Federalism will see disjointed Australia energy policy

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.