The head of one of Australia’s largest energy companies has warned that the country’s electricity prices could soar by more than 35% as it pushes for net zero.
Alinta Energy CEO Jeff Dimery said:
“Maybe regulators will change that rule, I don’t know,” he told the Australian Financial Review’s Energy and Climate Summit.
Dimery also said Russia’s aggression in Ukraine and Australia’s shift away from fossil fuels will contribute to skyrocketing costs.
“What took A$1 billion ($630 million) to buy costs A$8 billion ($5.04 billion) to replace, so let’s talk about it. [someone] Please explain why energy prices are still falling,” he said in a comment obtained by the Australian Broadcasting Corporation.
“I don’t understand. Am I missing something?”
The CEO also said the company plans to continue closing Victoria’s Loy Yang B coal-fired power plant, which produces 1,000 megawatts of electricity, and replace it with offshore wind and pumped storage.
Dimery nonetheless expressed concern about the burden on Australian residents.
“Looking at all the progress that has happened so far and what needs to happen between now and 2030 worries me,” he said.
“I worry about the $60 billion development needed in Queensland. [energy giant] AGL flagged. “
Australia faces ‘hard’ transition to renewable energy
Energy Australia CEO Mark Collette echoed his concerns, saying the country’s adoption of renewable energy over the past 20 years was well on its way, but “the next step will be difficult”.
The Australian Labor government has enacted a zero hard net target into law. This means energy providers will close coal-fired power plants and significantly increase investment in wind, solar, hydropower and storage batteries. Much has been said about hydrogen, but the technology is not mature enough for large-scale deployment.
By 2030 (less than eight years), Australia will need to cut emissions by 43% and power 82% of its grid with renewable energy. About 64% of our energy now comes from coal-fired power.
The government is also rolling out a series of new regulations to help Australia meet its targets and manage its electricity grid stably and without outages. This could encourage additional public service employment.
Meanwhile, the net-zero pressure is largely driven by the overprinting of currency by governments and central banks during the pandemic, as Australians, like many of their compatriots in the developed world, are experiencing record inflation. I’m here.
The war in Ukraine and supply chain shortages exacerbate these problems.
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Daniel Y. Teng is based in Sydney. His focus is on national politics such as federal politics, the COVID-19 response and Australia-China relations. Any tips? Please contact [email protected].