Australian entrepreneur Dick Smith has launched a fierce attack on the government’s renewable energy agenda, accusing Energy Minister Chris Bowen of overstating the reliability of wind farms.
In a full-page newspaper ad, Mr Smith singled out Bowen, arguing that once the cost of battery storage is included, wind and solar power become prohibitively expensive, pushing electricity prices beyond the reach of most households.
Using the proposed offshore wind farm off the Illawarra in New South Wales as an example, he claimed the necessary battery backup would cost $73 billion and last just 1.5 days during a wind drought.
‘This would make electricity totally unaffordable,’ he said.
While stressing he supports renewable energy, Mr Smith argued it will only be viable if paired with large-scale storage, which he insists is currently unaffordable.
As evidence, he pointed to the $400 million Big Canberra Battery project, which he said would power the city for only 40 minutes, and Tesla‘s Adelaide ‘super battery.’
‘It cost $90 million and it can run Adelaide City for seven minutes,’ he said.
Australian entrepreneur Dick Smith (pictured) has sounded the alarm on the cost of renewable energy
Dick Smith placed a full page advertisement in The Australian
Power-generating wind turbines are seen at the Collector Wind Farm 50km south of Goulburn
‘The problem is storage is going to be incredibly expensive.
‘Batteries have been coming down in price, but they need to come down at least 10 times in price to be to allow us to afford the electricity from solar, wind and batteries.’
The controversial offshore wind farm will span 93km south of Sydney, covering some of Australia’s most picturesque coastline.
Energy Minister Chris Bowen has claimed it will generate up to 2.9 gigawatts of reliable renewable power, enough to supply 1.8 million homes.
But Mr Smith rejected that claim.
‘When there’s no wind blowing, it won’t provide power for one home,’ he said.
The project has faced opposition not only from renewable energy critics but also from environmental groups concerned it could disturb seabirds and migratory whales.
However, the 2024–25 GenCost report released last month by CSIRO and AEMO concluded that renewables remain the lowest-cost and most practical option for replacing Australia’s ageing coal-fired power stations.
A controversial wind farm stretching along some of Australia’s most scenic coastline was given the green light by Albanese government earlier this year
Australian Energy Minister Chris Bowen (pictured) speaks to the media in front of Home Battery systems during a visit to SolarHub in Canberra
The Albanese government has previously ruled out pursuing nuclear energy.
Mr Smith rejected the idea that clean energy is cheaper.
‘In South Australia, where they’ve now got to 70 per cent on average over the year, in renewables, their electricity is double what we pay in Sydney,’ he said.
‘In Sydney, it’s about 25 cents a kilowatt hour.
‘In South Australia, it’s 50 cents a kilowatt hour. So just getting to 70 per cent they’ve doubled the price for consumers.
‘For us to go to high levels of renewables is going to be mind-alteringly expensive.
‘Poorer people are going to suffer. Small business will close down. It’s just too expensive.’
Clean Energy Council general manager of advocacy and investment, Anna Freeman, dismissed Mr Smith’s claims as ‘misleading.’
She argued that, compared to nuclear and other emerging technologies, renewable energy remains more affordable,even when storage and transmission costs are included.
‘Wind and solar power are now the cheapest forms of new electricity generation in Australia, even when combined with firming technologies such as batteries, pumped hydro and gas peaking plants,’ she said.
She added that Mr Smith’s argument misunderstands how the energy grid functions.
‘The suggestion that a single battery should back up an entire offshore wind farm for multiple days is a fundamental misunderstanding of how the electricity system operates.
‘The grid draws on a mix of generation sources and storage spread across the network, ensuring reliability while keeping costs down for consumers.’