The Underwriting New Generation Investment (UNGI) proposes to provide public financial support to new dispatchable electricity generation, with the stated goal of increasing competition in the electricity market. Support might be offered through loans, grants, guarantees or other mechanisms. It is unclear what support mechanisms will be used. The program was announced in 2018 but has not yet been finalised.
This briefing note outlines available information regarding UNGI. It finds:
- there is no constitutional or legislative authority
- there are no guidelines and criteria for assessment, and
- program development and implementation are following no clear process.
Despite these problems, the government has already shortlisted projects, made initial agreements and advanced detailed negotiations with proponents, and entered an MOU with the NSW government to support projects under UNGI.