Originally published in The Australian Financial Review on July 19, 2016

Adam Giles, Chief Minister of the Northern Territory, should know better than making solar and wind the scapegoat for energy price rises (‘Call for summit on energy crisis’, 18 July). 

New energy management technologies will allow renewables to provide cheaper and better power than old ‘baseload’ technologies. As your editorial points out (‘SA energy madness’), rapidly improving battery storage technology will be part of the long-term solution to the variability of renewable energy.

Bloomberg New Energy Finance’s New Energy Outlook shows that the global market for unsubsidised renewable energy will be worth US$8.7 trillion by 2040. 

In 2015 renewables – not including large-scale hydro – accounted for the majority (53.6%, US$286 billion) of new generation investment, according to the Frankfurt School of Finance & Management.

This transition to cleaner energy and more responsive, efficient electricity markets is inevitable. 

That is good news for all energy consumers as it will lower prices over the long term.

Like all big reforms, the changes seem complex and difficult in the short term. There will be ‘disruption’, but this is in fact the whole point of reform; new energy generation, smart grid and battery businesses will replace old coal and gas.

Mr Giles and other leaders need to realise that when properly managed, the clean energy transition will generate lower prices, more jobs and a cleaner environment. 

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