Menu

Q E A S

Queensland Economic Advocacy Solutions

header photo

10 facts about Queensland’s energy future (in pictures)

If you are like me then sometimes it is just easier to look at a picture or a graph.  Accordingly there are two recent reports that I believe can best summarise what is a crazily difficult subject.  These reports are the Independent Review into the Future Security of the National Electricity Market (the Finkel Review) and the Australian Energy Regulator’s State of the Energy Market 2017 (AER).  I have taken the best graphs from each to come up with a narrative for Queensland.  So here goes .......

1.    Queensland’s energy market is complex!

 Source: AER

2.    Queensland electricity prices are on par with the National average and like other States recent increases are unstainable.

Source: AER

Source: AER

3.    The biggest influencer on energy policy and in turn electricity bills in recent years is not from the State Government but from the Federal Government with the implementation (1 July 2012) and then the removal (1 July 2014) of the ‘carbon tax’.

Source: AER

4.   Whilst current electricity price rises are unsustainable no matter what the Federal and State Governments do electricity prices never appear to be coming down (i.e. prices are going to rise and its just a question of by how much).

Source: Finkel

5.   Queensland is significantly exposed if coal is ever disadvantaged through Government policy settings.

Source: AER

6.    However inevitably there will be a transition point where renewable energy is more cost effective than coal.  We are not yet at that point in respect to prices but are potentially already there for investment in new generation.

Source: Finkel

Source: Finkel

7.    Queensland should not necessarily fear the Finkel Review's recommendations as they are neutral on technology / energy source.  However its adoption should be amended to include new investment in high efficiency, low emission (HELE) clean coal generation.

Source: Finkel

8.    Queensland has the highest generation of electricity in public ownership of any State and we also have a surplus of supply.  Accordingly we do have limited capacity to influence behaviour, supply and prices but it comes at the expense of other States and dividends to the State Government.

Source: AER

Source: AER

9.    Nuclear energy is not on the radar in the Australian or Queensland energy debates despite having the lowest wholesale cost.  

10.    Finally it could be worse we could live in Portugal!

Source: AER

Go Back

Comment