Labor Has Won 75 Seats In Australia’s Lower House of Parliament
The recent federal election results showed how Australians have a strong swing towards aspiring leaders who campaigned on issues relating to the environment and climate. After a decade of the coalition’s ruling, Australians have elected labour leader, Albanese as the new Australian prime minister. And, electing mostly the Labour, Independents and Greens aspirants to government seats.
Labor has won 75 seats in Australia’s lower house of parliament, just short of the 76 needed to form a majority government. The party will form a slim majority government, providing an opportunity for it to turn its climate policy platform into reality.
Labor Government on Solar Energy and Climate change
On Albanese’s victory declaration, the new Australian prime minister said, “together we can end the climate wars”. Adding, Australia can be a renewable energy superpower. The labour party targets cutting 43% of emissions by 2030. That’s more than the colation’s goal of 26%-28% reduction.
The rocketing increase in power bills resulting in consumer price increases and the cost-of-living pressures has been a hot topic in election debates. The Labor group announced that they have committed $20 billion for their “Rewiring the Nation” policy that would follow the Integrated System Plan transmission blueprint by the AEMO. Claiming to help payers save $378 on electricity bills by 2030. Experts somehow disagreed.
Experts stated that electricity prices, consumer prices and inflation may cause by unpredictable circumstances. Data shows that the recent power price hike was caused by high gas and coal prices, and the effect of recent outages and repairs to as much as one-third of the coal-fired power fleet. – The Russian-Ukrainian war’s significant effect on the worldwide cost of living.
Why Does the Russia-Ukrain War Affect Electricity Price When Australia Has its Own Coal and Gas Resources?
Australia exports enough coal and gas to meet its own energy needs, but it also relies on imported fuels. It is linked by supply agreements to export most of its fossil fuels, making Australia vulnerable to future global price shocks and supply disruptions.
When the Russia-Ukraine war began, it was unclear how much of an impact it would have on the energy market. Many energy companies were concerned about falling demand in Europe due to epidemics and slowing economies. When the economy started to recover, supply did not meet demand, so prices rose. Then, these increasing energy prices were significantly worsened by the Russia-Ukraine war when Europe rejected oil and gas from Russia, but no immediate alternative was available to replace Russia’s exports.
Can we expect electricity prices to drop in Australia in the short term?
Katja Ignatieva, an energy market expert from UNSW Business School, explains what customers and markets can expect next as Australia slides into a potential energy crisis. “In the short term, likely not. Medium to long-term yes.” Said Assoc. Prof. Ignatieva.
Retailers buy electricity from the wholesale market and sell it to businesses and households. When energy prices spike, these providers pay higher prices on the spot market, where the supply and demand are matched to purchase the power that they need.
Consumers pay a fixed price for power, regardless of spikes. But since the wholesale price spikes are occurring frequently in the current turbulent market conditions, eventually costs will get passed on to consumers in their electricity bills.
If retailers were able to hedge against price spikes, we would see a reduction in the energy bill. But the time delay between wholesale prices and electricity bills means that low prices are difficult to achieve in a short term. Hopefully, though, things will improve in the medium- to long-term as more renewable generation is introduced.
What More to Expect
The Federal Labor group’s “Powering Australia” is a plan with a vision for the future – a blueprint for action that shows how we can modernise the economy, and create new jobs, industries and business opportunities. This is a key step toward making Australia a “renewable energy superpower”.
The new Labor Government’s commitment to renewable energy is ambitious and promising. At the same time, most Australians are clearly in favour of it. Whether or not these targets will come into force, we must all take a stand to help the government and our country become a world leader in green energy production.
Can Renewable Energy Sources Decrease Energy Price Impact in Australia?
Assoc. Prof Katja Ignatieva also added that the adoption of renewable energy sources could help to reduce energy prices in the medium to long run. While renewable energy is impacting the profitability of coal plants, it is also a way to replace generation from major coal-fired power plants and reduce wholesale energy prices and energy bills for businesses and households.
Take Your Part In The Clean Energy Movement
The future of solar power in Australia is bright! Australia remains the leader in home-solar energy, in fact, 1 in 4 Australian home uses solar power. These millions of solar users across Australia are enjoying lower to zero electricity bills as well as lowering their carbon footprints which positively impacts the controversial topic of global warming.
Now is the Best Time to Go Solar
Thanks to technological strides and a current glut in the global manufacturing market, solar modules have dropped by more than 75% in the past five years. This impressive price drop means that the average size of a home solar system has more than doubled, increasing from 1 to 2 kilowatts (kW) to between 4 and 5 kW.
The sooner you buy, the sooner you save. While you may be tempted to hold off buying a solar power system until its prices drop even further, the sooner you invest in clean, renewable energy the sooner you’ll be able to start saving money.
Let Stag Electrical and Solar be Your Partner!
Stag Electrical Solar and Refrigeration is committed to giving the best service to Australian solar consumers while representing the industry at its highest level. At the heart of Stag Electrical’s mission is to contribute to the green energy transformation of Australia. We are offering the best solar deals to help you prevail over the challenges of inflation and increasing energy prices.
We help you design a solar energy system that is tailored to your energy needs, budget, and property. Use our solar calculator or get in touch with one of our solar experts, and we’ll provide you with a free quote.
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