The CEO of Australia’s largest energy provider has called on the federal government to impose renewable energy targets in order to bring prices down for businesses and consumers.
Origin Energy boss Frank Calabria told ABC that investment could be disrupted without clear direction, and criticised changes in policy for diminishing confidence in the industry.
He said there was “every risk” that prices will go up after 2020 as coal starts to leave the system. The next cheapest way of producing power in the long term will be via renewable sources.
The country’s largest energy companies have already held discussions with Malcolm Turnbull regarding increasing supply in the east to help curb what believed to be a massive shortage in power.
Around the same time, Origin sold its major eastern gas subsidiary Lattice Energy to Beach Energy – a move it said was carried out to help reduce debt and streamline its operations.
Investment in clean energy is forthcoming despite Origin’s concern, with Tesla beginning construction on the world’s largest battery storage unit in South Australia, the province home to the world’s most expensive electricity.