Coalition claims Labor’s energy plan will cost five times more than estimated
The federal opposition has released a cost estimate of the Labor party’s energy plan, claiming it is hundreds of billions more than the government has disclosed.
The Coalition engaged Frontier Economics to independently assess and compare the cost of Labor’s “renewables-only” plan with an alternative plan that includes nuclear energy.
Opposition leader Peter Dutton said Labor’s energy plan has been exposed as costing five times more than what Labor had claimed.
‘Hidden costs’
“Australians deserve to know the truth behind Labor’s hidden costs and the impact they will have on energy bills and the economy,” Mr Dutton said.
“For years, Labor has cited a $122 billion price tag for its plan to achieve a net-zero National Electricity Market by 2050.”
“The truth, however, is that Labor’s ‘renewables-only’ strategy will actually cost Australians at least $642b.”
Taxpayer burden
Coalition energy spokesperson Ted O’Brien said the new estimates – based on the Australian Energy Market Operator’s preferred Step Change scenario – represent the true cost of utility-scale generation, storage and transmission, arguing that this burden will ultimately fall on taxpayers and households.
“With Frontier Economics now confirming the skyrocketing costs of Labor’s plan, this situation is set to worsen,” he added.
“Australians are facing higher bills, growing debt and an energy system at risk of instability.”
Risky path
Mr Dutton and Mr O’Brien said the government’s “renewables-only” policy is a high-risk, high-cost path.
“Australia faces a critical choice: Labor’s costly ‘renewables-only’ agenda or the Coalition’s affordable, balanced energy mix to achieve a net-zero electricity grid by 2050,” they said.
The opposition claims the government’s analysis fails to account for critical expenses.
“Frontier Economics uncovered an additional $62b in unanticipated transmission costs, revealing the vast underestimation in Labor’s estimates,” Mr Dutton said.
“Labor has quietly imposed a shadow carbon price – the Value of Emissions Reduction (VER) – driving up costs for consumers.”
“Starting at $70 per tonne, the VER will rise to $420/t by 2050, a hidden tax impacting every household.”
Overstated demand
Mr Dutton claimed Labor’s plan overestimates demand, leading to unnecessary, costly overbuilds, accusing the government of setting unrealistic targets for electric vehicle uptake and green hydrogen.
He also took aim at the government’s renewables policies, suggesting they are prompting governments and the private sector to over-capitalise on building out a new grid and arguing that everyday Australians will pay the price.
“Projects like VNI West, Humelink and the Gladstone Grid have seen major cost blowouts, marking a stark warning about the escalating costs of Labor’s ‘renewables-only’ agenda,” he said.
‘Extend and pretend’
Labor has promised to shut down 90% of coal-fired power by 2034, yet coal plant owners say 10.8 gigawatts of the coal Labor claims will be gone will still be operating.
“This exposes Labor’s tricky ‘extend and pretend’ strategy, where it extends coal in the real world but pretends it’s closing coal to keep the Greens happy,” Mr Dutton said.
With the “real cost” of Labor’s plan now revealed, Mr Dutton said that the Coalition plans to finalise and release costings for an alternative plan including nuclear energy by the end of the year.