Transition of the National Electricity Market under the NEG

States right to reject National Energy Guarantee

State and Territory Governments are absolutely right to reject the current National Energy Guarantee (NEG).
The NEG is a dud. The more we examine it, the more problems we uncover.
There are five fundamental flaws with the NEG:

  1. It doesn’t encourage investment in renewables or any form of new generation;
  2. It doesn’t cut coal pollution;
  3. It doesn’t reduce power bills;
  4. It can’t be easily changed; and
  5. The final design hasn’t been settled by the Coalition Party Room.

No investment in renewables

This is how much investment in renewables is delivered by the NEG:

Yep. 14 megawatts of wind. Four new wind turbines. No large-scale solar. For a decade.

No cuts to coal pollution

This is how much the NEG cuts coal pollution:

Yep. No change to Australia’s energy mix. Coal pollution baked in as the planet bakes.

*Our thanks to Simon Holmes a Court, Senior Advisor to the Energy Transition Hub, Melbourne University, for his great charts and detailed analysis of the NEG.

Doesn’t cut power bills

There is no evidence on the public record to demonstrate how the NEG cuts power bills.  It just asserts that it will.

We know the Renewable Energy Target is driving down the wholesale cost of electricity and we know the NEG curtails investment in renewables.

But despite significant new compliance costs, and less market information, the Turnbull Government insists that power bills will somehow magically fall.

The Turnbull Government has refused to release the economic modelling and it has refused to reconcile its conclusions with those of AEMO and leading economic modellers Reputex.

What has been released does not add up.  We don’t believe them and nor should Australian families.
Impossible to change

Once all governments have signed off on the NEG, it will be almost impossible to change.

To change it all governments would need to agree.In the mean time contracts will have been entered into, opening governments up to significant compensation claims.

The NEG mechanism has never been implemented anywhere in the world and has been developed in a rush.

The potential for negative unintended consequences is massive and profound, but if it’s proven to be a dud it will be almost impossible to fix.

Worse, there is no credible mechanism for increasing Australia’s emissions reduction target.

That pathetic emissions reduction target would be locked in for a decade and that means Australia will become an international pariah, walking away from its global climate change commitments.

What will Abbott and Co do to the NEG?

The final design of the NEG won’t be confirmed until it has passed federal parliament.

Imagine what Tony Abbott and his mates will insist on to let it through:

  • A $5 billion coal fund?
  • Lower emissions reduction target?
  • Axing or changing the Clean Energy Finance Corporation and ARENA?
  • Immediately axing the Small Scale Renewable Energy Scheme (SRES)?

State Governments are absolutely right to demand that Malcolm Turnbull does not ‘deal in’ other anti renewable measures as part of the government’s agenda.

Smart Energy Council action

The Smart Energy Council is working around the clock to ensure the current NEG is not adopted.

Constantly briefing State Governments and the media.

There are 3 things you can do to help:

1. Tell your story publicly – how will a renewable energy target of zero affect your business?  Reach out to us and we will link you with local press.

2. Send an email to state Premiers and Energy Ministers:

3. Donate to keep us on the road:

Upcoming Events

2 Apr
International Convention Centre Sydney, NSW