The Times Australia
The Times News

.
The Times Real Estate

.

Morrison signs up to the gas gospel, but the choir is not in tune

  • Written by The Conversation

If Labor were threatening to build a power station, the Liberals would likely be screaming “socialists”.

As for a Coalition government contemplating such a thing — well, to say the obvious, it hardly fits with the Liberals’ stated free market, private enterprise philosophy. But hey, neither does the hyper-Keynesian support package to cushion the economy through the pandemic.

Only a few within its own ranks would dispute the government’s COVID mega spending, whatever the ideological contradiction. And they’re keeping their voices to private whispers.

The gas power plant is another matter, and it will be fascinating to see how the debate plays out if the threat turns into reality.

Read more: Morrison government threatens to use Snowy Hydro to build gas generator, as it outlines 'gas-fired recovery' plan[1]

The threat is part of the go-with-gas policy unveiled by Scott Morrison this week, spruiked as driving a “gas-fired” recovery, especially for manufacturing. This sounds suspiciously like a three word slogan that promises more than it is likely to deliver.

But Morrison has signed up to the church of gas, whose pastors include Nev Power, chairman of the prime minister’s COVID-19 commission and Andrew Liveris, the head of its (now defunct) manufacturing taskforce, which delivered a pro-gas report. Morrison this week referenced his discussions with Liveris at Kirribilli House.

Much of the gas plan is broad and aspirational at this stage. But the threat is specific enough, and Morrison adopted a grim, school teacher tone when he delivered it in his speech at Newcastle unveiling the policy.

He said the electricity sector must lock in by April investments to deliver 1,000 megawatts of new dispatchable energy to replace the Liddell coal-fired power station before it closes in 2023. Or else. The government-owned Snowy Hydro was working on options, Morrison said.

Going back to Malcolm Turnbull’s time, the government conducted — and lost — a bitter battle with AGL over the planned Liddell closure. It exerted maximum pressure on the company to extend the life of the station, or alternatively, sell it, but to no avail.

The gas policy, especially the threat, hasn’t gone down well — with the energy sector or environmentalists. And it’s come under criticism from experts and even within Coalition ranks.

The Australian Energy Council, representing investors and generators, warned the spectre of a government gas generator could put off private investors.

Environmentalists are against gas anyway, whoever produces it, because it is a fossil fuel and therefore has emissions, albeit not as bad as coal.

The Nationals Matt Canavan, who not so long ago was resources minister, says if a new power station is to be built in the Hunter region it should be coal-fired.

And the director of the Grattan Institute’s energy program, Tony Wood, says the government’s claim that 1000 megawatts of new dispatchable capacity is needed isn’t supported by the advice from its own Liddell taskforce.

Read more: Politics with Michelle Grattan: Angus Taylor on the 'gas-fired' recovery[2]

More generally, Wood argues the idea of a gas–led recovery “is a mirage”.

He says east coast gas prices are unlikely to fall to very low levels and anyway, even very low prices would not stimulate major economic activity. “Investing in more gas infrastructure in the face of climate change looks more like a herd of stampeding white elephants,” is Wood’s blunt assessment.

“Gas is very likely to have a role for some time to balance solar and wind. This role will be important but diminishing in volume and the pace of change will be determined by the relative economics of gas versus storage technologies and hydrogen.”

Some see the government’s big takeup of gas as a way of walking away from coal, without fanfare. The government denies this, but it would fit with Morrison’s middle-course pragmatism.

That pragmatism is reflected in the week’s other major energy announcement, for $1.9 billion investment in new and emerging technologies to lower emissions.

Morrison explicitly spelled out the government’s view that renewables, notably solar and wind, have boomed commercially and can take care of themselves.

The policy looks both backwards and forwards.

Backwards, with its support for carbon capture and storage (CCS) which — leaving aside its problems as a technology — is an encouragement to fossil fuels.

Forwards, by extending support to a wide range of technologies of the future.

Critics don’t like the proposed expansion of the remit of the Australian Renewable Energy Agency (ARENA) and the Clean Energy Finance Corporation (CEFC) beyond supporting renewables.

If the government can get the legislation through the Senate, these bodies would be able to back a wide range of projects, including CCS.

The government is also clinging to its Emissions Reduction Fund, which has had trouble attracting proposals. It plans to reform the fund’s processes.

