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Explore the latest trends and actionable insights on the Australia Power market to inform business strategy and pinpoint opportunities and risks

Australia Faces High Costs of Power Amid Coal Plants’ Phaseout

Industry: Fossil Fuels
Current: Other Industry Indicators

According to energy authorities, Australia will likely record high costs of electricity for several years because large new investments in transmission lines are required
The Energy Security Board and the Australian Energy Regulator (AER) issued reports warning that consumers would have to pay more for energy
Since gas-fired generation is necessary during periods of high demand, increasing prices of gas are also likely to result in higher costs of electricity

Power Costs Increases as Coal Facilities Close in Australia

According to energy authorities, Australia will likely endure high costs of electricity for several years because large new investments in transmission lines are required to connect renewable energy projects to the grid as coal-fired output is phased out.

The Energy Security Board and the Australian Energy Regulator (AER) issued reports warning that consumers would have to pay more for energy because of the costs associated with moving to greener sources of energy. Due to several regional and global factors, power prices reached record highs in June 2022. According to the AER, electricity contract markets, and coal and gas price estimates "indicate that those high costs will endure for at least the next two years."

Since gas-fired generation is necessary during periods of high demand, increasing prices of gas are also likely to result in higher costs of electricity.

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