Coal-fired generation assistance

Purpose

The Australian Government has identified that a carbon price is likely to have significant implications for transforming the electricity generation sector. The Government has developed three measures to address energy security: the Energy Security Fund, Government loans and an Energy Security Council.

Under the Energy Security Fund, the Government is providing assistance over six years to highly emissions-intensive coal-fired generators to help them adjust to a carbon price:

• We are responsible for one element of the Energy Security Fund—providing assistance to highly emissions-intensive coal-fired generators in the form of 41.705 million free carbon units from 1 September 2013 and then annually until 2016–17.
• The Department of Climate Change and Energy Efficiency is responsible for another component—Energy Security Fund cash payments to assist highly emissions-intensive coal-fired generators. Cash payments were made in June 2012.
• The third element of the Energy Security Fund was the Contract for Closure program. On 5 September 2012 the Government announced it will not be offering financial support to close very highly emissions intensive power stations under the Contract for Closure program and has ceased negotiations with the electricity generators involved.

Eligible generation complexes

Applications for coal-fired generation assistance closed in May 2012. We have assessed the applications and issued Certificates of Eligibility for Coal-Fired Generation Assistance to eligible generation complexes under section 165 of the Clean Energy Act 2011.

Each certificate states the Annual Assistance Factor for the eligible generation complex. The Annual Assistance Factor is used to determine the portion of available free carbon units that will be issued to the generation complex.

Certificates of Eligibility for Coal-fired Generation Assistance

Receiving assistance

We will issue the first free carbon units to eligible generation complexes on 1 September 2013 (or the next working day) and then annually until 2016–17.

Before we issue free carbon units each year, eligible generators must comply with the conditions of the scheme. This includes lodging an annual Clean Energy Investment Plan with the Commonwealth Resources and Energy Minister and passing an annual Power System Reliability Test.

Timeline

Further information

If you have further questions, please email industryassistanceschemes@cleanenergyregulator.gov.au.

Related items

Jobs and Competitiveness Program

Energy Security Fund cash payments

Legislation and regulations

Frequently Asked Questions (FAQs)

Energy Security Council