Move away from coal has led to soaring energy costs

Move away from coal has led to soaring energy costs

The attempt to move away from coal fired power in Australia has lead to the current situation of soaring energy prices, a business leader has said.

Despite having abundant coal and gas, Australia has the highest electricity prices in the world.

There have been attempts recently to restrict new modern coal fired power in favour of renewables and gas, which has driven up the price of energy for homes and businesses.

Business magnate Sanjeev Gupta highlighted the ironic nature of the situation.

He said: “We have every energy resource you could want — whether its old school or new school — here in Australia. Yet, we have the most expensive power in the world.

“It is not a bit of a mess, it is a major mess,” he went on to say.

Gupta invested in a steel making business in South Australia where energy prices are the highest in the world. South Australia also suffered blackouts in 2016 due to wind turbines shutting down.

The Australian government has adopted an “all of the above” approach to solving the crisis with energy minister Josh Frydenberg saying: “You cannot narrow the discussion down to being pro-coal or anti-coal, or pro-renewables or anti-renewables. The issues are a lot more complex.”

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