Renewable Power Australia – Labor Party Leader Bill Shorten Promises $100 Billion Of Pain For No Climate Gain

Posted on Mon 08/17/2015 by

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Bolt New 01By Andrew Bolt ~

Henry Ergas on one of Australian Labor Party Leader Bill Shorten’s most disastrous policies:

RenewablePowerWith barely one per cent of ­global emissions, Bill Shorten would have Australia mandate a share of renewable energy two times greater than that aimed at by the world’s largest emitters.

The threat that poses to consumers, who would face dramatic increases in power bills, is obvious…

Shorten has announced that “Labor’s ambition is to see 50 per cent of our electricity energy mix generated by renewable energy by 2030″…

A reasonable estimate (derived using a model developed for the Minerals Council by electricity specialists Principal Economics) is that increasing the renewables target would raise the costs of power by $86 billion, which amounts to $600 per household per year.

Given that the average family has an annual electricity bill of some $1600, adding $600 is hardly trivial. Nor could anyone claim $86bn is small change for the Australian economy as a whole…

Shorten also intends to introduce a tax on carbon … It is clear any such scheme would disproportionately raise the costs of the coal-fired generators, accelerating their exit, and so further boosting prices. And by piling a carbon tax on top of the tax associated with the RET, it could make the distortions caused by increasing the RET even greater than … $86bn… Given a carbon tax, the additional loss from raising the RET would (on an admittedly rough estimate) be in the order of $38bn, taking the total cost of Shorten’s renewables policy well over $100bn…

Shorten’s policy, were it ever ­implemented, would be a one-way ticket to energy hell.

And to think that Shorten is wasting that $100 billion to fight a monster than seems to have vanished:

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Andrew Bolt is a journalist and columnist writing for The Herald Sun in Melbourne Victoria Australia.

Andrew Bolt’s columns appear in Melbourne’s Herald Sun, Sydney’s Daily Telegraph and Adelaide’s Advertiser. He runs the most-read political blog in Australia and hosts Channel 10’s The Bolt Report each Sunday at 10am. He is also heard from Monday to Friday at 8am on the breakfast show of radio station MTR 1377, and his book  Still Not Sorry remains very widely read.

Read more excellent articles from Andrew Bolt’s Blog . http://blogs.news.com.au/heraldsun/andrewbolt/