On 15 September 2020, the Prime Minister, Scott Morrison, announced a series of measures aimed at preventing forecast shortfalls in dispatchable power and addressing price equity in the East Coast gas market.
The key drivers behind the Federal Government's new policies include a lack of private sector investment in energy production, the imbalance between domestic and export gas prices, and the potential for gas to aid in Australia's economic recovery.
Private sector investment in dispatchable energy has slowed since 2010 and the Prime Minister noted that current plans do not address an impending shortfall in dispatchable energy across the National Electricity Market (NEM). For example, since it was announced that the Liddell coal-fired power station would close in 2023, no new power stations have been committed from the private sector, with the closure itself estimated to increase grid electricity prices by 30% over two years.
