A new energy deal announced by the Australian Government on Friday is set to reduce CO2 emissions, sure up power security and cut consumer costs in the State of New South Wales (NSW), but not everyone is on board with the controversial new plan.
As part of the 2 billion Australian (1.34 billion U.S.) dollar deal, the NSW Government will look to "facilitate investment opportunities" in order to inject an additional 70 petajoules of LNG gas per year into the east coast market.
"I want households and businesses paying less for their electricity and I want to continue to get emissions down -- this deal does both," Prime Minister Scott Morrison said.
"There is no credible plan to lower emissions and keep electricity price down that does not involve the greater use of gas as an important transition fuel."
"This plan is about getting greater access to that gas, as a vital accompaniment to our record investment in renewables."
Handing over 960 million Australian (645 million U.S.) dollars to the state for "emissions reduction initiatives," the NSW Government will also commit a further 1 billion Australian (670,000 million U.S.) dollars to the initiative, which will include the joint underwriting of grid upgrades and the establishment of a pilot renewable energy zone in the Central West region where large-scale renewable generators will pump green power into the state's electricity supply.
"NSW already has a pipeline of around 26 billion Australian (17.45 billion U.S.) dollars of large scale renewable and non-renewable energy projects and the NSW Government has introduced a range of rebates to help keep prices down as well as a five-year 1.4 billion Australian (940,000 million U.S.) dollar Climate Change Fund," NSW Premier Gladys Berejiklian said.
"Our agreement with the Commonwealth today will ensure we continue to strengthen and diversify our energy sector here in NSW -- securing traditional energy sources whilst growing renewable energy investment across the state."
But with the deal also including the removal of barriers to coal supply for the Mount Piper Power Station and more investment in "coal innovation," environmental groups and climate experts are far from happy with the new arrangement.
"Fossil fuels are the problem. Burning coal, oil, and gas is driving climate change, which is making Australia's extremes, more extreme," Australian Climate Council CEO Amanda McKenzie said.
"Every dollar toward fossil fuel projects is a dollar toward making heatwaves worse and fires more damaging. It is just crazy, given everything we have lost this summer to even suggest opening new fossil fuel reserves."
"More gas isn't a climate policy it is a pollution policy. While fires are still threatening lives and properties - why is the Government investing in making the problem worse," she added.
Despite the criticism however, Morrison said he plans to establish similar deals with other Australian states in the near future.
Editor:Cherie
