Australians generally benefit from low prices for coal-fired electricity. Cheap electricity is something we’ve become accustomed to; but is it really cheap? There’s a slew of hidden costs that don’t show up on electricity bills, but in taxation.
Until more recent times, much of those tax enshrouded coal related costs had more to do with subsidies the industry enjoys, but there’s a much larger cost developing. The direct impact that the mining of coal has on our environment is one. The impact of burning fossil fuels on our atmosphere which in turn affects the environment through climate change and severe weather events is another costly and more ominous issue.
How much do these factors tack onto the price of electricity? The Wall Street Journal has drawn on data from Europe that suggests external costs in power generation could be adding an extra AU 13 – 24 cents per kilowatt hour. Even low emissions coal, according to the Australian Coal Association’s New Generation Coal site, will add 50 to 75% on current power generation costs.
That being the case, the case for a phase out of coal and a increased uptake of solar power and wind energy becomes even more attractive and within Australia’s means. With the external costs of coal fired electricity factored in, clean power from renewable sources suddenly doesn’t look so expensive. The technology is there and the people of Australia certainly seem keen to support it. Now it’s just a case of the political will needed to truly embrace renewable energy.
A switch to a solar Australia can be made rapidly, not just through the implementation of small and large solar farms and the infusion of solar power in current coal fired plants, but also a decentralising of power generation via grid connected solar power systems on the rooftops of homes throughout the country; financed in part by government rebates and, more importantly, a gross feed in tariff.
A new approach to the way the nation predominantly generates electricity will not only benefit the environment and big business, it will make it everyone’s business.
