Every day spent blaming renewables will literally cost you

The cost-of-living crisis is hitting hard and that is certainly felt in power bills. But our study shows that if renewables hadn't been part of the energy mix last year, wholesale electricity prices could be up to $80 per megawatt-hour higher. That's hundreds more dollars forked out for power by homes and businesses. And, it's not just about price. Last year, Australia's biggest coal-fired power station, Eraring in NSW, had around 6,000 hours of outages, all while being propped up by taxpayers. Only about 12 per cent of coal capacity in the grid is less than 25 years old. Relying on aging coal-fired plants would strain already outdated infrastructure, risking blackouts and price spikes.

Research and data from the Australian Energy Market Operator, the Australian Energy Regulator, the CSIRO, the International Energy Agency and our latest report, all make it crystal clear that renewables, backed by batteries, are the cheapest form of electricity. The problem is not that renewables are entering the grid, the problem is that we don't have enough of them and remain reliant on expensive coal and gas power.

Australia's National Electricity Market is notoriously complex, and both CEIG and the federal government through an independent review panel, are busy working on ways to redesign it, but it is worth knowing that the wholesale electricity price is set by the most expensive forms of fuel - which is almost always coal or gas. That is, even when most of the energy is provided by very cheap wind and solar, the price-setting power is still with fossil fuels.

We are getting higher electricity prices because we don't have enough renewables in the grid, and so the extra generation we need is coming from gas-fired plants. With the east coast of Australia exporting most of its gas (and with no domestic gas reserve), Australians are left paying international prices for local gas. The gas price goes up, and so do our power bills. We will get cheaper electricity with more renewables and storage, not less. The best part of renewables is that once you install it, the running costs are pretty much free. Just ask the one in three Australian households generating their own solar power.

We are at a tipping point. The biggest risk to a rapid roll-out of affordable, clean renewables is hesitation.

Private investors are ready to fund wind and solar projects, but they need government policies that give them certainty. Australia is competing globally for investment in renewables, with over 70 per cent of investment coming from offshore. Delays and policy backflips slow down the transition, leaving Australians stuck with high prices and a patchwork, patched-up energy system that's past its use-by date.

Investors want certainty in direction, in policies and in commitments. That is from both federal and state governments, working together to deliver renewables at speed and scale. The recent National Renewable Energy Priority List is a good example of all levels of government singing from the same song sheet to secure 24 transmission and 32 solar, wind, hydro and battery projects.

If investment in renewables stalls, it won't be corporations footing the bill - it'll be taxpayers, funding a pipe dream of nuclear power plants and subsidising an expensive coal and gas system indefinitely. And then paying for it all again, through higher and higher power bills.

Energy policy should be too important to be a political football, but here we are on the eve of a federal election where facts are getting lost amongst finger-pointing and ideology. The sad reality is that every day spent blaming renewables will literally cost you. And that cost is driven by coal and gas and the high price they set.