The CEO of Origin Energy, Frank Calabria, has warned that Australia is not adequately prepared for the future as the country moves closer to a significant shift in its electricity grid. The upcoming decade is expected to bring major changes, as all remaining coal-fired power stations are set to close.
Calabria, whose company is Australia’s largest power and gas retailer, emphasized the challenges of managing a system that will rely more heavily on renewable energy sources. These sources, while cleaner, are less predictable, making it harder to balance the grid. Calabria stressed the importance of long-term planning and policy stability to manage this transition.
The federal government’s energy policy has focused on meeting 2030 targets, including a 43% reduction in emissions and a dramatic increase in renewable energy, with the share in the grid rising from 40% to 82%. To support this transition, the government has introduced the Capacity Investment Scheme, designed to boost funding for new renewable energy projects and backup energy sources, such as large batteries, through the end of the decade.
Calabria pointed out that more fast-response gas-fired power plants, known as “peakers,” are needed to help cover supply gaps during periods of low wind and sunlight. While some people oppose gas as an energy source, Calabria argued it is necessary to ensure reliable power as coal plants close. He said, “We need scalable, long-duration technologies that can operate for days.”
The Albanese government is expected to launch a review to assess post-2030 power market reforms. This review will explore options to compensate power generators for being on standby to supply the grid when needed, rather than only paying them for the electricity they produce.
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