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17 October 2017

Manufacturing Australia welcomes government’s new energy plan



Manufacturing Australia today welcomed the government’s new energy plan, saying it was right to focus on affordability and reliability alongside emissions reduction, and encouraging all parties to make a “clear eyed assessment” of the plan.

“This could be the energy policy compromise that Australian industry has been waiting for. It recognises the importance of renewables to reducing emissions but also prioritises affordability, security and a diverse energy mix,” said Executive Director, Ben Eade. 

"If this plan can encourage energy investment, without picking winners or relying on costly subsidies, then it could be a breakthrough."

Mr Eade said the best system for energy users is one that has a diverse mix of technologies. In Australia’s case, that means encouraging investment and competition in wind, solar, hydro, gas and coal fired generation, rather than picking winners.

“It is clear that renewables generation will play a growing role in Australia’s future energy mix. It is therefore right for policymakers to focus on the challenges of maintaining affordability and reliability as we integrate more renewables into the grid, rather than continuing to subsidise new generation.”

“The Finkel review and recent reports by AEMO and the ACCC have redefined the problems facing Australia’s energy market. Restoring Australia’s international energy cost advantage, securing and transforming our baseload generation and tackling market concentration should be our main policy objectives.”

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Contact: Ben Eade, Executive Director, 03 9023 9117