Alex Turnbull, son of former PM Malcolm Turnbull, says the federal government’s energy policy chaos is bad news for consumers.
Now a Singapore based hedge fund manager of his own firm, Turnbull previously spent five years working at Goldman Sachs trading in energy company assets.
In an ABC interview with Emma Alberici, Turnbull reflected on the way energy policy has created cycles of “mania and panic”. He said that while uncertainty is bad for consumers, it’s “great for hedge funds”, admitting that he has made a lot of money from the cycle of indecision.
Turnbull: investing in coal is foolish
When asked if the economics of new coal-fired power stations stacked up, Turnbull replied “absolutely not”. He said new coal would lead to much higher prices than for renewables.
New coal would also face other risks, according to Turnbull. These include future carbon policies, reputational damage for lenders and investors, cost overruns and a high variability in wholesale electricity prices.
New plants would also face long delays coming online if history is anything to go by, Turnbull added.
Turnbull’s frank opinion of Australia’s energy policy chaos
Turnbull has had a few things to say in the media lately. Now that his father is no longer PM, he considers himself a “free agent”. His recent comments include:
- There is no conflict between decarbonisation and reducing power prices. This is because renewables, such as wind, solar power and hydro, are lower-cost sources of energy than coal. Turnbull described it as a “mistaken idea” to say that the two are at odds with each other.
- Pulling out of the Paris Agreement would be a pointless act right now.
- Coal owners in Queensland’s Galilee Basin have been exerting “undue influence” over the Liberal Party’s energy policy.
- Efforts to keep ageing coal-fired power plants open would be a “terrible failure”. It would be akin to keeping old cars on the road.
While investing in coal could keep coal workers employed, Turnbull indicated there could also be new jobs created by building wind and solar energy farms.
The same could be said for rooftop solar installations, as these also create job opportunities in the energy sector.
“At some point, we’ve got to decide whether we want to invest in things which have a brighter future and a longer-term prospect,” he said.
