Low likelihood of new fossil-fuel baseload generation being constructed
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It was unanimously agreed that there is a low likelihood of new fossil-fuel baseload electricity generation plants being constructed. This is because fossil fuels are increasingly not cost-competitive for baseload generation due to high fuel costs and rising prices under the ETS.
Submitters believed a ban would have limited or no impact and would be unnecessarily costly.
A submitter identified that “legislating is not a costless option. In addition to Parliamentary and departmental costs, any legislation could risk unintended consequences.”
Further, under the ETS if a new baseload fossil fuel generation plant were constructed it would be viable even with carbon externality pricing, and progress towards net zero emissions through the fixed quantity cap under the ETS would remain on track regardless.
One submitter believed that a ban should be implemented despite the low likelihood that a fossil fuel baseload generation plant would be constructed to provide certainty that fossil fuels would continue to be phased out for baseload electricity generation.