Victorians could pay almost $100 a year more for electricity under a state Coalition policy to halt two key transmission projects. This was reported by Qazaqyia.kz citing The Guardian.
Analysis by consultancy Nexa Advisory, commissioned by non-profit group Environment Victoria, has found postponing the Western Renewables Link and the VNI West would delay other renewable energy projects. Such a move could force the state to rely on using more gas.
As a result, the average wholesale electricity price could rise from $52.9 to $85.20 per megawatt hour – an increase of 37% – between 2027 and 2031. This would flow through to households, adding $472 to the power bills of a typical household – and up to $4,719 for a small business and $11,797 for a large business - over the five-year period.
By 2050, delaying the projects could add $33bn to wholesale electricity costs and produce an additional 8.6m tonnes of carbon dioxide emissions – akin to about a quarter of the state’s current annual electricity emissions.
Analysis Methodology
The analysis by Nexa Advisory was commissioned by the non-profit group Environment Victoria. The study aims to assess the impact of the Coalition's proposal.
Coalition's Position
The Coalition intends to reduce costs for residents by halting these projects, but the analysis shows the opposite effect.
Environmental Impact
Delaying the projects would lead to a significant increase in greenhouse gas emissions, negatively affecting climate goals.
Economic Consequences
In the long term, this decision would place a heavy burden on the state's economy, especially on energy-intensive enterprises.
Conclusion
The analysis shows that the Coalition's proposal would not only lead to additional costs for consumers but also worsen the environmental situation. Decision-makers should take these data into account.