ScoMo pens extraordinary suicide note to coal

Goodness me, they are nuts. Unable to even address their own needs and interests, via The Guardian:

The energy minister, Angus Taylor, has signalled the Australian government could indemnify new power generation projects against the future risk of a carbon price, and says it could also support the retrofitting of existing coal plants.

In an interview with Guardian Australia, the man dubbed the “minister for getting power prices down” by the prime minister, Scott Morrison, has also committed to keeping current subsidies for households and businesses to install renewable energy technology like solar panels until 2030, and insists Australia’s electricity sector will reduce emissions by 26% on 2005 levels in “the early 2020s”.

…Morrison held out the prospect of government support for new coal-fired power stations “where they meet all the requirements” of the yet-to-be finalised mechanisms to boost investment in new electricity generation.

One of the key problems preventing private investment in new coal-fired power generation is proponents have struggled to get finance because they are unable to predict future carbon risk, particularly given Australia’s decade-long partisan standoff over emissions reduction policies.

Taylor told Guardian Australia the government would look to remove the risks stopping investment in new power generation. “I’m saying we will look at whatever risks that can’t be managed by the companies that need to be managed to get investment.

“What we are saying is the risks that government needs to absorb to get investment in reliable generation, we will look at absorbing. We need the investment.”

Asked whether he acknowledged that would expose taxpayers to risk, Taylor said: “We’ll look at the risks and we’ll seek to minimise the risks to the commonwealth.”

The concept of the government underwriting new investments in power generation in order to boost competition in the market was originally recommended by the Australian Competition and Consumer Commission but with tightly defined criteria. The government is pursuing the ACCC’s general principle, but writing its own rules.

The ACCC was focused on encouraging new market participants, but the energy minister said the government could back the retrofitting of existing power plants to extend their operating life.

Extraordinary stuff given Wentworth was just lost on climate change. But it’s the last chance to boost the major sponsor’s hopes before doom takes them all so there you have it. It will also please One Nation voters though sure won’t swing them.

At the AFR the revolution takes shape:

Tuesday saw the federal government go a good deal further than just confirming reports it had asked the Australian Energy Regulator to develop the mechanics of default and reference prices for power prices.

In another invective-charged performance, the new dynamic duo confirmed their plan to lower power prices would involve arming the government with punitive powers persuasive enough to ensure lower wholesale power prices flow speedily through to retail customers.

The weapons of choice that would be pointed at recalcitrant gentailers stretch from enforceable undertakings, to divestment powers that would unpick the vertical integration that might allow the capture of excessive and unearned economic rents.

It is worth noting this part of the plan did not land among the 56 recommendations the ACCC delivered in July with its review of the retail electricity market.

In sum, in a desperate suicide note penned before the May election, we’re going to reboot coal power, fix prices in the electricity market and nationalise the gentailers if necessary.

Never mind that coal power is already obsolete on price. Will be completely obsolete on price including storage long before the coal plants are even built. Thus raising prices into the future. It guarantees as well that the power sector will never be able to contribute the major share to emissions reduction meaning that other sectors will be smashed by it and transport permanently retarded. And if the gentailer ‘big stick’ were pointed further upstream at the gas cartel then none of this would be necessary because gas prices would simply fall enabling combined-cycle and peaking gas plants to deliver what was always intended, low-emissions, base load, coal displacement while renewable storage prices catch down.

This is political suicide, whack ideology, policy bastardry and corruption; every reason that the Coalition is about to be slaughtered at the ballot box all wrapped up in one.

Bill Shorten rejoice!