Queensland election 2017 analysis: Voters left in the lurch on power problem

THERE’S no question that Labor’s 50 per cent renewable energy target will ruin the business model of the Government’s coal-fired power station fleet.

Voters have a dim view of the major parties’ promises on power prices and supply.

• Coal-fired power stations face closure

THERE’S no question that Labor’s 50 per cent renewable energy target will ruin the business model of the Government’s coal-fired power station fleet.

Given the target means new generation capacity will be forced into an already over-supplied market and given first dibs on electricity demand, it’s simple arithmetic.

What that means for the operating future of the Government’s coal-fired stations, which make up 60 per cent of Queensland’s generation capacity, depends on which report you’re prepared to believe.

TODAY’S POLL QUESTION

The Australian Institute of Progress report insists the threat of closures is imminent and Queensland faces blackouts in future akin to what South Australia suffered.

However, the Government’s Renewable Energy Panel said it thought no closures would be required before 2030 but conceded testing that synopsis was “outside the scope” of its terms.

This was a critical flaw given the panel’s central finding was that the target would be “broadly cost neutral” based on the assumption that no coal-fired stations were closed.

It recommended that the Palaszczuk Government conduct this work but nothing has been publicly released that suggests such work has been undertaken.

It means Labor is asking Queenslanders at this election to simply trust that the renewables target won’t increase their power prices and won’t imperil the system’s reliability.

Likewise, the LNP is asking for the same with its north Queensland power station plan, which may or may not attract market attention and may or may not improve prices.

Little wonder voters have a dim view of the major parties and their promises.

Originally published as Queensland election 2017 analysis: Voters left in the lurch on power problem