Australia: Pollution cuts ‘would raise energy cost’

Australian families’ power bills would have to rise to pay for a major cut in damaging greenhouse gas emissions, an energy association said.

The Energy Supply Association of Australia said in a new report that substantial greenhouse gas emission reductions were possible by the year 2030, but electricity would cost twice as much.
It’s estimated that new power-generation infrastructure needed to permit emission reductions would cost $75 billion.

ESAA chief executive Brad Page said the sum was a reasonable reflection of the costs involved to supply electricity with lower emission levels than today.

“Of course reducing emissions comes with a cost and that’s the sort of capital cost involved. In the end, basically, consumers will pay, industry through to mums and dads,” Mr Page told Sky news.

“It really is based on expected costs in 25 years’ time to meet what will actually be a 65 per cent increase in the demand for electricity.”

To merely stabilise emissions – which cause global warming – at year 2000 levels by 2030, the burning of brown coal would have to cease and use of black coal would need to be cut by up to 67 per cent, the ESAA said.

The Age