Fresh from managing a power price spike and the market suspension crisis, the federal energy minister is set to address the National Press Club.
Chris Bowen is expected to spruik the government's plan to transform Australia's energy market using renewables, new technology and increased storage capability during his speech on Wednesday.
Within weeks of being sworn in as minister, Mr Bowen faced a perfect storm of coal-fired power station shutdowns, a cold snap and spiking gas prices.
The federal energy regulator suspended the energy market for a week, amid complaints the market-based system was broken.
International pressures like the war in Ukraine sent shockwaves through global energy markets, but Labor pointed the finger at the former coalition government for Australia's energy shortfall.
The new government says a decade of underinvestment in renewables led to the recent failures in the grid.
But while the short-term crisis has eased, the energy minister faces a challenge to sell Labor government's long-term energy plan while keeping electricity on and prices down.
The contentious capacity mechanism proposal, which Mr Bowen is spruiking as a safety net during Australia's transition to renewables, is expected to be discussed.
Under the mechanism, to be introduced from 2025, the government would pay electricity providers to have standby power available to meet demand.
The body set up to design the mechanism says all current power generators, including coal and gas, should be included.
The proposal has been criticised by industry groups for not addressing the existing issues in the energy market and potentially delaying the transition to a system with lower emissions.
Australian Associated Press
