Frydenberg set to sabotage Clean Energy Finance Corporation

Queensland’s Energy Minister has criticised the Turnbull Government’s plan to use the Clean Energy Finance Corporation (CEFC) to subsidise coal-fired power plants that nobody wants to invest in.

Mark Bailey said the proposal which would mean changing legislation so that the Turnbull Government could pillage the $10 billion CEFC to fund their own political agenda was outrageous.

“The CEFC was set up as a new source of finance for renewable energy, energy efficiency and low emissions technologies – not to fund coal-fired power stations which would lock in high emission levels for 50 years, whether the latest technology is used or not,” he said.

“Investors and the energy industry won’t fund a new coal-fired power station because they know that their lengthy pay back periods mean huge amounts of money will be lost because of the rapidly falling cost of renewable energy.

“Peak business body the Australian Industry Group is also on the public record expressing concern that new coal power station construction could double electricity prices for consumers which would be a disaster for jobs and for our economy.

“The Turnbull Government is out of step with industry. They are out of step with economic reality.

“The Turnbull Government wants taxpayers to prop up this ridiculous idea and in return they’ll have to pay more for electricity, it’s absurd.

“They want to fund expensive new coal-fired stations instead of cheaper renewable energy projects, including solar thermal, that will burn up taxpayer money.

“Not to mention the irony of the LNP wanting to subsidise coal-fired generation on the basis of reducing emissions.

“Josh Frydenberg is an anti-environment minister if he thinks coal-fired power stations are clean energy and a dud energy minister trying to inflict higher electricity prices on consumers.”

Mr Bailey said Queensland had been at the forefront of investigating carbon capture and storage.

“Unfortunately, as we saw with the ZeroGen project, the costs of developing an integrated coal-fired power plant with carbon capture and storage was cost prohibitive,” he said.

“Josh Frydenberg claims to be looking at all the options to ensure security and affordability, as we transition to a low-emissions future, but he’s already ruled out an emissions intensity scheme because of backlash late last year from within the LNP.

“Within 24 hours he did an about face after being lambasted by the extreme right within the LNP, despite being told by industry and experts that building new coal-fired power stations isn’t a good plan, he’s still going ahead with it.  It defies logic.”

Mr Bailey said Queensland’s ample existing traditional baseload fleet of efficient generators would continue to be an important part of Queensland's energy mix for years to come but that we have to plan for renewable energy in the mix.

“We have the most robust electricity system in the nation and all the technology to fully integrate renewables exists and is better used in other nations according to Dr Alan Finkel who is reviewing the National Energy Market.

“It's time Australia caught up with best practice.

“There is absolutely no leadership on credible energy policy at the federal level and their back to the future plans that industry won’t support is proof of this.

“Queensland is committed to a real clean energy future unlike the Turnbull Government and we’ll continue to act on climate change by transitioning gradually and sustainably to get there.”

ENDS

Media contact: Zoe Russell - 0428 079 640