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Federal opposition government: “Build coal, gas and nuclear now!”

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By Colin Hay - 
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The federal opposition has declared that the Australian government’s renewable energy targets are failing.

Senator Matt Canavan says the Australian Energy Market Operator (AEMO) – the country’s energy regulator – has informed the Senate that the government’s renewable energy plans cannot guarantee lower power prices.

“Labor promised us that they would cut our power bills by $275, but instead we have got much higher electricity bills,” Senator Canavan declared on social media.

“Build coal, gas and nuclear now!”

Rising energy costs

The senator told Sky News that the average power bill had increased by more than $500 since the Labor government was elected, with many large families and large homes paying $1,000 or more in extra costs.

He said this outcome is the direct opposite of the government’s claims that its renewable energy policies would provide the “lowest-cost energy”.

“What their modelling does is start with the assumption that we’ll have to reach 82 per cent renewables by 2050 [and] look at the lowest cost way to get there,” Mr Canavan said.

“It doesn’t actually measure whether the 82 per cent renewables target or net zero emissions by 2050 is lower cost than, say, continuing to invest in a coal-fired power fleet.”

Coal phase-out

AEMO chief executive officer Daniel Westerman told a national conference earlier this week that Australia may be just ten years away from operating a power system without coal in the energy mix.

“Three years ago, I highlighted that Australia could see periods where enough renewable energy was available to meet 100% of demand as early as 2025,” he told the audience.

“At the time, the peak renewable contribution for a dispatch interval stood at 61% of generation in the National Electricity Market.”

“That’s climbing steadily year on year, with the latest record peak reaching 74% this spring.”

“Western Australia’s grid has a record peak of 84% renewable energy and South Australia regularly exceeds 90%.”

New energy age

Mr Westerman told the conference that, while there are still several issues to address regarding renewable energy reliability, Australia’s new energy age is coming rapidly.

“We’re on the cusp of an investment cycle in essential infrastructure—the likes of which have not been seen for decades,” he said.

“AEMO’s Integrated System Plan […] and government roadmaps like the National CER Roadmap help illuminate the path forward, supported by insights from AEMO’s other market and technical studies.”

“Collaboration across industry, governments, market bodies and the community is essential.”

“There will be headwinds and unexpected events in this rapid and complex transition but I am confident that, by working together, Australia can realise the opportunities of this energy transition with a laser-like focus on the interests of our most fundamental stakeholders: the families and businesses that depend on secure, reliable and affordable energy.”