Budget 2020: Labor vows $20bn energy boost to upgrade power grid

A Labor government would establish a new public body that would pour $20bn into upgrading the nation’s energy transmission system.

Anthony Albanese has committed to establishing a body called Rewiring the Nation to ‘modernise the grid’ Picture: Bruce Long

A Labor government would establish a new public body that would pour $20bn into upgrading the nation’s energy transmission system, and Anthony Albanese vows the modern energy grid would be “built by Australian workers using Australian suppliers”.

In his budget reply speech, the Opposition Leader committed to establishing a body called Rewiring the Nation to “modernise the grid” in line with a blueprint by the Australian Energy Market Operator. The body would hand out $20bn of cheap finance to the private sector.

Labor predicts that upgrading the grid could bolster the economy by $40bn.

AEMO’s Integrated System Plan, released this year and backed by state and federal governments, plans for a revamp of the energy transmission system so it can cope with a high level of solar and wind sources by 2040.

Mr Albanese said the plan would bring the energy grid into the 21st century.

“Australians don’t just pay for their power, but for the cost of building and operating the grid and then a hefty price on top,” Mr Albanese said. “Only Labor will tackle this head on with a modern grid, more jobs, cheaper power and the reliable energy our country needs.”

He said Labor would keep the entity in public hands to “ensure the grid is rebuilt at the best price possible”. There would also be a mandate for local workers and locally supplied materials.

Opposition climate change spokesman Mark Butler said Australia should be leading the race for renewable energy jobs.

“As more renewable energy gets built, we need the transmission network to support it,” Mr Butler said.

“That’s why Rewiring the Nation is a no-brainer. It ensures Australia’s modern energy grid will be built by Australian workers using Australian steel at the lowest possible cost.”

Projects recommended by the AEMO plan include an upgrade to the Victoria-NSW interconnector, a new interconnector between NSW and South Australia, a transmission upgrade linking the Snowy Hydro scheme with other parts of southern NSW, and more transmission links to renewable energy zones.