Chris Bowen says states can decide how to provide backup energy generation but must meet 2030 target

The Energy Security Board recommends paying generators to keep extra capacity in the national grid to reduce the risk of blackouts

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The federal energy minister, Chris Bowen, says the states will be able to implement a new capacity mechanism in the national electricity market in ways appropriate for their needs as long as the arrangements are consistent with the Albanese government's 2030 emissions reduction target.

Amid soaring energy prices, blackout threats in five states and the suspension of the wholesale electricity market, the Energy Security Board (ESB) has recommended that coal and gas plants be paid to have generation capacity available as the grid transitions to low-emissions alternatives.