For example, the Federal Government’s announcement of a new National Clean Energy Target (CET), which provides for a single national low emissions energy target of 30,000 gigawatt hours of low-emissions energy generation by 2020, does not provide encouragement for the use of natural gas.
The scheme is also expected to provide additional investment incentives for emerging renewable and low emissions energy generation technologies. This is clearly an appeal to the electorate as renewable energy sources have more resonance with voters than would a scheme that encourages the use of natural gas – a fossil fuel (even though it is a fossil fuel that emits far less CO2 than does coal).
But, natural gas does not need government assistance. Natural gas merely needs appropriate policies; policies that do not discourage its use.
Even with government (i.e. taxpayers’) assistance, the technology that would make renewable energy sources viable is still being developed. Renewable energy sources for baseload power are many years from reality.
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The Minister for the Environment, the Hon Malcolm Turnbull MP, has stated that only electricity generators using technologies that emit less than 200 kilograms of greenhouse gases per megawatt hour of electricity supplied will be eligible to participate in the CET scheme.
This means that current natural gas technologies such as combined-cycle gas turbines are not covered in the CET scheme despite creating about half the greenhouse gas emissions of an equivalent coal-fired power station (around 345 kg of CO2 per megawatt hour).
This is proven technology and it is available now, but it is being sidelined in the debate about and policies for clean energy generation.
While the CET, intended to replace existing and proposed state and territory schemes, is a welcome acknowledgement of the challenges facing the energy industry dealing with a multitude of state regulations, it is important not to lose sight of the gains already made.
Major energy players are already making moves towards gas-fired power generation, with a view to cutting greenhouse gas emissions.
Natural gas, is a “natural choice” as a transition fuel and will be part of Australia’s energy generation future as it has lower greenhouse gas emissions and uses less water in energy generation than does coal and it is less expensive than renewable energy.
But Government policies should not discourage the use of natural gas.
Government needs to ensure that it does not become involved in “picking winners”. A renewable energy target may not be required at all if an effective carbon emissions trading scheme is developed, allowing industry to move to the most efficient means of reducing greenhouse gas emissions.
Australia need a clear, nationwide emissions trading scheme to ensure certainty for industry investment and the best outcome for consumers.


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