Title translation: Towards the "National Energy Guarantee" - Current state of discussion on a new instrument of Australia's energy and climate policy
In Australia, the National Energy Guarantee (NEG) is currently being discussed as a new instrument of energy and climate policy. A dual supply obligation is intended to ensure both emission reduction and security of supply in the electricity sector. The newly established Energy Security Board (ESB) presented the proposal for the new instrument in October 2017 and has since been leading its development and implementation. The introduction of the National Energy Guarantee is subject to a unanimous decision by federal, state, and territorial governments within the Council of Australian Governments (COAG) Energy Council.
The report outlines the political context of the development of the National Energy Guarantee and discusses whether the debates of Australian energy and climate policy, which have become very polarised in recent years, can be resolved through the NEG. The authors also describe and discuss the ESB's proposals on the individual design elements of the two National Energy Guarantee instruments. In addition, the report provides the necessary background knowledge on the Australian electricity market and the existing instruments for reducing emissions in the electricity sector.