Time for energy realism

The Australian Institute for Progress has warned against the intention, outlined by the Energy Minister in today's Courier Mail, to implement strict deadlines for the retirement of coal-fired power stations in Queensland.

Executive Director Graham Young said the renewable energy transition has to be primarily governed by economics, cost and reliability. Strict deadlines are the enemy of all three.

“Strict deadlines cause inflation, disappointment and disillusion. Attempts to meet them push up prices, so deadlines inevitably need to be pushed back, leading to disillusion and the discrediting of the whole process, while the product is unlikely to meet the needs of either industry or society.

“They also push gas into the role of keeping the lights on, which will add to the cost problems, as well as requiring a lift in East Coast gas production.”

Mr Young said that it is important that all electricity used on the grid be firmed, which means storage and distribution networks have to come before generation.

“Firming can’t come from batteries to any great degree as they are too expensive, so it has to be supplied from pumped hydro.

“Queensland currently has miniscule pumped hydro compared to demand. Based on the timelines for pumped hydro projects like Snowy 2.0 and Kidston, this situation is not likely to change until sometime after the Olympic Games.”

Mr Young hoped that the government was not nominating dates so as to avoid an argument with the renewable zealots.

"We agree with former UK PM Tony Blair, an early adopter of the need for an energy transition, when he wrote earlier this year:

…because of the levels of growth and development, present policy solutions are inadequate and, worse, are distorting the debate into a quest for a climate platform that is unrealistic and therefore unworkable.

So, the movement now needs a public mandate, attainable only through a shift from protest to pragmatic policy. Too often, political leaders fear saying what many know to be true: the current approach isn’t working. But they mustn’t be silent – there’s a new coalition to build; one that unites disillusioned activists with technologists and policymakers ready to act.

"We urge the new Queensland government, which lists transparency as one of its values, to be up for the conversation."

For further information contact Graham Young graham.young@aip.asn.au 0411 104 801