Power up: warning coalition policy will drive up prices
The coalition claims the new energy policy is affordable and responsible, but one expert warns abandoning climate targets will only increase costs.
After a damaging infighting, the coalition announced its policy on Sunday, promising to abandon its target of net zero emissions by 2050 if it wins the next election, while potentially pouring taxpayers’ money into new coal and gas projects.
Opposition Leader Sussan Ley said that she cares about the fight against climate change, but will prioritize reducing electricity and gas costs.
He said the coalition wanted to continue bringing renewables online but claimed the shift away from fossil fuels such as coal and gas was happening too quickly.
“We believe in affordable energy at the heart of our economy,” he told reporters on Monday.
Freeing up gas supplies was a key part of the policy, but Ms Ley left the door open to new coal-fired power plants as a baseload energy source to supplement renewables on the power grid.
The coalition government will also lift the national moratorium on nuclear energy and continue to invest in technology, including carbon capture and storage, solar uptake, biofuels and low-emission metals.
Joel Gilmore, an energy systems expert at Griffith University and a member of the Climate Council, said the proposed technologies would not reduce bills and new coal was “incredibly expensive”.
“There are big dreams that we can go back to the good old days, but just like you can’t buy sugar for a penny at the corner store, you can’t buy coal at rock-bottom prices,” he said.
“No longer available.”
Dr Gilmore said if renewable energy technology had not yet been built in, electricity prices would be 30 to 50 per cent higher than they currently are.
“Russia’s invasion of Ukraine has caused a huge increase in the cost of electricity, not renewable energy, over the last few years,” he said.
The cheapest form of energy is wind and solar power supported by storage, Dr Gilmore said, adding that nuclear power is an important technology only for countries that do not have the space or renewable resources.
“Australia has the best wind and solar resources. We must rely on our competitive advantage,” he said.
He added that giving up on net zero would also alienate investors.
“If we don’t have that policy certainty, investors will go elsewhere,” Dr Gilmore said.
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