Federalism will see disjointed Australia energy policy

Wednesday, June 14, 2017

Subject

Australian gas exports and energy policy.

Significance

A new energy strategy blueprint from Australia’s chief scientist, Alan Finkel, and record-high wholesale gas prices in eastern Australia have focused attention on energy policy, potential supply shortages and the impact of liquefied natural gas (LNG) exports on domestic gas pricing.

Impacts

  • Energy issues will squeeze the opposition Australian Labor Party (ALP) between its union base and potential Green voters.
  • Opportunistic state premiers will seek to link cross-state pipeline support to greater federal transfers.
  • Political uncertainty over climate issues will hold back private investment in power generation.
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