Australia must accelerate its transition to renewable energy if it wants to avoid future price shocks, the head of the Australian Energy Market Operator (AEMO) warned today.
Moving rapidly to wind and solar powers is the key to helping drive down soaring power prices in the long term, AEMO chief executive Damien Westerman told Nine Newspapers.
Moving away from international coal and gas supplies will help protect Australians from future price shocks.
Westerman said the impact of the Ukraine war meant efforts to prepare the national power grid for higher levels of wind and solar to protect against future global fossil fuel shocks were even more urgent, he said.
“Domestic thermal coal and gas prices are vulnerable to international events and conditions, as we’ve seen this year with the war in Ukraine,” he said.
“This has contributed to higher than average wholesale energy prices, prompting short-term solutions to assist consumers.”
He says even after factoring in the cost of upgrading Australia’s grid, including new technology and transmission lines, wind and solar will still be the cheapest forms of new power generation.
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The federal government is already looking to a future of renewables.
Energy Minister Chris Bowen yesterday announced the federal government would invest $176 million in advanced battery technology.
The controversial energy plan, spruiking a $1.5 billion bill, will cap gas and coal prices for a year.
Energy market intervention will slow but not stop wholesale price increases but big coal and gas companies are furious after their previous monopoly on choosing their price was slashed by this energy bill.
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