Draft Energy White Paper Released
The draft Energy White Paper sets out a series of proposed Commonwealth Government priorities to address challenges confronting Australia’s energy sector.
It identifies four priority areas for further action:
- Strengthening the resilience of Australia’s energy-policy framework;
- Re-invigorating the energy market reform agenda;
- Developing Australia’s critical energy resources – particularly gas; and
- Accelerating clean energy outcomes.
Launching the document, Minister for Resources and Energy, Martin Ferguson outlined the emerging challenges facing Australia’s energy sector, and reiterated the role of the Energy White paper in laying out the Commonwealth Government's policy framework to address these challenges for the benefit of the community as a whole.
“Over the next two decades, Australia will require massive investment in the gas and electricity sectors – around $240 billion in generation, transmission and distribution,” Minister Ferguson said.
“We need sound regulatory frameworks and confidence from investors to ensure that the necessary investment is delivered, and the White Paper seeks to deliver this stable framework.
“The 2011 National Energy Security Assessment shows that overall Australia has a positive energy security assessment but we must remain vigilant, and the White Paper seeks to establish a more robust policy framework to increase our responsiveness to emerging challenges.
“In a period of significant change, improving the resilience of energy policy is critical. The Government therefore proposes that a strategic review of national energy policy be undertaken every four years, supported by a review every two years of national energy security. This will allow us to assess, and respond as required to emerging strategic market or policy developments in a timely and predictable way.
“The White Paper also focuses on the next round of energy market reform, including further privatisation of energy assets and the removal of retail price regulation to increase efficiencies and remove distortions in markets that deter private sector investment and are harmful to consumers’ interests.
“Further work should also be undertaken to extend energy market governance arrangements and principles to all Australian energy markets.
“In terms of consumers, the Government recognises that the community has experienced a period of rising energy prices. The White Paper recognises the need for greater consumer engagement to improve community understanding of investment and price drivers, which can lead to greater empowerment in terms of making informed decisions around managing energy use and associated costs.
“In a period of significant change, improving the resilience of energy policy is critical. The Government therefore proposes that a strategic review of national energy policy be undertaken every four years, supported by a review every two years of national energy security. This will allow us to assess, and respond as required to emerging strategic market or policy developments in a timely and predictable way.”
Alongside the release of the draft Energy White Paper, and following the passage of legislation giving effect to the carbon price, the Government is also today announcing it will no longer proceed with the introduction of emissions standards or Carbon Capture and Storage Ready requirements for new coal fired power stations.
“With the legislation of a carbon price, the Government has a position that it is best to let the market determine the most efficient investment outcomes within the energy market, carbon price and Renewable Energy Target framework,” Minister Ferguson said.
The Department of Resources, Energy and Tourism will now begin a period of consultation on the draft Energy White Paper, including information sessions to be held in every state and territory capital city.
Written submissions are invited to be received no later than 16 March 2012. The Government intends to release the final Energy White Paper around mid 2012. The draft Energy White Paper and associated material is available at www.energywhitepaper.ret.gov.au.