Energy costs to soar under renewables push

Thursday 6 March 2025

The federal Labor Party announced its Powering Australia Plan in late 2021, promising to cut National Energy Market (NEM) wholesale power costs by $11 per MWh, from $62 to $51, by 2025.

Labor bragged that its Powering Australia Plan will save Australians $275 on residential electricity bills in 2025 and $379 in 2030.

According to AEMO, the average cost of producing power across the NEM in Q4 2024 was $88/MWh, 72% higher than the $51 figure promised by Labor.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.