Bill Shorten has declined to be specific about the cost of Labor’s goal to have 50% of Australia’s electricity generated from renewable sources by 2030.
In an early morning radio interview on Wednesday, Shorten was asked four times about the cost to consumers of executing such a transition, but the Labor leader deflected, pointing to the costs of not acting.
With the Coalition intent on making energy policy a point of sharp partisan difference, Malcolm Turnbull pounced on the interview, telling reporters in Canberra the Labor leader had admitted “he had no idea what his reckless renewable energy target would cost, or what its consequences would be.”
“He confirmed precisely the criticism that we’ve made about Mr Shorten, that he is literally clueless on this subject, mindless, just like South Australia has been.”
Labor’s 50% by 2030 policy is not a RET, it is an “aspiration”. Labor’s election policy says the 50% national goal would work in concert with state-based RET schemes, which the prime minister has blasted consistently since a storm plunged South Australia into a statewide blackout last year.
During an interview with the ABC Shorten was pressed repeatedly about the practical consequences of the shift – the costs to consumers of executing such a significant transition in Australia’s energy mix.
Shorten attempted to explain the broad rationale for increasing renewables in Australia’s energy mix, and he said Labor believed there was “a range of levers which assist, from having an emissions intensive scheme and the energy intensity scheme in the energy industry, having a market trading scheme and an emissions trading scheme [and] looking at the rate of land clearing.”
Pressed again on the costs, Shorten declined any specifics, and said “there is a cost in not acting”.
“Our answer is very, very straightforward. We think the cost of not acting is far greater.”
“We don’t think we could sustain the cost as the Liberals are saying, of building new coal-fired power generation on the scale which Mr Turnbull is saying and we don’t think that, from insurance to drought to extreme weather events, that we can simply go business as usual.”
Australian National University research associate Hugh Saddler in July 2015 estimated Labor’s policy would increase wholesale market prices by four cents per kWh above present levels in every state market except South Australia.
By signing on to the Paris climate agreement, the Turnbull government has committed Australia to reducing emissions by 26-28% on 2005 levels by 2030. Meeting those targets will impose costs on consumers.
The government has been advised by numerous experts that its Direct Action climate policy will not allow Australia to meet the Paris targets, and adopting an emissions intensity scheme, a form of carbon trading, would allow Australia to reduce emissions from energy at the least cost to households and businesses.
The government has thus far rejected that advice.
View all comments >