Coal-fired power can cut household power bills by 25 per cent or more, National Party research shows

The National Party’s dramatic split from net zero has deepened with explosive claims about new coal plants and its effect on Aussie households.

Exclusive: New coal-fired power plants would bring down household power prices by 25 per cent, analysis for the National Party shows, and its rogue former leader Barnaby Joyce says the government should build them.

It can also be revealed that the experts who crunched the numbers on coal for the Nats have done other work that claims refurbishing existing stations has the potential to lower retail costs even further.

On Sunday, the junior Coalition partner abandoned allegiance to net zero by 2050 after considering a report from the Page Research Centre.

The report, co-authored by the Centre’s CEO Gerard Holland, said Australia should “do our fair share” on emissions reduction instead of “acting ahead of the rest of the world”. Lower energy prices should be prioritised over carbon cuts, it added.

On Monday, Mr Holland told this masthead that separate analysis done for the Centre by Arche Energy had concluded that a grid mainly reliant on coal could lower retail power prices by 25 per cent. Continuing the transition to renewables would see costs climb further, he added.

Nats leader David Littleproud announces the party’s stance on net zero on Sunday. Picture: Sarah Ison

Mr Holland said that after that work was done, Arche did number-crunching for Coal Australia that found refurbishing existing plants was even cheaper and hence led to greater power-price reductions.

It would take time to deliver savings, Mr Holland noted.

“With refurbishments and some new coal fired power stations we could stabilise prices and after 10 years, once the solar starts to get switched off, you could get cost reductions,” he said.

The estranged former leader of the Nats Mr Joyce said the government should build new coal plants.

“Let’s be honest, you need to build coal-fired power stations. They are the ones that actually work,” Mr Joyce told this masthead.

“It’s the only way we can fix up the energy grid. It’s not nuclear. It’s coal-fired power stations and the sooner we start the better for Australia,” he said. “Nuclear is not cheaper. The cheapest is coal.

“The government can build them if no one wants to,” he added.

Mr Joyce — who represents the seat of New England, which home to two stations, Liddell and Bayswater — said that if an existing coal plant had to shut then a new one should be constructed on the same site to make use of established transmission links.

Barnaby Joyce says the government should build new coal plants. Picture: Jonathan Ng

“If you are going to pull down Liddell just put a new coal-fired power station in there,” he said.

Returning to almost total reliance on coal would “absolutely” lower household costs, Mr Joyce claimed, because there would be vastly more volume that was always available, unlike renewables.

He said bringing back coal would have some detractors, “but if you are direct with the Australian people they will respect you.”

It was a good move politically, he said, because it would allow conservatives to “tear” their opponents to pieces by arguing “you support the Paris Agreement, we support pensioners.”

In Question Time on Monday, the Albanese government mocked the Opposition’s internal war on climate and energy policy.

“They are divided. They are divisive and they are in disarray,” Treasurer Jim Chalmers said.

“They have net zero credibility on the cost of living or on the budget or on the economy. But we won’t be distracted by the Hunger Games which are playing out on that side of the House,” Dr Chalmers said.

Originally published as Coal-fired power can cut household power bills by 25 per cent or more, National Party research shows