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First deadline on energy guarantee looms

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April 11, 2018

Energy Minister Josh Frydenberg is spruiking the federal government's national energy guarantee.

Australia's energy minister is warning his right-wing coalition colleagues and those on the left of politics that ideology must be set aside if the country is to fix its power supply woes.

Josh Frydenberg will also warn calls for the federal government to take over privately held energy assets - notably by Tony Abbott - would cost come at a high cost of about $200 billion.

Mr Frydenberg will on Wednesday make the case for the Turnbull government's national energy guarantee, ahead of a meeting next week to agree on the details.

Energy policy is a cultural issue rather than an economic one and subject to ideological battles, the minister will say in a speech to the National Press Club.

"As politicians set their battle lines, it is consumers who are the casualties. This is the hard truth," he will say, according to speech extracts obtained by AAP.

"The answer lies neither in a war on coal nor the nationalisation of our energy assets."

Mr Frydenberg will make the case for policy certainty to support much-needed investment in new generation technology.

"Unless people are proposing the government renationalise the system and foot the $200 billion bill, the question is this: how do we establish a policy framework that manages the transition, achieves the objectives of lower prices, higher reliability and lower emissions, and provides constancy and consistency through political cycles," he will say.

Under the national energy guarantee, electricity generators will have to ensure a portion of the power output comes from reliable sources and a portion from low-emissions generators.

It aims to cut emissions across the electricity sector by 26 per cent to 28 per cent by 2030, in line with Australia's commitment under the Paris agreement.

The commonwealth wants the states to agree to the policy so work to implement it can begin next year.

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