Statement regarding proposed changes to clean energy finance corporation

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However, allowing the CEFC to invest in gas generation is an unnecessary distraction and could further undermine investor confidence in new renewable energy and the energy sector in Australia. The CEFC should continue to focus on clean technologies. The Clean Energy Council, therefore, encourages the Australian Parliament not to support the proposed change to the ‘low-emission technology’ definition which would allow it to support higher emissions generation.

The biggest challenges facing our energy system relate to network congestion and constraints. We need further investment to build and strengthen our electricity system through both poles and wires as well as new smart grid supporting technologies that address highly technical issues such as system strength.

This is confirmed in two recent Australian Energy Market Operator (AEMO) reports – the 2020 Electricity Statement of Opportunities (ESOO) and the 2020 Integrated System Plan (ISP).

The ESOO confirms that in future years, declining reliability of the aging coal fleet and scheduled plant closures can be addressed through timely investment in transmission, renewable energy generation and storage. AEMO’s ISP confirms this as it forecasts no need for new gas generation investment over the next two decades.