National leader David Littleproud has threatened to tear up contracts for wind and solar farm developments, in the latest broadside against large scale renewable energy from the federal Coalition.
The remarks – reported by the Newcastle Herald and later verified by Renew Economy via a transcript – were made in a press conference last week in Newcastle, when Littleproud was campaigning against offshore wind projects and outlining the Coalition’s hope that it could build a nuclear power plant in the upper Hunter Valley.
The Coalition has vowed to stop the roll out of large scale renewables, and keep coal fired power plants open in the hope that they can build nuclear power plants – recognised around the world as the most expensive power technology on the planet – some time in the late 2030s and 2040s.
No one in the energy industry, nor large energy consumers for that matter, are the slightest bit interested in nuclear because of its huge costs and time it takes to build, and because it would set back Australia’s short term emissions reductions.
But the comments about contracts are the most sinister to date, and reflect the determination of a party leader who just a few years ago described renewables and storage as a “good thing”, including the huge wind and solar projects that are being built in his own electorate, to destroy the renewables industry.
The Newcastle Herald asked Littleproud if an incoming Coalition government would consider “tearing up contracts” for renewable infrastructure contracts that had already been signed.
“Well exactly,” Littleproud said. “We will look at where the existing government took contracts and at what stage they are at.
“There are some projects on land that we will have to accept, but we are not going to just let these things happen. If that means we have to pay out part of the contracts, and we will definitely look at that. You’re not going to sit here and say today that we’re stopping it and then not following through.”
The federal government this week announced the biggest ever auction of wind and solar in Australia, seeking six gigawatts of new capacity that will be underwritten by contracts written by the commonwealth.
This will see at least 2.2 GW of new wind and solar sourced in NSW, at least 300 MW in South Australia, already the country’s leader with a 75 per cent share of wind and solar in its grid, and multiple gigawatts spread over other states.
However, the Coalition’s nuclear plans are already facing delays, having pulled back from a previous commitment to deliver the nuclear policy before the May 14 federal budget. It now only promises to release the policy before the next election, with Littleproud telling Sky News on Monday that the party “would not be bullied” into an early release.
One of the many problems with its nuclear strategy will be finding sites for the proposed power plants. The Coalition has targeted the upper Hunter as one site, but AGL, the owner of the site that houses the now closed Liddell and the still operating Bayswater coal generators, has said it is not interested because it is focused on renewables and storage.
Littlepround, however, said there are other sites in the area that could be used, although the Newcastle Herald said he declined to nominate those sites. Inevitably, they would require new infrastructure.
The campaign against renewables and for nuclear has been based around misinformation, both on the cost and plans of renewables and transmission, and on the cost of nuclear power plants, which have stalled around the world because of soaring costs, huge delays, and because no small modular reactor has yet been licensed in the western world.
That campaign has been amplified by right wing “think tanks” and ginger groups, and the Murdoch media, and largely reported uncritically in other mainstream media. It appears to be having some traction.
According to an Essential Media poll published in The Guardian on Tuesday, 40 per cent of respondents ranked renewables as the most expensive form of electricity, 36 per cent said nuclear, and 24 per cent said fossil fuels.
The poll also found a majority (52%) of voters supported developing nuclear power for the generation of electricity, up two points since October 2023, and 31% opposed it, down two points.
The most recent GenCost report prepared by the CSIRO and the Australian Energy Market Operator, like other international studies, says that nuclear power costs nearly three times more than renewables, even counting the cost of storage and transmissions.
However, the Coalition – with the support of right wind media and agitators – have led relentless campaigns against the CSIRO and AEMO, even though their nuclear costs were based on the only SMR technology that has gotten close to construction, before being pulled because it was too expensive.
The push to stop renewables comes despite reports from both AEMO and the Australian Energy Regulator that highlight how the growth in renewables has lowered wholesale power prices, despite extreme weather events and the impact of the unexpected outage of Victoria’s biggest coal generator.
The only state where wholesale electricity prices actually rose were in Queensland, which has the heaviest dependency on coal, although the state has just passed laws that lock in its 75 per cent emissions reduction target and its 80 per cent renewables target by 2030.
South Australia has already reached a 75 per cent wind and solar generation share in its grid, and aims to reach “net” 100 per cent by the end of 2027. It enjoyed the biggest fall in wholesale spot prices in the last quarter, which state minister Tom Koutsantonis said should be passed on to consumers.
“SA’s prices fell the most of any state, and the black coal dependent states of Queensland and NSW had the highest prices,” Koutsantonis said.
“These proven falls in wholesale prices are encouraging signs that we are on the right track. South Australia’s high proportion of renewables – which exceeded 75 per cent of generation in 2023 – is key to South Australian prices being far lower than the black-coal states of NSW and Queensland.
“Retail prices must fall because wholesale costs to retailers are going down.”
(Note: This story has been updated to include more of the quotes from Littleproud after being provided with a transcript).
