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ACCC urges Australian government to underwrite long-term energy contracts

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World Coal,

The Minerals Council of Australia (MCA) has welcomed the recommendation of a report from the Australian Competition and Consumer Commission (ACCC) that the government underwrite long-term energy contracts to secure private investment in new low-cost power generation capable of meeting the needs of Australian industry.

In a press release, the MCA said that adopting this recommendation would “benefit all energy consumers – particularly Australian industry including the world-class mining sector, which uses more than 11% of Australia’s power.”

“Secure power supply agreements would enhance the opportunity for private sector financing of a new coal or gas plant in Australia capable of delivering least-cost power 24/7.”

The MCA also said that adding new low-cost baseload power generation would help Australia meet its emissions reduction targets and was therefore essential for Australia’s future.

As the MCA noted in its submission to the 2017 Climate Change Policy Review, “approximately 8000 MW of baseload coal and gas capacity is likely to retire between now and 2030. This represents a decrease of about 27% in our baseload capacity – that is power which is provided 24/7.”

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Australia coal news Minerals Council of Australia news