The closure of uneconomical coal plants will reduce competition and supply in the short-term, but rather than wasting money prolonging their life, Australia needs a plan to balance the exit of coal with new sources of energy in the next few years. It must allow Australian energy companies to increase renewable power and back it up with batteries and, where necessary, “peak” gas plants that can be turned on and off quickly.

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The Albanese government’s plan to invest $20 billion in new high-voltage transmission lines is a part of this process since it will guarantee that the new power sources can reach consumers at a reasonable price.

It will take a few years for these investments to bring the grid back into balance. Meanwhile, governments should offer targeted help to families facing temporary power price rises. NSW, for example, just increased its Energy Accounts Payment assistance for people in serious financial hardship.

The dramatic shift in our energy grid out of coal and gas will create huge challenges, but renewables are not the cause of the problem. They are part of the solution.