Australian power crisis produces cooperation

Significance

Coal-fired plants are due to close in 20 years but still provide some 60% of Australia’s electricity. The new plan should attract more investment in the renewables sector, including battery storage, while reforms give the market operator expanded powers.

Impacts

• New gas projects may be needed in order to maintain output as renewables are integrated into the grid.
• Canberra will have to ensure enough economic opportunities for coal-reliant regions to forestall a backlash over job losses.
• Gas producers could face a windfall tax or export curbs as the government responds to supply gaps.