The Editorial Board of the Australian writes, the gov't of Australia is mishandling the transformation of the nation's energy economy while hastening the demise of its sources of prosperity. If the trend continues, taxpayers will face heavy burden and future gov'ts some very heavy decisions indeed.
Evidence now abounds that meeting legislated emissions reduction target of 43% from 2005 levels by 2030 is going to be more difficult and expensive than voters were led to believe. That evidence includes a collapse in actual investment in renewable energy projects. The fall is in inverse proportion to the urgency of the investment required.
Capital projects necessary to underpin large-scale renewable energy developments are proving to be late and over budget. This includes the ill-fated Snowy 2.0 pumped-hydro scheme, the proposed second interconnector to Tasmania and the thousands of kilometres of high-voltage transmission lines required to join it all up.
Electricity users are alarmed at the continuing rise in bills. Community anger is growing at the intrusion of industrial developments into ural and high-value environmental areas. Now Tanya Plibersek has vetoed the linchpin of Victoria's offshore wind strategy over "clearly unacceptable" risk to local wetlands.
The energy plan centres on a terminal at the Port of Hastings where wind turbines will be assembled and sent to an array of offshore energy farms. With the cost of those wind farms already under a cloud, there has been a pledge Chris Bowen to guarantee their profitability.
The whole scheme is now less likely because gov't finally impact is impossible to justify. The gov't has a target of 95% renewable energy by 2035, much of which was to be underpinned by offshore wind. Victoria's plans were also key to the Australian gov't reaching its target of 82% renewables by 2030. The only part of the plan on track is the rush to close down the fossil fuel assets supplying the states, and the nation's, power.
Another troubling trend is the drop-off in investment in new fossil-fuel reserves. Investment in new projects has stalled and investment was going to other places including Canada, the US and Asia. There's now a very real threat being posed to future investment, with clear warnings from Australia's closest trading partners and biggest resource investors about Australia's trustworthiness as a future supplier of energy. Without corrective action it is possible they will seek to diversify their lines of supply.
Big projects have long tỉmelines, include big risks, and are difficult to turn around. These difficulties are being learned in real time by the dreamers at in the Australian gov't as they attempt to navigate a transition to a lower-emissions power sector and economy. The real lesson is for gov't to get its own house in order while doing everything possible to let the world know Australia's energy economy remains open for business.