GenCost reinforces need for affordable, well-delivered energy transition
The Australian Energy Council (AEC) says the latest GenCost report reinforces that the transition will be delivered by renewables, firmed by batteries, long-duration storage and hydro, backed by gas.
The transition represents a once-in-a-lifetime transformation to Australia’s energy system and will require careful consideration of affordability, reliability and customer impacts as the system becomes increasingly complex.
Affordability must remain central to policy decisions, with practical support for customers needed as the system becomes more complex.
The AEC has published an Affordability Action Agenda which outlines a range of practical actions for industry and government to help place downward pressure on energy bills.
Quotes attributable to Louisa Kinnear, AEC Chief Executive:
“GenCost reiterates what industry has been saying for some time. The cost to replace ageing generation will put price pressures on the system and will see the wholesale price rise to a projected average price of $125 per MWh by 2050. These projections are consistent with the AEC’s own modelling outlined as part of Energy2050, the industry’s long-term vision for the energy transition.”
“Firmed renewables is the cheapest way to replace exiting generation. That is not up for debate. But it is time for an open and honest conversation with Australians about the costs and challenges of the transition, and what it means for their energy bills over the long term.
“Short-term interventions by governments will not drive energy prices lower into the future. The report reinforces the need for government and industry to work together to target support to those customers who will need it most”
About the Australian Energy Council
The Australian Energy Council (AEC) is the peak body for energy retailers and generators operating in competitive markets.
Our members generate and sell energy to over 10 million homes and businesses and are committed to delivering a reliable, affordable and decarbonised energy system for consumers.
The AEC supports net zero by 2050 and recognises the electricity sector’s role in reducing Australia’s emissions. Our members are major investors in renewables, firming and storage technologies that are critical to ensuring customers continue to receive reliable and sustainable energy supply as we navigate the energy transition.
Media contact Tom Monaghan 0423 348 088
