Energy Crisis: The Case for Coal Until Nuclear Power is Ready

eWise Blog

Australians are facing yet another punishing increase in electricity bills, with the Australian Energy Regulator (AER) warning that prices will rise by up to nine per cent from July 1. This comes as a crushing blow to households already struggling with the cost-of-living crisis and raises serious concerns about the Albanese government’s renewable energy strategy.

The AER’s draft decision outlines increases ranging from three per cent to six per cent in Queensland and South Australia, with New South Wales bearing the brunt of a nine per cent rise. These hikes follow years of soaring energy prices, with some regions experiencing increases of up to 40 per cent in just two years. The reason? A reckless rush towards renewables without ensuring reliable baseload power remains available.

The Albanese government continues to champion a transition to renewable energy, but the reality is that solar and wind power alone cannot provide the stability needed for an affordable and reliable electricity grid. While federal Energy Minister Chris Bowen insists that long-term reforms will eventually bring prices down, Australians are seeing their bills skyrocket in the meantime.

Consumers were promised relief, with the Labor government pledging to reduce electricity prices by $275 per year before the 2022 election. Instead, average power bills have increased by more than $600. Households and businesses are being left to suffer while policymakers push an agenda that is failing to deliver.

The solution is clear: Australia must maintain coal-fired power stations until nuclear energy can be introduced as a viable alternative. While renewables have their place in the energy mix, the premature shutdown of coal plants is putting unbearable strain on the grid and driving up costs.

Despite the government’s claims that keeping coal in the grid raises prices, the opposite is proving true. As affordable coal-fired generators are retired, the wholesale price of electricity is increasingly set by the higher costs of gas, hydro, and battery storage. The result? Power bills continue to climb, and households are left footing the bill.

Nuclear energy presents the best long-term option for Australia’s energy security, offering a clean, stable, and reliable power source. However, establishing nuclear power infrastructure takes time, meaning coal must remain in the mix until nuclear plants can be built and operational.

With another round of price hikes looming, it’s time for the government to rethink its energy policy. Australia needs a pragmatic approach that prioritises affordability and reliability over ideological commitments. Coal-fired power stations must continue operating until nuclear energy is a reality. Otherwise, Australian households will continue to bear the brunt of reckless policy decisions that put politics before people.

The Albanese government must act now to secure energy affordability before it’s too late. The future of Australia’s power grid depends on it.