Renewables are the light at the end of the power-price tunnel

Investing in clean energy will maximise the economic potential for gas exports and ensure energy affordability for domestic users, the Clean Energy Council’s (CEC’s) Chief Executive David Green has told a power and utilities conference in Sydney.

While many people think easing power price rises are the light at the end of the tunnel, Green said rising gas prices are about to hit hard.

“With a domestic supply crisis looming, gas prices are predicted to double or even triple within 10 years on the east coast of Australia. If we don’t act soon to reduce consumption and invest in alternative sources of energy, that light at the end of the tunnel could turn out to be an oncoming freight train,” Green said.

“The cost of gas is high and rising, and it would be a mistake to convince ourselves that we’ve turned the corner on the cost of energy. This presents us with challenges, but also an opportunity - to diversify our energy supply with renewables and invest in energy efficiency.”

Using smarter energy technologies and investing in other sources of large-scale energy generation such as wind, bioenergy and solar could keep a lid on power prices and ensure that gas exports continue to make a positive contribution to Australia’s economic bottom line, Green said.

The Renewable Energy Target has already delivered $18.5 billion in investment with $3.7 billion worth of projects currently in construction or development, while the amount consumers pay to fund the policy is forecast to fall to just 4% of the average bill by 2020.

“This represents a win-win for the industry and policymakers, who are currently grappling with the twin challenges of keeping energy prices affordable, but also continuing to make the best use of Australia’s enviable natural resources,” Green said.

“Renewable sources of energy are largely immune to the kinds of international cost pressures that are forcing up prices for businesses and consumers, so investing in renewable energy is a sensible and safe approach to ensuring Australia’s continued energy security.

“The other piece of the puzzle is that we need to get smarter about the ways we use energy so that we can avoid needing to build new conventional power stations we may not need in the long term.”