Construction Boss Identifies Numerous Problems With ‘Junk’ GenCost Reports
The director of McCoskers Contracting stated that GenCost reports were unreliable, labeling them as “a load of junk” due to various issues identified with the reports.
GenCost reports, created by the CSIRO and AEMO, offer insights into electricity generation and storage costs in Australia, often used as a reference by government agencies and ministers to support renewable energy policies. However, energy experts have raised concerns about the accuracy of these reports.
According to the latest GenCost report, solar and wind technologies were the most cost-effective options for newly built electricity, while nuclear technology was the most expensive.
During a recent inquiry hearing on nuclear energy, Bob McCosker, the director of McCoskers Contracting with four decades of industry experience, criticized the reliability of information in GenCost reports. He specifically highlighted the disclaimer at the beginning of the report.
The disclaimer states that the information in the publication is based on general statements from scientific research, cautioning readers that the information may be incomplete or inadequate for specific situations. McCosker emphasized that this disclaimer indicated that the reports were unreliable.
Despite the flaws pointed out by McCosker, the government continues to use GenCost reports to promote renewable energy policies, which he described as forcing “this piece of junk” onto the public.
Cost of Installation vs. Cost of Energy: Director’s Concerns
Another issue raised by the director was that GenCost reports focus on the installation costs of energy sources without indicating the cost of energy production. McCosker highlighted the lack of correlation between installation costs and actual power costs.
Furthermore, he criticized the reports for failing to account for subsidies to renewable projects and agreements between the government and international investors.
Australian Nuclear Science and Technology Organisation former CEO Adrian Paterson supported McCosker’s remarks, emphasizing that GenCost reports overlook crucial system costs such as grid extensions and maintaining electricity frequency.
Australia’s Energy Future: Director’s Insights
McCosker emphasized the importance of addressing the growing energy demand in the coming years and the necessity for a pragmatic discussion on energy supply in Australia. He highlighted the need to triple coal-fired generation to meet the escalating energy demands driven by electric vehicles and AI technologies.
Additionally, he pointed out the shift towards nuclear power by global tech companies like Amazon and Google, suggesting that Australia should follow suit to meet its energy needs.
