Power prices surge as coal and clean energy supply falters
This challenges the energy policy of Peter Dutton’s opposition, which has unveiled a “coal-to-nuclear” plan that would see the energy grid heavily dependent on coal power until seven nuclear plants are completed, claiming it can be done by the mid-2040s.
“Both black and brown coal availability decreased significantly compared to Q4 2023,” AEMO said, noting that one of the four units at Victoria’s Loy Yang A plant was out for nearly the entire quarter, and NSW’s coal fleet availability was down by more than 8 per cent.
AEMO’s findings were released the day after Nationals leader David Littleproud sparked confusion over the Coalition’s nuclear policy, when he told Sky News on Wednesday morning: “We’ll start building the first nuclear power plant the very first day after a Coalition government’s elected”. However, he conceded later in the day that “there is a process where technical assessments would take place” before any plants are built.
It’s unclear how the Coalition would proceed with building, given state and federal governments have banned nuclear generation. Littleproud’s claim also contradicts the Coalition’s policy, which states it will conduct feasibility studies and community consultation for 2½ years before it commences building.
Energy Minister Chris Bowen said AEMO’s data showed the need to press ahead with the renewable rollout to reduce reliance on “unreliable coal”.
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“Peter Dutton’s plan is to scrap transmission investment and extend unreliable coal generation for decades, so he can build the most expensive form of power available, nuclear. That’s the worst thing possible for energy bills, reliability and the environment,” Bowen said.
Opposition energy spokesman Ted O’Brien said the government’s energy policy was failing by contributing to higher prices.
“Labor’s ideological war on coal and gas has weakened the grid, and as a result Australians are paying more for less reliable energy,” O’Brien said.
Grattan Institute energy and climate change deputy program director Alison Reeve said the government should never have promised to cut power bills, which are a product of market forces that are out of its control.
“The best time to renege on that promise was probably in June of 2022,” Reeve said.
“Any politician who promises that they can give you cheaper electricity, particularly when they put a number on it – that is a foolish thing to do, because they don’t run the market.”
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