Here it is:
The Australian Government should operate a program under which it will enter into low fixedprice (for example, $45–$50/MWh) energy offtake agreements for the later years (say 6–15) of appropriate new generation projects which meet certain criteria. In doing so, project developers will be able to secure debt finance for projects where they do not have sufficient offtake commitments from C&I customers for later years of projects. This will encourage new entry, promote competition and enable commercial and industrial customers to access low-cost new generation.
And the scab grab begins, at The Australian:
A proposal for the federal government to financially guarantee the construction and operation of new dispatchable power generation, which could include clean coal-fired plants, is expected to be taken to cabinet with the backing of the Prime Minister.
Malcolm Turnbull yesterday confirmed he would seriously consider the key recommendation of a report by the competition watchdog to underwrite and potentially subsidise new “firm” and cheap power generation for industrial and commercial users.
Signalling a possible end to the energy wars within the Coalition partyroom, the recommendation was immediately endorsed by Nationals MPs, who have interpreted it as a green light for government to intervene in supporting the future of coal generation.
And the AFR:
Currently there are two integrated energy projects that would obviously meet the trigger criteria the ACCC has proposed. Both involve importing liquid natural gas to resolve the quite particular gas and electricity supply problems of two states, South Australia and NSW.
And both would raise power costs relative to business as usual.
The one policy reform so far that has worked to lower power prices is gas reservation. It has halved gas prices and dropped power prices by one third. This was in defiance of the ACCC’s wishes and was only necessary in the first place because it allowed the consolidation of east coast gas reserves under the export cartel.
Reservation works in WA. It works in every other energy exporter. This is the energy intervention needed. Just force 10% of east coast exports into the domestic market. Use quotas if needs be.
Instant cheap energy and carbon transformation back on track for the long term.
Still, if the ACCC wants to impose a government guaranteed private carbon tax then why not? The higher power prices will only accelerate the unstoppable, via Reneweconomy:
That’s because the falling cost of battery storage means the combination will soon be economic, with the pink lines indicating the spread between different states. In South Australia, for instance, it is already “economic”, which BloombergNEF says is less than a 10 year payback.