Energy experts have cast doubt on the Liberal Party's claim that backing coal and gas can reduce power prices, as the party prepares to discuss its proposals with the Nationals. The Liberals abandoned a net zero by 2050 target, arguing it drives unsustainable price increases, and instead propose opening investment vehicles like the Clean Energy Finance Corporation and the Capacity Investment Scheme to fossil fuels.
Shadow Energy Minister Dan Tehan said the party wants a 'complete reset' where the market determines electricity generation, not government picking winners. However, experts question whether coal and gas remain viable long-term investments. Dr Niranjika Wijesooriya of the University of Sydney noted that while these projects offer quick returns now, global investment funds may shift away as renewables become more lucrative.
The Australian Energy Regulator reports nearly all grid-scale power investment since 2012 has been in renewables, even before current incentives. Major energy investors maintain their own net zero commitments, and Business Council CEO Bran Black stressed that a clear net zero plan is crucial for investment certainty.
Energy analysts doubt the policy would significantly lower bills, as recent price spikes stem from factors like gas export prices and network costs, not renewable subsidies. The Liberals have yet to identify any investors supporting their approach.
