Coalition touts Frontier Economics report claiming cost of Labor’s energy plan is $642 billion

The Albanese Government’s renewable energy plan could cost five times what Labor has promised, according to new independent research commissioned by the Coalition.

The report found the cost of replacing coal-fired power generation with a solar and wind powered National Energy Market would be $642 billion.

This is more than half a trillion more than the $122 billion price tag touted by Labor for a renewable NEM.

However the study from Frontier Economics — which advises both sides of politics — does not examine the Coalition’s alternative nuclear power plan. The Coalition has pledged to release costings by the end of the year.

Opposition leader Peter Dutton wants to build seven nuclear power plants across Australia, including one near Collie, but is yet to release a plan to overcome State and Federal bans on nuclear power generation.

In a joint statement from Mr Dutton and shadow energy minister Ted O’Brien, the pair said Frontier’s research was proof power bills would continue to surge.

“Australians are facing higher bills, growing debt, and an energy system at risk of instability,” they said.

“Labor’s analysis fails to account for critical expenses. Frontier Economics uncovered an additional $62 billion in unanticipated transmission costs, revealing the vast underestimation in Labor’s estimates.”

Frontier’s report found transmission costs related to the NEM — which WA is not a part of — faced consistent and sharp cost overruns.

“We find that project cost estimates are highly unreliable and show that these estimates tend to exceed their initial project costs by over 100 per cent,” the report said.

“NEM transmission projects are notorious for greatly exceeding their estimated costs.”

Climate Change and Energy Minister Chris Bowen accused the Coalition of making up costings for every policy except their nuclear plan.

“It’s time for Peter Dutton to be upfront with Australians about what his plan to keep the lights on and bring down emission is going to cost Australian households in higher energy bills and high taxes,” Mr Bowen said.

“Experts say Peter Dutton’s taxpayer-funded nuclear plan will cost $600 billion, take 20 years to build, only deliver 4 per cent of our energy needs and push up emissions by extending coal.

“The Government’s energy plan is fully costed and backed by the experts and available on AEMO’s website.”

The chair of Australia’s energy regulator recently told a parliamentary committee that the nation would likely face a gap in energy production between coal plants reaching the end of their working lives and the start of nuclear energy production.

Australian Energy Regulator chair Clare Savage predicted it would take 10 years just to set up the regulations for nuclear power.

“Can we keep coal alive for that long? I don’t think so, not at a cost effective way for customers,” Ms Savage said.