The Road to Prosperity Lies in Collective Action

Ana Spataru

Right now, Australia is buzzing with debates and commentary about the energy transition. Almost every day, there's a new story, whether it's a government commitment, a news report, or a reminder of high winter energy bills. All this is compounded by the cost of living crisis. While that is driven by other structural problems in Australia, it is not in small part because of higher energy costs. When power prices rise, so does the cost of every loaf of bread, every train ticket, every family grocery shop and everything else in the economy.

For this very reason, inevitably, the energy sector has come into sharp focus. Being a transition to a different kind of power system, it was bound to be messy. But it doesn't need to be and how we adjust our lenses might very well mean a different outcome for Australia.

The energy transition is important for anyone not just on matters of affordability but also something more important - that is prosperity. Affordability is a focus on the short term, whereas prosperity focuses on the long term.

The reality is that the power plants that fueled Australia's golden age are nearing the end of their lives. For example, power stations in Yallourn have been producing energy from the adjacent coal mine for 100 years. Electricity was first transmitted to Melbourne from the first power station in 1924. The only remaining one (Yallourn W) was built in the 1970’s so is more than 50 years old, and the mine will soon be exhausted. Other power stations have a designated lifespan of up to 60 years, which is a very long time for such mechanised equipment. They have served Australia well and allowed us, as a collective, to prosper. Since the heyday of coal, around the western world the social licence of coal is simply not there any longer. And also the financing is not there any more, mainly driven by the very knowledge that coal is warming the planet and we need to make sure we don't reach the point of no return.

In simple terms, we need to replace the retiring power generation capacity with new sources and in Australia, renewables are our best bet. Remember also that there is no economic prosperity without reliable energy production and stable prices.

One thing that struck me during a recent overseas trip is that much of the debate around renewable energy in many Western countries, including Australia, is framed as something only “good people,” “environmentalists,” or “greenies” care about. It’s exhausting to watch both sides of the debate continually throw accusations about the other camp. But ultimately renewables are a form of energy, not a moral high ground. To go back to my travels, in Turkey 40% of energy comes from renewables, mostly wind energy. What shifted my perspective was seeing wind farms built beside gas plants, along highways, and on hills overlooking cities. Australia and Turkey might not have a lot in common in the way of governance but they both need affordable energy to prosper.

And ultimately we come to the most democratic and decentralised form of energy, something Australia is blessed with more than any other country – rooftop PV. Initially, many of the solar panels installed on houses were by those more affluent and environmentally conscious. But once rooftop solar became more widely accessible, it was installed by households and businesses as a way to reduce bills and provide more energy independence. Now we are in a world where so much rooftop solar is produced each day that we need to invest in household batteries and there is no shortage of incentives from the different tiers of government. And we are now installing rooftop PV and batteries, including community batteries, with renewed enthusiasm.

Somehow we accepted small scale renewable energy production more readily than large scale, despite being the same technology. Perhaps the personal benefits played a bigger role than community and wider economic benefits. But what I also think happened is that the very foundation of community has been eroding in Australia and individualism has become the default. Perhaps, as a society we forgot what being united means, what sacrifice for future generations means. I think it's time to reignite those values because we have the opportunity to leave a prosperous legacy behind.

As we stand at the crossroads of energy transition, we don't face a technical challenge but a deeply human one. This is our moment to come together. And if we do, the future won’t just be brighter, it will be one that we can all be proud to leave for future generations and make sure our choices - or lack of - are not driven by ill-informed ideology.