We need to stick to the plan - delays to transmission builds are costing Australians
A new report by Nexa Advisory reveals that delays in building energy transmission infrastructure will lead to higher electricity bills for both households and businesses, compromise energy reliability and jeopardise emissions reduction targets.
CEO of Nexa Advisory, Stephanie Bashir, said: 'The factors contributing to the slow pace of the energy transition are complex.'
'Nationally significant projects cannot languish in the purgatory of planning and regulatory processes that are not fit for purpose. We have to forge a way forward urgently, focused on accountability, coordination, and rigour.
'This research is about the here and now and getting the transition away from coal done in as orderly way as possible, so that it does not cost Australian families and businesses their financial future.
Federal and State Governments must get back on track to achieving the Integrated System Plan (ISP) through transparent policies which encourage collaboration with industry and provide confidence to investors.
The ISP will deliver transmission, renewable generation and storage required for affordable, reliable and secure electricity to consumers. However continued transmission delays have created uncertainty and led to a disorderly transition.
Our research shows the cost impacts of the delays are most significant in New South Wales. Residential consumers there could face up to $1,100 in additional costs if transmission project delays continue at the average of three years observed in recent years. Small businesses in New South Wales could also pay up to $7,716 a year more. This increases to $24,124 with a seven-year delay. That means that transmission delays are also likely to have broader knock-on inflationary impacts across the economy.
Nexa Advisory is calling for national coordination and accountability to deliver the nation building transmission infrastructure required. This includes accountability on the delivery dates firmed up in the Renewable Energy Target Agreements or other agreements such as the Capacity Investment Scheme between the Federal and State governments; identifying and funding the cost of delays; and working with communities to build social licence, which has been a key roadblock to timely development.
Full report available here. Enquiries
