Australian businesses have been warned to expect power bill pain on the path to net zero as industry and energy leaders call for policy continuity.
Hundreds gathered in Melbourne on March 8 for an event hosted by the Victorian Chamber of Commerce and Industry to discuss the nation’s journey to reach net-zero emissions by 2050.
Victorian chamber chief executive Paul Guerra urged the business community not to sit quietly as energy costs rose amid the transition to renewables.
“This isn’t a game–this is our future,” he said.
“Reliable energy at affordable prices must be our aim.”
As the debate heats up federally over the viability of adding nuclear to Australia’s energy transition mix, Mr. Guerra said he was not up for an ideologically driven conversation.
“If the government cannot guarantee that the lights remain on in this state, then I can guarantee that many businesses will find places other than Victoria to set up, and that is not what we want,” he said.
“In our view, every resource should be considered.”
Federal Climate Change and Energy Minister Chris Bowen, who has labelled the opposition’s nuclear push a red herring, addressed attendees in a pre-recorded interview.
State counterpart Lily D'Ambrosio was also absent, with parliamentary secretary for climate action Sheena Watt sent instead.
Mr. Guerra said gas had been much-maligned as a transition energy source but the state government’s approach was softening.
“When I met with the minister this week she was very clear in her thoughts and the plan that gas will play a role,” he said.
Richard Bolt, a founding steering committee member of Net Zero Australia which produced a detailed analysis of pathways to the target, agreed gas was key.
“We have to be prepared to walk down the track of using things that might sound like a compromise but actually enable us to get there,” he said.
Mr. Bolt advised the New South Wales (NSW) government on the state’s electricity infrastructure road map.
He cited the Minns Labor government keeping the essence of the NSW road map developed by the Perrottet Liberal government as an example of mature policy-making.
“That is something that I would have thought the business community would be asking for because it has to invest in long time frames, and I would say the same for households,” he said.
Banksia Strategic Partners’ head of energy and social impact Elyse Gatt said businesses must come to terms with renewable energy being “more expensive” but stressed there would be pay-offs on the other side.
“At the moment, the broad thinking is renewable equals cheaper,” she said.
“During a cost-of-living crisis, it’s not a great time to be talking about this but it does need to be socialised more.”
The transport sector must also start pulling its weight or it will go from the country’s third-largest emission source to the largest, Origin Zero’s general manager of eMobility Chau Le said.
Electric vehicle sales in Australia were still “lagging” the rest of the world despite more than doubling in the previous 12 months, she said.
Ms. Le blamed the slow EV uptake on a “policy vacuum” at the national level before the Albanese government, leaving states to do much of the heavy lifting.
“But now with the national EV strategy, with the new vehicle efficiency standard, with the FBT (fringe benefits tax) extension for EVs, we are really seeing the results,” she said.
