The federal government has all but resolved to build a gas-fired power station in the Hunter Valley. It could help the Liberals/National coalition win the seat from Labor. But the 'official' reason would be because of the rising perception that the private sector will not fill the electricity generation gap to be created when the Liddell coal-fired plant closes in 2023.
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Because of this, it is increasingly likely the federal government, through its company, Snowy-Hydro, will have to make good on its threat to build its own plant.
ScoMo's government seems to be deliberately acting in a manner contrary to all sensible scientific advice.
Building gas or coal-fired power plants flies in the face of all the evidence of what is urgently needed to reduce our carbon emissions to combat climate change. ScoMo's government seems to be deliberately acting in a manner contrary to all sensible scientific advice.
Energy Minister Angus Taylor even accused his NSW counterpart, Matt Kean, of scaring away the private sector, reported Phillip Coorey in the Australian Financial Review.
When launching his gas-led recovery in September last year, Prime Minister Scott Morrison said the Commonwealth would step in and build a new generator to provide up to 1000 megawatts of dispatchable power should the private sector not outline firm investment plans by the end of April.
Subsequently, EnergyAustralia proposed a 300MW-400MW gas-fired Tallawarra B gas-fired generator, and AGL proposed a 250MW gas peaking station in Newcastle as well as a giant battery at Liddell. But both plans were paused after Taylor's NSW counterpart Matt Kean legislated his own energy plan late last year. It involved underwriting large-scale renewable energy projects.
Concerned about the viability of their proposed projects, EnergyAustralia and AGL have been in talks with the NSW government.
"The government has always said that if the private sector didn't step up, then the government would step in and Snowy-Hydro's gas plans are part of our response," said Energy Minister Angus Taylor.
Mr Taylor urged Mr Kean to underwrite the gas projects, disingenuously arguing that renewables would not provide the dispatchable power needed when Liddell closed.
Mr Kean has said previously he did not believe gas was the future, but the NSW government did deem the proposed Kurri Kurri station as "critical" state infrastructure.
Even if one of the private sector projects goes ahead, it is still likely the government will build a station at Kurri Kurri.
Mr Taylor said: "We had confidence that the 1000 MW target would be met by both the private sector and through the proposed gas generator at Kurri Kurri.
"However, since the release of the NSW government's energy road map we have seen energy companies put proposed investments in new dispatchable capacity on hold."
Climate change denialist though Angus Taylor is, he pales in comparison to his coalition Nationals party members. They are continuing the coal push.
For the row described above comes as federal Nationals backbenchers, led by Queensland Senator Matt Canavan, outlined a plan to rejuvenate manufacturing which included the government building a coal-fired power station in the Hunter.
This is a clear indication the Nats have their eye on the Labor seat.
Spreading misinformation in a manner worthy of Donald Trump, Senator Canavan said with gas prices on the march again, coal, which was in abundance in the Hunter, would provide more stable prices over the medium term.
He said it would be "folly" to rely on gas to underpin cheap energy for manufacturing and households when its price was so volatile.
"Gas prices can swing wildly. We've got the coal right there," he said.
"We know exactly what it costs. We can provide price certainty for a decade," reported Crikey.com.
Labor MP Joel Fitzgibbon, who holds the seat of Hunter and wants the ALP to adopt a more conservative climate policy, said: "I would welcome the arrival of an investor willing to invest approximately $3 billion in an efficient coal-powered electricity generator in the Hunter".
Thankfully, that's not likely to happen. Unfortunately, a Morrison government-built gas power plant is. To the detriment of the climate of course, and many life forms here on earth.