Parliament to debate $1bn energy fund

Paul Osborne
·1-min read

Energy Minister Angus Taylor says Labor will be voting against lower emissions if it opposes a $1 billion fund to be debated in parliament on Wednesday.

The Grid Reliability Fund will add $1 billion to the existing Clean Energy Finance Corporation allocation for investing in new energy generation, storage and transmission projects.

The type of support will range from debt and equity investment to concessional finance.

Labor and environmental groups have argued the laws are flawed as funding could flow through to gas and coal projects.

Mr Taylor said the fund would ensure renewables are integrated into the system and backed up.

"If Labor oppose the bill as they have said they would, they will be voting against lower emissions, a more reliable and secure energy market and lower prices for consumers," he said.

Meanwhile, the Climate Action Tracker report by international climate science and policy institute Climate Analytics says gas needs to be phased out globally by the 2040s to meet the Paris Agreement.

It projects the amount of gas for power generation to drop from about 20 per cent to three per cent by 2030, to one per cent in 2035, and to be gone by 2040.

"There is no need for any increase in gas for power generation due to the increasing cost-efficacy of battery storage, pumped hydro, demand-side management and the integration of hydrogen and electric vehicle storage systems into the grid," the report says.

"Coal-fired power can be phased out by 2030 in a planned and regulated process to enable a just transition - using renewables and advanced storage - without gas."