Briefing Note | February 2021

Underwriting New Generation (UNGI)

Key Points

The Underwriting New Generation Investment (UNGI) program is a federal government initiative to support new investment and greater competition in dispatchable or “firm” (i.e. available anytime) power generation. 
Based on a recommendation by the ACCC made in 2018, the program was originally intended to address a market failure that meant new cost-effective generation projects were not going ahead because financiers required more certainty on future revenues than potential buyers of the power were prepared to offer. 
UNGI was announced in late 2018 and received 66 proposals submitted under the scheme in March 2019.
12 projects spread across all NEM states were shortlisted – a mix of gas, pumped hydro storage and coal upgrade projects.  No projects were shortlisted from the three major energy companies AGL, Origin or EnergyAustralia.
On 23 December 2019 two separate gas generation projects in Queensland and Victoria were announced as having reached support terms under the UNGI program. Neither project has commenced works.
In May 2020 Federal Independent MP Zali Steggall requested the Auditor-General conduct an audit of the program.

You are unauthorized to view this page.