The Australian Government has released an Energy Green Paper, which sets a framework for the development of a coherent and comprehensive blueprint that will allow Australia to take full advantage of its natural strengths.
Minister for Industry, Ian Macfarlane said Australia needs to consolidate its position as an energy superpower.
Speaking in Melbourne earlier today, Macfarlane said the Government’s focus is to enhance competition, innovation and productivity in the energy sector.
“Australia has world-class energy resources, and we must ensure that we have the right policy framework to use them to our full advantage, in an increasingly competitive global market,” Macfarlane said.
“The Government is resetting Industry policy in Australia to build on our areas of competitive strength. The energy sector is one of those strengths and the Energy Green Paper will identify the ways in which we can improve the framework surrounding our energy assets.
“Australia has an abundance of energy resources and energy assets. We are well regarded internationally for our diverse range of energy sources and we are supplying increasing volumes of energy commodities to energy-hungry nations in the Asian region."
Macfarlane said Australia cannot afford to become complacent. He said Australia must also be the world’s best in how to access and utilise its energy resources.
The Green Paper is built around four key themes - attracting energy resources investment, electricity prices, building gas supply and improving market operation and security, innovation and energy productivity," Macfarlane said.
“Whether it’s through world firsts in floating LNG technology, ensuring flexible, transparent domestic energy markets or connecting the Australian energy market in the most sophisticated way that adds value to our economy, the Government’s focus is on maximising our competitive edge and natural strengths.
“This includes addressing questions about how to ensure Australia’s vast gas reserves are accessed to the benefit of local industry, consumers and export markets," he said.
“It also means ensuring Australia has access to the sophisticated and technologically skilled workforce to maximise our opportunities and it means having the information available to empower consumers with competition and choice to minimise their electricity costs."
Australia has already repealed the carbon tax, the mining tax and streamlined regulation, Macfarlane said. " The development of the Energy Green Paper, followed by the White Paper, will continue policy reform that is focussed on ensuring our energy sector has the scope to expand," he said.
“The Australian energy market has undergone significant transformation in recent years as a result of declining demand and changing patterns of consumption. The Green Paper will also take this into account in outlining a framework for policies that ensure a balance of reliability and affordability, as well as the best energy mix," the Minister said.
The Green Paper also considers questions about privatisation of State and Territory owned energy assets, as well as the challenges for ensuring sufficient gas supply, especially in NSW, and is open to consideration of all energy resources and technologies.
Australian Chamber of Commerce and Industry chief executive Kate Carnell welcomed the Green Paper and said energy reform should be a national priority.
Carnell said the ACCI also supports move to privatise Australia's energy market which will lead to greater competition and efficiencies.
Submissions to the Green Paper will close on November 4, 2014.
The Green Paper and details on how to make a submission are available on the Department of Industry’s website at www.ewp.industry.gov.au.