MCA, federal Minister blast Victoria’s renewable energy targets

25th August 2017 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – The Minerals Council of Australia (MCA) has blasted the Victorian government’s attempts to legislate renewable energy targets of 40% by 2025, warning that it would see energy costs in the state further increase.

The state government this week introduced legislation to the state Parliament to legislate renewable targets of 25% by 2020 and 40% by 2025, claiming it would result in lower power bills across the state.

The Victorian government was also supporting a “reverse auction”, which would see industry come forward with proposals to build 650 MW of green energy generation.

However, the MCA’s director for climate change, environment and energy, Patrick Gibbons said on Friday that the Victorian government was ignoring recent endorsements of a technology neutral and nationally co-ordinated approach to energy and climate policy.

“No credible modeling has been released to substantiate the Victorian government’s claims that the renewable energy targets will reduce energy prices. The Australian Capital Territory policy, on which the Victorian approach is based, is expected to cost households an extra A$114 per year.

“Equally concerning is the announcement of the first Victorian renewable energy auctions, A$1.3-billion of additional capacity that fails the technology-neutrality test and force-feeds more variable renewables to Victoria, affecting the security and stability of Victoria’s power supply,” said Gibbons.

He warned that due to the interconnectedness of the National Electricity Market, households and businesses across the East Coast, especially energy-intensive businesses, would bear the brunt of the Victorian government’s “crusade against low cost energy sources”.

“If the Victorian government was really concerned with lowering energy costs while also ensuring reliability, it would make the reverse auction open to all technologies,” Gibbons said.

Meanwhile, federal Environment and Energy Minister Josh Frydenberg has labeled the Victorian plan as “reckless”, saying it would increase prices of energy, destroy jobs and cripple the energy system.

“The move flies in the face of advice from the Australian Energy Council, Energy Users Association, Business Council of Australia, Australian Chamber of Commerce and Industry, Australian Industry Group and the Grattan Institute, who called Victoria’s policy a “nasty dog’s breakfast,” Frydenberg said.

He said that the Victorian government was following in the South Australian government’s footsteps, which rushed into renewables and pushed out coal.