What the budget means for energy

The Federal Government has allocated almost $2.5 billion to the energy industry in the 2020-21 budget; with the gas sector flagged to play a pivotal role in Australia’s economic recovery from the COVID-19 pandemic.

Specific initiatives announced for the energy industry for the 2020-21 period include: » Up to $250 million to accelerate major transmission projects such as Marinus Link, Project EnergyConnect and VNI

West to the next stage. Together with existing support for HumeLink and the QNI Interconnector, this means all priority transmission projects are being accelerated, creating thousands of new jobs, putting downward pressure on prices and shoring up the reliability of the grid. » A $53.6 million microgrid program to support the development of pilot projects in regional Australia, building on the success of the current Regional and Remote Communities Reliability

Fund. This will help deliver more affordable reliable power in regional communities across Australia. » Helping connect the North West Minerals Province (NWMP) near Mount Isa to the NEM through further support for the CopperString high voltage transmission line. This will allow major users in the NWMP to access reliable and more affordable energy supply, and encourage further investment in mining and processing in the region. » $28.5 million to deliver cheap and reliable energy to Western

Australians through the South West Interconnected System

Big Battery project and a WA-based microgrids program for remote and indigenous communities. » $52.2 million to improve energy efficiency, lower bills and deliver abatement, including $24 million to fund building upgrades and reduce energy costs for community groups and for small and medium hotels. » $4.9 million over two years to improve cyber security in the energy sector and prepare government and industry for future threats. storage facilities and progressing reforms to boost the resilience of fuel supply and support local refineries.

Gas is set to play a huge role in the Federal Government’s economic recovery plans, with the announcement of an inaugural National Gas Infrastructure Plan (NGIP) to identify priority infrastructure projects, and options to boost the Wallumbilla Hub into a more transparent Australian Gas Hub, like the Henry Hub in the United States.

On top of the $42 million of investments to unlock supply, $10.9 million will be invested to strengthen gas infrastructure planning and deliver market reform to lower the price of gas for households and manufacturers.

The Federal Opposition responded to the Budget’s energy initiatives by outlining its own plan to invest $20 billion in rewiring the electricity grid, to allow Australia to adapt to changing energy markets and become a renewable superpower.

If elected, Labor would rewire the nation to drive down power prices, giving the economy a boost of up to $40 billion and creating thousands of new jobs – particularly in regional areas.

Australia should be a renewable energy superpower, according to the Labor Party, but the country’s electricity transmission system is “desperately outdated”. They argued that Australia’s transmission system doesn’t properly integrate the full capacity of the growing renewables sector, let alone unlock its potential.

Federal Labor Leader, Anthony Albanese, said, “Australia’s electricity network was designed for a different century, and transmission systems themselves are operated by monopoly providers who keep taking households and businesses for a ride.”

By establishing the Rewiring the Nation Corporation (RNC) and keeping it in public hands as a government-owned entity, Labor said it will ensure the grid is rebuilt at the best price possible.

The RNC would partner with industry and provide low cost finance to build the Integrated System Plan. The end result is expected to be cheaper electricity prices for homes and businesses.

Labor said it would ensure Australia’s modern energy grid would be built by Australian workers using Australian suppliers by mandating local supply and local labour.