The COAG Energy Council will progress design work and consult on the National Energy Guarantee (NEG).
The decision was made at the COAG Energy Council meeting last Friday in Hobart, despite objection from South Australia and the ACT.
At the meeting, Energy Security Board chair Dr Kerry Schott AO presented the NEG and the accompanying modelling report.
“All jurisdictions voting on the guarantee supported progressing further extensive work on the design, including consultation in early 2018, except South Australia and the ACT,” the meeting communiqué reported.
“South Australia and the ACT asked COAG Energy Council to model the emissions intensity scheme and the clean energy target alongside the guarantee and council declined.”
Federal Energy Minister Josh Frydenberg said the NEG received “widespread support” from the industry.
“Agreement by the council is a significant and constructive step forward in delivering a more affordable and reliable energy system as we transition to a lower emissions future,” he said.
“As ESB modelling undertaken by Frontier Economics shows, wholesale electricity prices are forecast to drop by 23 per cent, while the savings to households will be in the order of $400 per year in the decade from 2020 to 2030 under the NEG and new generation.
“As a truly technology neutral policy, the guarantee will also drive the right investment and reduce emissions without subsidies, taxes or trading schemes.”
The Energy Security Board will further develop the design details of the NEG and report back to the COAG Energy Council by April 2018.