Counting the costs of Australian energy policy

Monday 23 February 2026

Former Treasury official turned director of Macroeconomics Advisory, Stephen Anthony, is one of the few economists who understands the pitfalls of Australia’s transition to an all-renewable energy future.

Anthony penned an article in the Daily Telegraph warning that the foolhardy push to close down Australia’s stable, baseload coal power for intermittent, weather-dependent renewables will drive up costs and make Australia’s energy system less reliable, ultimately driving industry offshore, reducing productivity growth, and harming living standards.

Anthony says that to replace 23 GW of coal, Australia will need:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.