The Government claims the new plan — including a National Energy Guarantee, or NEG — will be kinder to hip pockets and will reduce emissions enough for Australia to uphold its end of the Paris climate change agreement.
The Government is effectively putting the onus on retailers to guarantee (the G in NEG) two things: reliable supply and emissions reduction.
The first part of that means power companies would be required to use a percentage of electricity from so-called dispatchable sources such as coal, gas, batteries and pumped hydro.
Base load power is a term we're hearing a lot in discussions about our energy future. But what does it mean, and is it really relevant?
This would be ready to use at short notice to stop blackouts like the one seen in SA last year.
It would also keep the power system stable at a lower price because it would be done via long-term contracts, not the short-term spot price.
The second part — reducing emissions — means they'll be scrapping subsidies and incentives for renewables and instead expecting retailers to ensure the power that they're buying is efficient enough to help Australia meet its international obligations (i.e. what we signed up to do during the Paris climate change conference).
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