Closing uneconomical coal-fired power plants will reduce competition and short-term supply, but instead of wasting money to extend its life, Australia needs a plan to balance coal output with new energy sources in the coming years. It should allow Australian energy companies to increase renewable energy and back it up with batteries and, if necessary, “peak” gas plants that can be switched on and off quickly.
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The Albanian government’s plan to invest $ 20 billion in new high-voltage transmission lines is part of this process, as it will ensure that new energy sources can reach consumers at a reasonable price.
It will take a few years for these investments to rebalance the network. In the meantime, governments should offer specific assistance to families facing temporary increases in electricity prices. NSW, for example, has just increased its help paying energy bills for people with severe financial hardship.
The dramatic change in our coal and gas energy network will create major challenges, but renewables are not the cause of the problem. They are part of the solution.