Australian families struggling to pay their energy bills are one step closer to saving $ 550 per year after the energy ministers reached a compromise on the National Energy Guarantee on Friday.
The policy promises cleaner, cheaper and more reliable energy and would see Australia's energy and climate policies for the first time.
It was launched by the Turnbull government in response to rising energy prices and widespread blackouts.
How it will work
Australia's current goal is to reduce emissions at the 2005 level by 26-28 percent by 2030.
The NEG would require retailers to sign contracts agreeing to supply a minimum amount of energy to meet the needs of the client and the system.
The electricity sold to consumers must have average emission levels that meet Australian emission reduction targets.
These objectives would be legislated, reviewed every five years and could be proposed by future governments, although states and territories can also have their own more ambitious commitments.
The objective is for a stable policy to encourage new investments in the energy network. This, in turn, would mean that the new supply entering the market would reduce the prices of wholesale energy.
Who will benefit?
The policy will cover Queensland, NSW, South Australia, ACT and Tasmania.
Neither Western Australia nor the Northern Territory will be affected by the plan because they are not part of the National Electricity Market under which the guarantee will operate.
However, its emissions will count towards the general total of Australia.
According to the Energy Security Board, the policy will reduce household energy bills, with $ 150 of the $ 550 savings that comes directly from the NEG.
How will the energy mix look?
The plan is technology neutral, which means there will be no subsidies for renewable energy or fossil fuels.
Renewable energies will represent 36 percent of the generation of the national energy market in 11 years, compared to the current 17 percent.
There will be no closing of coal stations but the The proportion of coal generation will decrease from 60 percent to 60 percent.
The energy ministers have backed the plans for now after a meeting in Sydney on Friday, with the CThe ballroom of the ovalition is ready to consider the policy in Canberra next Tuesday.
The states and territories will have the last word and, if approved, the plan will be submitted for public consultation.