Govt power plan may be unconstitutional

One of the Morrison government's remaining energy policy planks could be unconstitutional because of the way it's funded, new legal advice suggests.

Progressive think tank The Australia Institute commissioned the advice from Fiona McLeod SC and Lindy Barrett, who represented the Commonwealth in the royal commission into child abuse, to examine the government's plan to underwrite new investments in energy generation.

The legal opinion says the government either needs new legislation to underpin spending money on the program or to funnel the cash via the Clean Energy Finance Corporation, which cannot finance gas or coal projects.