In the second half of the twentieth century, Australia’s cheap, reliable electricity attracted heavy industry to our shores. By 1990, power-hungry copper, aluminium, lead, manganese and zinc smelters had popped up in each of the eastern states that would one day form the National Electricity Market (NEM). As Matthew Warren, former chief executive of the Australian Energy Council, the Energy Supply Association of Australia and the Clean Energy Council, describes the Australian grid:

In 2000, the coal and gas used were abundant and cheap, and the hydro was provided by rainfall. It was by international standards, about as cheap and reliable an electricity system as you could build. Its brutal simplicity, reliability and low cost had attracted global industries including aluminium and other processors. These were ‘the good old days’ of cheap and reliable electricity in Australia.

But trouble has been brewing in Australia’s smelting paradise over the last two decades, as rising energy prices, carbon charges and foreign competition have taken their toll. These forces have eroded the comparative advantage Australia once enjoyed, shuttering existing industries and dissuading investors from building new ones. Government promises of a ‘renewable energy superpower’ Future Made in Australia built on intermittent renewables, batteries and hydrogen are looking increasingly implausible. Read the paper here: https://www.cis.org.au/publication/future-no-longer-made-in-australia-how-we-lost-our-low-cost-electricity-advantage/