Labor’s energy plan has been exposed as a $642 billion disaster in the making, with costs that are five times higher than what Labor has claimed.
Australians deserve to know the truth behind Labor’s hidden costs and the impact it will have on energy bills and the economy.
The Coalition asked Frontier Economics to independently assess and compare the cost of Labor’s ‘renewables-only’ plan and an alternative plan which includes nuclear energy.
For years, Labor has cited a $122 billion price tag for its plan to achieve a net-zero National Electricity Market by 2050.
The truth, however, is that Labor’s ‘renewables-only’ strategy will actually cost Australians at least $642 billion.
This staggering figure – based on AEMO’s preferred Step Change scenario – represents the true cost of utility-scale generation, storage, and transmission, and it’s a burden that will ultimately fall on taxpayers and households.
WHY THIS MATTERS
Labor promised Australians energy savings of $275 on annual electricity bills, yet prices have soared – increasing by up by $1,000 more than Labor promised.
With Frontier Economics now confirming the skyrocketing costs of Labor’s plan, this situation is set to worsen.
Australians are facing higher bills, growing debt, and an energy system at risk of instability.
KEY INSIGHTS FROM THE REPORT
- A FORK IN THE ROAD – The Albanese Government’s “renewables-only” policy is a high-risk, high-cost path.
Australia faces a critical choice: Labor’s costly ‘renewables only’ agenda or the Coalition’s affordable, balanced energy mix to achieve a net-zero electricity grid by 2050.
- LABOR’S $642 BILLION PLAN – Labor’s plan carries a price tag of $642 billion – a fivefold increase over their public estimate.
- HIDDEN COSTS – 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.
- A CARBON PRICE BY STEALTH – Labor has quietly imposed a shadow carbon price – the Value of Emissions Reduction (VER) – driving up costs for consumers. Starting at $70 per tonne, the VER will rise to $420 per tonne by 2050, a hidden tax impacting every household.
- A HUGE OVERBUILD – Labor’s plan overestimates demand, leading to unnecessary, costly overbuilds.
Unrealistic targets for EV uptake, green hydrogen, and renewables are leading governments and the private sector to over-capitalise on building out a new grid, and everyday Australians will pay the price.
- COVERT COST BLOWOUTS – Projects like VNI West, Humelink and the Gladstone Grid have seen major cost blowouts, marking a stark warning about the escalating costs of Labor’s ‘renewables-only’ agenda.
- EXTEND & PRETEND ON COAL – Labor has promised to shut down 90% of coal-fired power by 2034, yet coal plant owners say 10.8 GW of the coal Labor claims will be gone will still be operating.
This exposes Labor’s tricky “extend and pretend” strategy, where it extends coal in the real world but pretends it’s closing coal to keep the Greens happy.
Now that the real cost of Labor’s plan has been revealed, the Coalition will finalise and release costings by the end of the year for an alternative plan including nuclear energy.
This will give Australians a side-by-side comparison of the true costs and benefits of both approaches.
With bipartisan commitment to net zero by 2050, the real question is which plan will deliver for Australia: Labor’s all-eggs-in-one-basket renewables-only scheme or the Coalition’s plan for a balanced energy mix, which includes renewables, gas, and nuclear.
The truth about Labor’s plan is out, and the Prime Minister and Minister Bowen have been caught deceiving Australians.
Please find a summary of Labor’s costly plan and a full copy of the Frontier Economics Report here.