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Labor's energy pathway will 'overbuild' and 'overspend'

The article from MSN discusses the Australian Labor government's energy policy, which has been criticized for potentially overbuilding renewable energy infrastructure and overspending. The policy aims to transition Australia towards 82% renewable energy by 2030, involving significant investments in solar, wind, and storage solutions like batteries and pumped hydro. Critics argue that this approach might lead to an excess of capacity, resulting in higher costs for consumers due to the need for subsidies and the risk of stranded assets. The government's plan includes the Capacity Investment Scheme (CIS), which guarantees revenue for renewable energy projects, potentially encouraging overinvestment. There are concerns about the economic efficiency of these investments, with some experts suggesting that the focus should be on market-driven solutions rather than government-led initiatives, which could distort the energy market and lead to unnecessary expenditure.

Read the Full MSN Article at:
[ https://www.msn.com/en-au/politics/government/labor-s-energy-pathway-will-overbuild-and-overspend/ar-AA1vVOed ]