Taken as a whole and leaving aside the arguments about their efficacy, this week’s decisions have a clear political element. They are relatively risk averse within the Coalition, the threatened power plant notwithstanding.

Energy has been such a fraught area for the government that Morrison is very aware of juggling the conflicting forces within his ranks.

Read more: Government targets emerging technologies with $1.9 billion, saying renewables can stand on own feet[3]

The internal coal lobby, spearheaded by Canavan but wider than him, will continue to mutter. The crunch will come when the government’s feasibility study for a Queensland coal-fired power station is finished. But putting gas at the centre of the picture will reassure some in the Coalition who remain deeply suspicious of renewables.

The Liberals in seats where climate change is a big preoccupation may or may not find enough to sell in this week’s packages. They can emphasise the “transition” nature of gas — Morrison described it as “a stable transition fuel” — and talk up the support for emerging technologies.

But they will confront the counter argument that the government is not doing enough or proceeding fast enough on climate change.

Meanwhile, Labor struggles with its own energy and climate policies, which caused it such problems last election, when it had dual or confusing messaging in the country’s south and north and lacked costings.

Post election, the spectrum of Labor thinking on these issues has been exposed, and resources spokesman Joel Fitzgibbon, who takes many of his cues from his NSW coal seat of Hunter, frequently speaks out.

Like Morrison, on energy and climate policy Anthony Albanese will be seeking to position himself somewhere in the middle ground for the election. He’ll look to being to the left of the PM — but not way out on a limb.

Read more https://theconversation.com/grattan-on-friday-morrison-signs-up-to-the-gas-gospel-but-the-choir-is-not-in-tune-146405

The Times Features

Why You Need an Expert Electrician for Your Business’s Electrical Upgrades and Repairs

When it comes to maintaining and upgrading your business’s electrical systems, it’s essential to call in a professional. Electrical work in any commercial setting requires the ex...

Why Is It Crucial to Have a Building Inspection Done Before Buying a New Home?

Purchasing a new property is a big financial decision that can impact your future for years. Whether you are a first-time buyer or an investor, good or bad, it is essential to en...

Online Application for Sick Leave Certificate: Understanding When and How to Secure One

A sick leave certificate is an official document issued by a healthcare professional to verify an individual's inability to attend work due to illness. It typically includes the ...

A No-Fuss Guide to an Effective Beauty Routine

Taking care of the skin and appearance need not be complicated; it need not even consume your hours of time. Smart and simple approaches can give one that glow and fresh look witho...

Safe & Effective Tattoo Removal in Auckland – What You Need to Know

If you're looking for tattoo removal in Auckland, modern laser technology offers the safest and most effective way to fade or completely remove unwanted ink. Whether it's an outd...

Fleece-Lined Tights vs. Regular Tights: What’s the Difference?

When temperatures drop, choosing the right pair of tights can make a significant difference in comfort, warmth, and durability. Whether you wear tights for fashion, work, or outdoo...

Times Magazine

The Ultimate Guide to Apple Watch Faces & Trending Wallpapers

In today’s digital world, personalization is everything. Your smartwatch isn’t just a timepiece—it’s an extension of your style. Thanks to innovative third-party developers, customizing your Apple Watch has reached new heights with stunning designs...

The Power of Digital Signage in Modern Marketing

In a fast-paced digital world, businesses must find innovative ways to capture consumer attention. Digital signage has emerged as a powerful solution, offering dynamic and engaging content that attracts and retains customers. From retail stores to ...

Why Cloud Computing Is the Future of IT Infrastructure for Enterprises

Globally, cloud computing is changing the way business organizations manage their IT infrastructure. It offers cheap, flexible and scalable solutions. Cloud technologies are applied in organizations to facilitate procedures and optimize operation...

First Nations Writers Festival

The First Nations Writers Festival (FNWF) is back for its highly anticipated 2025 edition, continuing its mission to celebrate the voices, cultures and traditions of First Nations communities through literature, art and storytelling. Set to take ...

Improving Website Performance with a Cloud VPS

Websites represent the new mantra of success. One slow website may make escape for visitors along with income too. Therefore it's an extra offer to businesses seeking better performance with more scalability and, thus represents an added attracti...

Why You Should Choose Digital Printing for Your Next Project

In the rapidly evolving world of print media, digital printing has emerged as a cornerstone technology that revolutionises how businesses and creative professionals produce printed materials. Offering unparalleled flexibility, speed, and quality, d...

LayBy Shopping