PLEA Network

11 August 2016, Renew Economy, Frydenberg to push ahead with repeal of ARENA grant funding. New environment and energy minister Josh Frydenberg says the Coalition government intends to go ahead with its plan to strip $1.3 billion of funds from the Australian Renewable Energy Agency and end its grant-funding mechanisms, and says he expects Labor to support it. In an interview with RenewEconomy on Thursday, Frydenberg also canvassed other policy areas under his new combined portfolio. Among the highlights: He repeated his pledge that the current renewable energy target is “set in stone”, despite a big push from some in the fossil fuel industry to have the target weakened further. He will seek “co-ordination” from the states on their climate and energy policies, although he did not say whether he would be insisting that individual states abandon their own targets. (Three states – South Australia, Victoria and Queensland – and one territory, the ACT, have renewable targets that are more ambitious and longer lasting than the federal target, which is equivalent to a 23.5 per cent target by 2020). In a response that will disappoint many in the climate policy arena, Frydenberg insisted that next year’s climate policy review will be a “sit-rep” – a situation report that will assess the ability of current policies to meet existing targets – and will not look at longer-dated targets (such a zero emissions by 2050), or as an opportunity to set more ambitious targets. He says the price of gas is the key component of future electricity prices, and he will be bringing “many” of the recommendations by the ACCC and the AEMC to the COAG energy ministers meeting next week. He said he was monitoring the progress of solar thermal with storage plants, such as the new $1 billion plant in Nevada, although he did not mention any specific policy or initiative to bring the technology to Australia. The tone of the interview – which you can read in full here – was one of caution. Frydenberg shows no sign of deviating from Coalition policies, even if he does recognise that a lot of effort needs to be thrown at climate and clean energy policies to avoid an economic and political train crash. Read More here