By Christine Chen
SYDNEY (Reuters) -Australia will hold an election on May 3, and energy security has become a key issue as voters face rising power bills and the prospect of gas shortages.
The stakes are high for households, manufacturers, energy producers and climate action, as Australia is the world’s No. 2 liquefied natural gas (LNG) exporter, with sales of A$69 billion ($44 billion) last year, and the highest polluting country per capita in the OECD.
Prime Minister Anthony Albanese’s ruling centre-left Labor party and the conservative Liberal-National coalition, led by Peter Dutton, have both pledged to keep prices down for households and boost domestic gas supply.
Both sides favour using gas to back up weather-dependent renewables. However, Labor is pushing for a majority-renewables grid, while the coalition wants to build a nuclear industry, currently banned in Australia, to help replace coal-fired power.
The Greens party, who are also expected to win seats and could become kingmakers if either of the two main parties fall short of forming a majority government, are opposed to nuclear energy and all new gas and oil production.
Here are the details of the energy and climate policies in play:
LABOR
Albanese’s key energy package aims to address living costs and the climate by committing A$2.3 billion to subsidise household batteries to store solar power. Labor has also pledged to extend energy bill relief for households and small businesses.
To help reach its target of 82% renewable generation by 2030, the party has announced an A$2 billion increase in clean energy technology funding through its green bank.
It wants to cut carbon emissions by 43% from 2005 levels by 2030 and achieve net-zero by 2050, replacing coal-fired power stations with wind and solar, backed up by gas, hydropower and energy storage.
The government last year released a long-term strategy that committed to gas as an energy source to 2050 and beyond. The strategy also assured trading partners that “Australia is, and will remain, a reliable trading partner for energy,” including LNG.
During his term, Albanese has intervened in the domestic gas market with emergency price caps and a code of conduct for producers.
LIBERAL-NATIONAL COALITION
Dutton has released a plan promising “Australian gas for Australians”, aiming to bring down gas and electricity costs. In a stark shift in policy, the coalition has proposed to require the country’s east coast LNG exporters – mainly Shell’s QCLNG and Australia Pacific LNG operated by ConocoPhillips – to sell a portion of their uncontracted gas into the domestic market, with fines for non-compliance.
LNG importers in Japan, which relies on Australia for about 40% of its supply, have expressed concerns about the proposed policies.
At the same time, the coalition has said it will support the gas industry by cutting “red and green tape” for new projects, including halving approval timeframes and fast-tracking a decision on extending the life of Woodside’s North West Shelf LNG plant.
It has also pledged to increase investment in gas power generation, pipeline and storage projects and “strategic basins” including the Beetaloo and Narrabri for eastern Australia.
To help replace coal-fired power, the coalition wants the government to build seven nuclear plants across the country. It says a first small reactor could be built by 2035 or a larger plant by 2037, with the rest by 2050.
Small modular reactors are not yet commercially available.
GREENS
The Greens party proposes phasing out fossil fuels by banning all new coal and gas projects, cancelling exploration permits and blocking expansions of current projects, including the North West Shelf LNG plant.
LNG export terminals would be transformed into hydrogen and ammonia hubs to free up domestic gas supply and support the transition to net-zero emissions, which the party wants to achieve by 2035 or sooner.
Households would be given grants and low-interest loans to disconnect from gas and install electric appliances.
The Greens have also been critical of the gas industry’s low tax payments and said they would close “loopholes” and hike levies for big corporations.
($1 = 1.5716 Australian dollars)
(Reporting by Christine Chen in Sydney; Editing by Sonali Paul)
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