YOU have to feel sympathy for Malcolm Turnbull.
He just can’t seem to kick a goal in his bid to fix Australia’s energy problems, as the right wing of the coalition is seemingly captured by coal interests, rather than looking at the policy framework needed to drive power prices down.
The Finkel report gave a good pragmatic balance that could have delivered a fix to what is quickly emerging as a national emergency.
But some politicians are more interested in ideological games than such a fix, to the detriment of the nation.
Some farm sectors are large users of electricity and will not thank politicians hung up on philosophical positions on coal if it stymies a reduction in electricity costs.
The dilemma comes after Tony Abbott promised, when prime minister, that getting rid of the carbon tax would massively reduce power prices.
Well, that didn’t happen, with prices nearly doubling since the tax was repealed.
Australia desperately needs reforms for our national electricity market, before it breaks farmers’ buying power – or the lights go out. There are three major problems worrying farmers.
First is the rapidly increasing cost of power, second, the reliability of supply and third, how Australia is going to meet its carbon emission targets now the Turnbull Government has signed the Paris agreement agreeing to reduce our carbon emissions.
The electricity generating sector is the biggest emitter of carbon.
Australia’s most recent quarterly update says we emitted 535 million tonnes of carbon and 187 million tonnes, or 35 per cent of that, came from energy production.
People and commercial players are voting with their feet and installing solar systems at a great rate.
And energy companies are demanding the government set a national policy so they can get investment certainty, because banks will not finance new projects that have 20 to 30 year lead times without a national plan.
The big risk is that when the sun doesn’t shine or wind does not blow supply may be interrupted.
That means a base-load power system is critical, and as the coal-fired plants are just about obsolete and battery storage is still expensive, a clear direction has not been established. In December 2015 Australia, with 196 other countries, signed the Paris global treaty to tackle climate change.
Australia has agreed to join the other countries in keeping global temperature rises to below two degrees Celsius above pre-industrial levels, committing to reduce emissions by 28 per cent of 2005 levels by 2030.
It does not matter if farmers believe in climate change or not, the cost of power, reliability of supply and the signing of the Paris agreement mean the federal government can no longer stuff about.
- Mal Peters
