Less storage would mean less cost. Grattan Institute’s analysis suggests that the total cost of building the additional fuel storage required under the federal government’s proposed increase to the Minimum Stockholding Obligation is nearly $17 billion.
But targeted demand-reduction could save consumers and taxpayers nearly $4 billion, mostly through avoided capital costs.
So before committing to billions of dollars of additional expenditure, the government should consider demand-reduction policies to reduce the need for fuel storage in the first place.
Alison Reeve
Energy and Climate Change Program Director
Alison Reeve is the Energy and Climate Change Program Director at Grattan Institute. She has two decades of experience in climate change, clean energy policy, and technology, in theprivate, public, academic, and not-for-profit sectors.
Hamish McKenzie
Energy and Climate Change Deputy Program Director
Hamish McKenzie is the Deputy Program Director of Grattan Institute’s Energy and Climate Change program. With diverse experiences across academia, the electricity sector, and policy, he brings a practical approach to his work at Grattan.
Hayley Pring
Senior Associate
Hayley Pring is a Senior Associate in Grattan’s Energy and Climate Change Program.