Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Hansard source

I thank Senator Duniam for his question and the commitment he places on the importance of reliable, affordable energy in Australia. The electricity guarantee that the Turnbull government has announced today, comprising a reliability guarantee and an emissions guarantee, will deliver the type of reliable, affordable energy Australia needs for the future. We know that households and businesses need to know that, when they flick the switch, the power will come through, the lights will go on and the doors of the business can be opened. The advice to government on the problem is clear. The independent security board has made it very clear that 'there is currently insufficient incentive to drive investment in new, flexible, dispatchable resources and maintain existing such resources'. They've defined the problem.

They have also identified the solution in recommending the development of an obligation on retailers to meet a percentage of their load requirements with flexible and dispatchable resources. They've said that is resources that can be scheduled by the market operator, depending on the real-time operating needs of the system. That's the key phrase here: the real-time operating needs of the system. What does the energy market need at a given point in time to ensure that, when any household or business goes to turn on its electricity, the power is coming through, and coming through at the most affordable rate? The reliability guarantee will ensure that across Australia that certainty is delivered to Australian households and businesses in the future.

Our government knows the Australian economy cannot function without reliable energy. If those opposite cared about keeping the lights on, if they cared about the reliability of our energy, they would sit down with the experts, as the Turnbull government has, they would listen to the experts and they would work cooperatively on the implementation of this policy, which can give the guarantee Australia needs that our energy will be reliable and affordable in the future.