Australia’s Stand On Renewable Energy

Running Head: AUSTRALIA’S STAND ON RENEWABLE ENERGY
Australia’s Stand On Renewable Energy
Name of the Student
Name of the University
Author note

1AUSTRALIA’S STAND ON RENEWABLE ENERGY
Table of Contents
Introduction......................................................................................................................................2
Brief story of the article...................................................................................................................2
Economic Analysis..........................................................................................................................3
Free market..................................................................................................................................3
Subsidy in the energy market......................................................................................................4
Recommendation.............................................................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

2AUSTRALIA’S STAND ON RENEWABLE ENERGY
Introduction
The source of resources that can be naturally replenished are known as the renewable
energy sources. In contrast to exhaustible energy sources renewable energy sources provides a
secure energy supply for future. Realizing the increasing pressure on energy demand, Australia
has shifted its attention from exhaustible sources to renewable ones. Some common form of
renewable energy sources used in Australia are solar power, hydroelectricity, bio mass, wind mill
and such others (Twidell and Weir 2015). In order to meet more and more demand with
renewable energy demand the government has set clean energy target and provide heavy
subsidies to the energy plants.
Brief story of the article
Power generation from renewable energy plants is costlier than that of any traditional
power plants. For this, government provide subsidies to the new generation power plants to curb
their cost. Josh Frydenberg, famous politician of Australia however stands against government
support in power generation. In a recently published article of a daily new paper ‘The
Australian’, he has claimed that power generation should be handled in a free market. In order to
meet the target of renewable energy Australian household on an average pays $60 a year. The
accumulated cost is estimated to lie between $20 bn and $30 by 2030 (theaustralian.com.au
2018).
The Turnbull government has declared that no subsidies will be paid to coal fired plants.
The energy minister repeated his warning against conservative policies arguing that such policies
are not consistent with right wing ideology. Any further intervention in the power market is thus
expected to lead to further inefficiencies in an already failed market (theguardian.com 2018).