Businesses must brace for 'expensive' energy transition

Australian businesses have been warned to expect power bill pain on the path to net zero as industry and energy leaders call for policy continuity.

Hundreds gathered in Melbourne on Friday for an event hosted by the Victorian Chamber of Commerce and Industry to discuss the nation's journey to reach net-zero emissions by 2050.

Victorian chamber chief executive Paul Guerra urged the business community not to sit quietly as energy costs rose amid the transition to renewables.

"Do not presume that others will beat the drum," he told the crowd at the Melbourne Convention and Exhibition Centre.

"Call out the bulls*** and call out the ideology. 

"This isn't a game - this is our future. 

"Reliable energy at affordable prices must be our aim."

As the debate heats up federally over the viability of adding nuclear to Australia's energy transition mix, Mr Guerra said he was not up for an ideologically driven conversation.

"If the government cannot guarantee that the lights remain on in this state, then I can guarantee that many businesses will find places other than Victoria to set up, and that is not what we want," he said.

"In our view, every resource should be considered."

Victorian Chamber of Commerce CEO Paul Guerra
Victorian chamber chief Paul Guerra says gas has been much-maligned as a transition energy source.

Federal Climate Change and Energy Minister Chris Bowen, who has labelled the opposition's nuclear push a red herring, addressed attendees in a pre-recorded interview.

State counterpart Lily D’Ambrosio was also absent, with parliamentary secretary for climate action Sheena Watt sent instead.

Mr Guerra said gas had been much-maligned as a transition energy source but the state government's approach was softening.

"When I met with the minister this week she was very clear in her thoughts and the plan that gas will play a role," he said.

Richard Bolt, a founding steering committee member of Net Zero Australia which produced a detailed analysis of pathways to the target, agreed gas was key.

"We have to be prepared to walk down the track of using things that might sound like a compromise but actually enable us to get there," he said.

Mr Bolt advised the NSW government on the state's electricity infrastructure road map.

He cited the Minns Labor government keeping the essence of the NSW road map developed by the Perrottet Liberal government as an example of mature policy-making.

Cars on a road
EV sales in Australia are still "lagging" the rest of the world, Origin Zero's Chau Le says.

"That is something that I would have thought the business community would be asking for because it has to invest in long time frames, and I would say the same for households," he said.

Banksia Strategic Partners' head of energy and social impact Elyse Gatt said businesses must come to terms with renewable energy being "more expensive" but stressed there would be pay-offs on the other side.

"At the moment, the broad thinking is renewable equals cheaper," she said.

"During a cost-of-living crisis, it's not a great time to be talking about this but it does need to be socialised more."

The transport sector must also start pulling its weight or it will go from the country's third-largest emission source to the largest, Origin Zero's general manager of eMobility Chau Le said.

Electric vehicle sales in Australia were still "lagging" the rest of the world despite more than doubling in the previous 12 months, she said.

Ms Le blamed the slow EV uptake on a "policy vacuum" at the national level before the Albanese government, leaving states to do much of the heavy lifting.

"But now with the national EV strategy, with the new vehicle efficiency standard, with the FBT (fringe benefits tax) extension for EVs, we are really seeing the results," she said.

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.


Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
AU$10
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
AU$5
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
AU$99
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

SEVEN DAYS FREE
Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store