States and territories revolt over federal government's coal power subsidy plan

The federal government is facing a revolt from states and territories over its plan to allow subsidies for coal and gas-fired power stations as part of reforms to shore up reliability of the electricity grid. Key points: The federal government wants coal and gas-fired power stations to be eligible for electricity reliability subsidies States and territories are objecting, concerned it will prolong the life of polluting power generators The ACT and Victoria will lead the push against Energy Minister Angus Taylor's plan at a meeting of energy ministers today Victoria "will not support" the plan it dubs "CoalKeeper," and the ACT will "adamantly oppose" it at a meeting of federal, state and territory energy ministers being held today. That spare capacity could come from renewable resources like batteries, pumped hydro, and demand management, but the federal government wants it to also include unused capacity in coal and gas-fired power plants. Victoria is likely to back the ACT's proposed changes for new storage capacity rather than support for existing coal-fired power plants, with Energy Minister Lily D'Ambrosio saying the current proposal is driving down investor confidence. In a letter to ACT Energy Minister Shane Rattenbury, Angus Taylor criticised the territory's rapid adoption of renewable energy and urged Mr Rattenbury to "consider the advice of the independent Energy Security Board".