What safeguards, if any, is the Minister considering to ensure imported LNG is used only for dry-year cover and does not displace investment in biomass or other firming options?

Answer

I am advised that LNG provides a transitional, system-level insurance mechanism to support the electricity system during periods of low renewable generation. The cost of LNG-fired generation means that most renewables will be preferred by the market, and as others hit scale of production and/or technology improves the market will select renewables over LNG. Providing fuel for firming will also support investment in renewable generation, as it will ensure there is a reliable back up available for developments to sell a firm electricity supply.