❓ Mr Nalder questions the Treasurer on the cost implications of a potential Federal Labor renewable energy policy, particularly regarding the early closure of power plants. The Treasurer acknowledges the need for further analysis and potential impacts on WA's energy sector.
AnsweredQoN 970Legislative Assembly
QuestionView source ↗
COST OF LIVING — FEES AND CHARGES —
FEDERAL LABOR POLICY —RENEWABLE ENERGY TARGET
970. Mr D.C. NALDER to the Treasurer:
I have a supplementary question.
Surely the Treasurer would agree that, prior to implementation, further
analysis needs to be undertaken to actually understand the cost implications
for the state. Can the Treasurer confirm that it is possible that this will
lead to an early closure of Muja C and D and other generating plants around Western
Australia?
FEDERAL LABOR POLICY —RENEWABLE ENERGY TARGET
970. Mr D.C. NALDER to the Treasurer:
I have a supplementary question.
Surely the Treasurer would agree that, prior to implementation, further
analysis needs to be undertaken to actually understand the cost implications
for the state. Can the Treasurer confirm that it is possible that this will
lead to an early closure of Muja C and D and other generating plants around Western
Australia?
AnswerView source ↗
I confirm it will need more work. I think
the member will recall my comments, both in an opinion piece in The West
Australian —I squeezed one in between those of the member for Vasse—and
my comments in this place; that is, the national energy guarantee was always a national
energy market–focused policy. I was very, very clear to the Energy Security Board and Dr Kerry Schott, because
ultimately the WA taxpayer is also funding the Energy Security Board,
that we needed to ensure that Western Australia was incorporated in that
modelling. Dr Schott got that. The then energy minister Josh Frydenberg got
that, as did Malcolm Turnbull and Mark Butler. I had the conversation with them
at the time. Sadly, we have seen where that led. Clearly, I accept that the
modelling around the impacts on Western Australia needs to take place. Because
of our fantastic use of gas in our electricity system, Western Australia has
lower average emissions than all the other states in the electricity system, but
we have an economy that is a high emitter. Clearly, we do need a better
understanding of how it will impact on Western Australia, and particularly our
LNG sector, which allows other nations to lower their own carbon footprint. We
do need a good understanding around that. Clearly, that work will take place.
The member's second question was: will it bring forward closures of
power stations? I cannot say what the impact will be on some of the older
generation assets of Synergy, but clearly there may well be an impact. We will
have to have an understanding of that when the design of this policy takes
place in the event, as the member seems to think, that Bill Shorten becomes
Prime Minister. Once that takes place and we get a better understanding of the
policy, we will get a better understanding of the impact on our own generation
assets.
the member will recall my comments, both in an opinion piece in The West
Australian —I squeezed one in between those of the member for Vasse—and
my comments in this place; that is, the national energy guarantee was always a national
energy market–focused policy. I was very, very clear to the Energy Security Board and Dr Kerry Schott, because
ultimately the WA taxpayer is also funding the Energy Security Board,
that we needed to ensure that Western Australia was incorporated in that
modelling. Dr Schott got that. The then energy minister Josh Frydenberg got
that, as did Malcolm Turnbull and Mark Butler. I had the conversation with them
at the time. Sadly, we have seen where that led. Clearly, I accept that the
modelling around the impacts on Western Australia needs to take place. Because
of our fantastic use of gas in our electricity system, Western Australia has
lower average emissions than all the other states in the electricity system, but
we have an economy that is a high emitter. Clearly, we do need a better
understanding of how it will impact on Western Australia, and particularly our
LNG sector, which allows other nations to lower their own carbon footprint. We
do need a good understanding around that. Clearly, that work will take place.
The member's second question was: will it bring forward closures of
power stations? I cannot say what the impact will be on some of the older
generation assets of Synergy, but clearly there may well be an impact. We will
have to have an understanding of that when the design of this policy takes
place in the event, as the member seems to think, that Bill Shorten becomes
Prime Minister. Once that takes place and we get a better understanding of the
policy, we will get a better understanding of the impact on our own generation
assets.
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