In response to the Energy Security Board’s (ESB) high-level design paper for a capacity mechanism, the Clean Energy Council continues to highlight the critical importance that any new policy mechanism delivers rapid investment in renewable generation, storage and transmission and avoids locking in old coal and gas which are at the heart of the current energy crisis.
This is the only way to bring prices down and prevent the current fossil fuel energy price crisis from happening again.
It is critical that any capacity mechanism must be oriented towards accelerating investment in new renewable energy generation and storage, while minimising the degree of further regulatory complexity faced by renewable investors.
Any scheme that ultimately subsidises existing coal plants and unnecessarily prolongs the life of fossil fuel generation that is both high emitting and increasingly unreliable commits Australia to an uphill battle in meeting new climate goals. It will also delay investment in the new renewable generation and storage capacity that is desperately needed, resulting in more price shocks and energy shortfalls.
The Clean Energy Council will continue to engage with the ESB, along with federal, state and territory governments to ensure that any new policy does not undermine confidence in new clean energy generation.