The consequences of South Australia’s election result on March 17 will be felt far beyond the state’s borders.
It was barely minutes after the SA Liberals, led by Steven Marshall, were declared winners that the federal Coalition began crowing that this was good news for Prime Minister Malcolm Turnbull’s signature policy, the National Energy Guarantee (NEG).
Victoria became the first state to have a Renewable Energy Target (RET) written into law on October 20. The Victorian RET has been set at 25% renewable energy by 2020, and 40% by 2025.
For a long time, Australian governments have believed that the private sector should run the electricity sector. Successive governments have used market instruments to incentivise reducing emissions, by supporting renewables, discouraging coal use, or both.
In Australia, the National Electricity Market is rapidly becoming dysfunctional, with power shortages, blackouts and soaring prices making headlines.
Private companies are refusing to invest in new fossil fuel generators to replace those that have closed. This “investment strike” is due partly to uncertainty about carbon pricing and partly to increasingly volatile spot prices received by generators.
Readers may have noticed that Australia is in the midst of an energy war. On one side are right-wing commentators attacking renewable energy at every turn. On the other side are renewables advocates, quick to retaliate, sometimes without considering the whole story.
