By Andrew Bolt ~
Wholesale electricity price reductions that the Turnbull government attributes to its preferred National Energy Guarantee policy will really be driven by the existing Renewable Energy Target, government modelling says.
The government released a summary of the modelling on Tuesday claiming wholesale electricity prices will be 23 per cent lower under the National Energy Guarantee than under business as usual over the decade from 2020 to 2030.
But the wholesale price falls modelled by Frontier Economics for the Energy Security Board ahead of Friday’s energy minster’s meeting all occur in the next three or four years – the period during which the Renewable Energy Target climbs to its peak and before the guarantee starts.
“The steep decline in wholesale prices under both BAU (business as usual) and guarantee from 2018 to 2022 is due to the committed entry of almost 6,000 MW of renewable capacity across the national electricity market, principally incentivised by the existing Renewable Energy Target,” Frontier’s modelling says, according to an industry source.
The paragraph was omitted from the summary of the modelling released on Tuesday, which Prime Minister Malcolm Turnbull used to pressure the states into getting behind the guarantee at this Friday’s meeting of energy ministers in Hobart.
The government released a summary of the modelling on Tuesday claiming wholesale electricity prices will be 23 per cent lower under the National Energy Guarantee than under business as usual over the decade from 2020 to 2030.Andrew Bolt writes for the Herald Sun, Daily Telegraph, and The Advertiser and runs Australia’s most-read political blog. On week nights he hosts The Bolt Report on Sky News at 7pm and his Macquarie Radio show at 8pm with Steve Price.
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