Statement on the Opposition’s Nuclear Costings

The peak body for energy retailers and generators, the Australian Energy Council said the release of the Opposition’s nuclear costings and future energy mix raised questions on the role of the market in an energy system with significant volumes of government-owned nuclear plants.

The Australian Energy Council’s Chief Executive Louisa Kinnear said, “We are particularly concerned about the assumed lack of investment in new and replacement generation over the next ten years.

“We acknowledge both consumers and industry have become concerned with the cost and deliverability of the transition, but slowing investment while we assess technologies only available in the future creates a significant risk for the stability of the energy system.

“A key issue is the modelling assumes coal remains in the system for longer than asset owners have advised, which could result in reliability issues.

“The Coalition energy mix and approach would mark a significant departure from the current energy transition trajectory, with far reaching consequences for market design decisions, investment decisions for the sector and the emissions trajectory Australia can achieve.

“Given the approach would remain speculative for a number of years as social licence and other hurdles are overcome, the AEC believes the responsible path in the next ten years is to continue with the rollout of available technologies like wind, firmed by gas, pumped hydro and other forms of long duration storage as we assess other alternatives.

“The current focus should be on ensuring a market design that provides the right investment signals for the new and replacement generation needed over the next ten years and beyond.”

About the Australian Energy Council

The Australian Energy Council is the peak industry body for electricity and downstream natural gas businesses operating in the competitive wholesale and retail energy markets. AEC members generate and sell energy to 10 million homes and businesses and are major investors in renewable energy generation. The AEC supports reaching net-zero by 2050 as well as a 55 per cent emissions reduction target by 2035 and is committed to delivering the energy transition for the benefit of consumers.