Dear *|FNAME|*,
Sixty-one pieces of legislation in 6 months is a cracking pace for a new government. The last hurdle was the Energy Price Relief Bill which included a cap on gas and coal along with targeted assistance for vulnerable Australians and eligible businesses. This action was urgent given the effect of energy costs on the cost of living and its existential impact on industry and business. A cap of $12 per gigajoule on gas recommended by the ACCC, aligns with the fact that in 2021, 96% of Australian gas sold for less than $12. The States and Territories have agreed to a price cap of $125 on coal and the Federal Government is kicking in $1.5 billion in targeted relief for eligible households and small businesses. Overseeing all of this will be a mandatory code enforced by the ACCC, which will include better transparency, binding arbitration and strong penalties. This level of intervention is extraordinary but extraordinary times, demand extraordinary measures.
Concerns that that these measures will slow our transition to renewable energy are unfounded. On the contrary, the war in Ukraine has only reinforced the need to reduce our dependency on fossil fuels. It was then heartening to see our energy ministers at State, Territory and Federal level reach consensus on how we improve energy reliability while staying green. If there was ever evidence that the Climate wars are dead and buried, this was it - all ministers singing in unison. The Capacity Investment Scheme announced on 8 December will help keep the lights on with renewable energy, whatever the global conditions. This new revenue underwriting mechanism will unlock around $10 billion of investment in clean energy, encouraging the right mix of storage and renewable technology. The CIS will help de-risk projects and spur more investment. The Smart Energy Council said, “This is a plan that will take us to 82% renewables and beyond”. It means that our back up power will not come from coal but from the sun or wind or other green sources.
On 19 December, Australia’s first Offshore Wind Zone in Gippsland was announced by Chris Bowen. The windy Bass Strait off Gippsland with its strong grid connections means that this area has the potential to support more than 10GW of year - round energy generation creating thousands of jobs in development and operations. This announcement complements the Victorian State government’s target of 2GW offshore generation by 2032 to help achieve its target of 95% renewable energy by 2035. These kinds of large-scale projects will help boost Aussie manufacturing. Why? Because cheap energy underpins energy hungry manufacturing. The energy transition is vital to a future made in Australia. Community consultation is ongoing.
Modernising our economy will demand people with skills. At a time when young people are pondering their future having finished school, I say do not overlook the opportunities afforded by TAFE. The Albanese Government has just signed an agreement to support more than 55,000 fee-free TAFE and VET spots in 2023. We need people in the care economy, health, education, IT, cyber, construction, agriculture, hospitality and manufacturing. From this smorgasbord there is sure to be something that piques your interest - everyone has a role in that better future we are shaping.
Finally, I hope you all have some downtime with loved ones. Merry Christmas everyone and blessings for the New Year. Big things await us all next year…
Sincerely,
|