According to RenewEconomy.com.au , a web-site focusing on clean energy news and analysis, and climate policy, the latest modelling for the federal Coalition’s proposed National Energy Guarantee (NEG) confirms the new policy would effectively shut the door on new renewable investment at national level in the next decade.
The modelling is part of a 50 page document prepared by the Energy Security Board (ESB) for the COAG energy ministers meeting this Friday. The ESB has been established earlier this year by the COAG Energy Council to coordinate the implementation of the reform blueprint produced by Australia’s Chief Scientist.
The modelling suggests that the NEG is barely better than doing nothing. In its low demand scenario, adopting the NEG would only add an extra 1 % of renewable capacity over doing nothing over a whole decade. In its most optimistic scenario, the NEG would add just 4 % of additional renewable capacity over doing nothing. So the incentive for new large-scale investment in renewable energy is largely illusory.