Australia considers emissions targets in power planning

Australian energy ministers are to decide next week on including environmental considerations such as greenhouse gas (GHG) emissions reduction targets into electricity network and generation planning.

This aims to accelerate the transition to a power system supplied by renewable energy sources and create the infrastructure to develop a green hydrogen sector. The meeting of Australian federal, state and territory energy ministers on 12 August in Canberra will debate and vote on including the environment into the National Electricity Objective (NEO), which is the framework that energy regulators approve power generation and transmission projects.

The absence of including emissions reduction and renewable energy targets has slowed the development of renewable energy projects. The inclusion of environmental objectives in the NEO should assist the Australia's government achieve its target of reducing GHG emissions by 43pc by 2030 from 2005 levels after passing its climate bill in the lower house of parliament on 4 August.

The proposal to include the environment in the NEO has been led by the Australian Capital Territory (ACT) minister for energy and emissions reduction Shane Rattenbury.

"At the energy ministers' meeting in September last year, I secured agreement for the ACT to lead work towards incorporating emissions reduction into the National Electricity Objective working in collaboration with the Queensland government," Rattenbury said.

"Reflecting emissions reduction goals in the NEO is important for ensuring emissions intensity of generation is considered and reducing emissions is prioritised.

"We need to act quickly if we are to have any chance of meeting Australia's net zero emissions by 2050 target, and this means rapidly reducing emissions from the energy sector. Reflecting the net zero emissions goal in the NEO will help to ensure an efficient and co-ordinated national approach to decarbonisation."

The Labor federal government, which was elected in May, has set a target of sourcing 82pc of electricity from renewable sources by 2030 in the National Electricity Market (NEM) that covers east Australia and accounts for more than 80pc of the country's power demand. Around a third of electricity in the NEM came from hydro, solar and wind sources in the past 12 months. Coal-fired power plants generate around 60pc of the NEM's electricity.

By Kevin Morrison