Today’s release of AEMO’s draft 2026 Integrated System Plan (ISP) tells the real story of the failure
of the Albanese Governments energy transition– it should be another wakeup call for Chris Bowen,
the part-time Climate Change and Energy Minister.
The ISP shows that Chris Bowen’s target of 82% renewable electricity by 2030 is clearly and simply
unachievable, and the report is a damning indictment of the government's failure to manage our
energy transition.
The AEMO ISP is all predicated around meeting the Government’s emission reduction and renewable
energy targets. Meeting these arbitrary policies has led to a 40% increase in electricity bills, an over
40% increase in gas bills, an increase to 3.7 million people who are experiencing poverty including
an increase to 205,000 households on energy hardship plans.
AEMO’s report shows that the cost of Labor’s transition plans continues to face massive cost
blowouts, which will be passed on to consumers by further increases in their electricity bills.
The report also shows that Australia’s coal generators will have to operate until 2049 and that more
gas generating capacity is required urgently.
If Climate Change and Energy Minister, Chris Bowen, wasn’t so focused on his full-time job pleasing
the United Nations he would have already done the necessary work to implement a gas reservation
scheme and to include gas generation in the Capacity Investment Scheme.
The draft ISP acknowledges that the cost of simply building a kilometre of transmission line has
increased 100% - yet they expect us to believe the total plan is suddenly now cheaper. For some
projects, delivery timeframes have slipped by years, and the cost has more than doubled – like VNI
West which is now costed at $7.6 billion, up from estimates of $3.6 billion just 18 months ago in the
2024 ISP.
AEMO has magically reduced the cost of borrowing for developers of projects from 7% to 3%.
Australia’s part-time Climate Change and Energy Minister should clearly explain the rationale behind
this change.
This report confirms again that Chris Bowen’s rushed ideologically driven transition strategy is
jeopardising grid stability, pushing up power bills and further driving up the cost of living.
Last week’s AEMO released its System Security Plan which stated that blackouts are likely to occur as
early as next month. There is only one way to describe Chris Bowen’s energy transition – a complete
and utter mess.
ENDS
Contact: Phil Connole E | philip.connole@aph.gov.au
