Shadow energy minister Ted O’Brien has revealed the opposition’s plans to add gas projects to the government’s renewable energy and battery storage investment.
The opposition has announced its intention to expand the government’s renewable energy and battery storage investment scheme to include gas projects.
Shadow climate change and energy minister Ted O’Brien revealed the opposition’s policy at the Australian Pipelines and Gas Association Convention on Tuesday.
The shadow energy minister said: “We take an ‘all-of-the-above’ approach to energy whereas Labor takes an all-eggs-in-one-basket approach.”
“This policy is … aimed at sending a message to industry and trading partners alike that the Coalition backs gas.”
Mr O’Brien revealed if the Coalition won the next election, it would add auctions for new and existing gas capacity to the Capacity Investment Scheme (CIS).
“These contracts will include bidding obligations to ensure that the reduced commercial risk of participating in the (CIS) is passed on to consumers in the form of lower electricity prices,” he said.
The CIS has been designed to provide a national framework to “encourage new investment in renewable capacity” by using taxpayer money to underwrite renewable energy projects.
While the Albanese government has barred gas from the scheme, Mr O’Brien said the Coalition would allow public funds to be used for new gas plant constructions.
He added the amount and timing of capacity was still to be determined.
Energy Minister Chris Bowen has previously rejected the idea of government subsidies for gas and reiterated the government’s commitment to renewable energy.
Meanwhile, the Australian Energy Market Operator has maintained 26 new gas plants would be needed within the next 25 years to support the rollout of renewables on the journey to net zero.
The Coalition recently announced it will release its major nuclear and economic policies ahead of the upcoming federal election.
While the opposition has committed to “renewables firmed by gas and nuclear”, the cost of Mr Dutton’s nuclear policy has yet to be revealed.
Conversely, Labor has bet on an all-renewables energy policy to achieve 82 per cent renewable energy by 2030 and net zero carbon emissions by 2050.
Energy policy has geared up to become one of the major platform divides between Labor and the Coalition heading into the federal election predicted to be held in May.
