Exposing the True Cost of Net Zero

What is the true cost of the net zero transition? Minister Watt had previously provided a figure of $122 billion, but this figure was significantly discounted and left out substantial elements of the cost, which Frontier Economics estimates to be over $650 billion. One critical omission was the cost of behind-the-meter power, which involves taking power from people’s wall batteries and electric vehicles.

When I pressed for details, Senator McAllister reiterated the government’s reliance on expert advice from AEMO. However, bombshell freedom of information documents revealed that AEMO was instructed by the government to take net zero as a forced assumption, despite claims of independence. This raises a crucial question: could an even cheaper grid be built if we ditched net zero?

The reality is that Australia’s electricity prices have never been higher, despite increasing installations of wind, solar, and batteries over the past 20 years. South Australia, the wind and solar capital of Australia, has seen spot prices averaging $200 per megawatt hour for the last quarter. It’s clear that the current approach is pushing Australia into poverty.

One Nation is committed to exposing the truth and advocating for policies that prioritise the well-being of Australians. We need a government that is transparent and accountable – one that makes decisions based on the best interests of the people, not political agendas.

Transcript

Senator ROBERTS: My question is to the Minister representing the Minister for Climate Change and Energy, Senator McAllister. On Monday, Minister Watt provided a figure for the cost of the net zero transition to the economy at $122 billion. AEMO discounted the $500 billion cost by 7 per cent a year, producing a figure of just $122 billion. This left out substantial elements of the cost, which Frontier Economics puts at over $650 billion. There was no allowance for behind-the-meter power, where you go in and take power out of people’s wall batteries and EVs. Minister, what is the cost of this behind-the-metre cost to households and businesses that you have left out of the net zero costs?  

Senator McALLISTER: Senator Roberts yet again asks for more detail— 

Senator Cash: Yes, give us more detail! 

Opposition senators interjecting— 

Senator McALLISTER: when questioning a publication that is in the public domain— 

The PRESIDENT: Order! This is Senator Roberts’s question. He’s entitled to a response, and the minister is entitled to silence. Minister McAllister, please continue. 

Senator McALLISTER: Thanks very much, President. I can inform Senator Roberts, as I have in the past, that the government’s approach is to rely on the advice of experts, and the experts at AEMO conduct intensely detailed, publicly available, engaged work with a community of experts to cost the transition for our power system to 2050. I will say that they provided information publicly again and again and again saying that the cheapest path to 2050 to meet our electricity system requirements lies in renewables firmed by batteries and other forms of storage and by gas. I will say, though, Senator Roberts, that the approach we take, which is to listen to the experts and provide significant amounts of detail in the public domain for scrutiny, is quite different to the approach taken by your party. I have checked the One Nation website. You’ve actually done some policy work over the summer. There were 88 words worth of policy on energy and energy prices previously on the One Nation website; it’s down now, I understand, to 33 words or thereabouts. It used to say that you were committed to building low-emission, coal-fired power plants. You’ve now moved to a new variation on this, which says that you’re going to change the NEM rules to incentivise coal- and gas-fired power. But I make this point: to your credit, it’s a deal more detail than those opposite have provided. The people opposite have proposed a risky nuclear system which they cannot find an expert willing to back. It is $600 billion worth, on the taxpayer tab, with no plan for how to pay for or deliver it— 

The PRESIDENT: The time for answering has expired. Order! Senator Ayres, I have called the chamber to order. That includes you. Senator McKenzie! I think I’ve called you to order enough times this question time. 

Senator ROBERTS: Minister—rely on experts, eh? Bombshell freedom of information document show that AEMO was directly instructed by your government to take net zero as a forced assumption, despite your claims AEMO’s process was not independent of Labor’s political agenda. It’s true, isn’t it, that an even cheaper grid could be built if we ditched net zero, but your government told AEMO they could not look at that. 

Senator McALLISTER: Senator Roberts misunderstands the process that AEMO goes through. AEMO has and has been very clear about the process they undertake to work through the issues associated with replacing and fixing up the mess that was created by those opposite. When those opposite left office, the average wholesale energy price was $286 a megawatt hour. Just like we inherited a 6.1 per cent inflation rate, which they don’t take responsibility for, they won’t take responsibility for the mess that they left either. They know exactly what was going on. Prices were going up, and what did Mr Taylor do at that time? He went off to the Governor-General to make arrangements to hide that price increase from the Australian people before an election. What a disgrace. There is a lot of work to do to resolve the mess that was bequeathed to the Australian people by those opposite, and we are up for it. 

Senator ROBERTS: Minister, you talked about Liberal policy; I want to know about Labor policy. Australia has been installing more and more wind, solar and batteries onto the grid for 20 years, and electricity prices have never been higher. South Australia, the wind and solar capital, has spot prices averaging $200 per megawatt hour for the last quarter. When will you admit the truth—that your net zero is pushing Australia into poverty? 

Senator McALLISTER: That statement is simply incorrect. The prices that are reflected in the way Australians experience their bills are not to do with the spot price. They are an average price from all of the prices that are experienced within the National Electricity Market. The truth is that renewables remain the cheapest form of new generation. We’ve got a lot of work to do. These guys managed the electricity system—or mismanaged it—for over a decade. There were 22 policies. Four gigawatts of dispatchable generation left the grid; only one came on. That actually causes a problem that requires resolution. When we left office, prices were very, very high. There was no plan at all, and our government is working through the necessary steps to put in place the generation to secure Australia’s interests into the future.