STEVEN SORBELLO: OFFICE MANAGING PARTNER, BDO, BRISBANE

The health of our economy, a successful Olympic Games and the prosperity of business and consumers more generally depends on reliable energy and water supply, and flood protected cities.

On the energy front, Queensland’s energy markets are experiencing challenges brought on by coal and gas prices and the balancing of system availability and security to accommodate decarbonisation policies, amongst other things. Driven by pressures to move away from fossil fuels and the political desire to balance competing agendas, we are now seeing a rise in costs for both households and businesses.

If these challenges are left unaddressed, they will threaten Queensland’s energy security, continue to increase costs to consumers and business, and impact on Australia’s ability to meet its emissions reduction targets. In this country, many argue that the energy equation should be relatively easy, but leadership is required from all levels of Government to restore confidence.

In relation to water, we have watched large amounts of water being released from Wivenhoe Dam to ensure temporary additional flood mitigation storage for summer. This suggests that our systems are struggling to cater to our current water supply and flood mitigation requirements and that, particularly considering recent flood events, the time is right for definitive action to ensure we can meet future needs.

To gather relevant information to assist with our decision making we must also look further afield and learn. Europe is experiencing what may be its worst drought in 500 years. The drought has arrived amid an energy crisis, and the lack of water threatens to make the energy shortage worse. The invasion of Ukraine demonstrates Europe’s dependence on Russian gas and showed that energy supply chain diversification is crucial. Europe must now double down on efforts to become self-sufficient in energy while balancing a reduction in emissions.

To address the energy crisis in Australia, all levels of government must play to provide much needed objective guidance and design a solution that
will protect the energy market and water supply, facilitate fuel switches, and place our businesses and consumers in the best possible position to prosper. Self-sufficiency and diversification of energy and water supply, as seen in Europe, must be a focus of any solution.

Queensland is on show. The Brisbane 2032 Olympic Games should give us the incentive and sense of urgency to get this much-needed energy and water reform right.