

The opposition Labour party has accused the government of "desperately undermining the renewable energy industry" and limiting the country's growth over the next decade.

Australia is one of the world's largest exporters of coal, with more than half the electricity generated, and is therefore one of the world's worst emitters of greenhouse gases.

The Australian government has previously proposed clean energy targets, with 23.5% of its electricity coming from renewable sources by 2020 and a 26% to 28% reduction in greenhouse gas emissions by 2030.

Australia's energy minister said frieden fort, by 2030, coal and natural gas power generation electricity market in Australia accounted for 64% to 72%, 2020 76.5%, which means that Australia have not departed from the rail of clean energy goals.