Media

New South Wales may end up paying $150m a year to subsidise the extension of Australia’s biggest coal-fired power plant, money better spent accelerating the take-up of rooftop solar with storage, the energy analyst Tim Buckley has said. Read more

For Climate Energy Finance’s latest report on Eraring we reviewed available data to estimate that to keep all four generation units of Eraring open beyond 2025, NSW electricity users would bear the brunt of yet another coal subsidy of a minimum $120-150 million (USD 78.3-97.99 million) annually. NSW consumers are already funding Origin an estimated $468 million, since the government introduced measures in December 2022 to cap the price generators would pay for coal, a response to fossil fuel hyperinflation resulting from sanctions on Russian exports after its invasion of Ukraine. This represents nearly half-a-billion dollars of public money already sunk into the energy giant. Read more

NSW taxpayers could be on the hook for as much as $150 million a year for every year the Eraring coal-fired power plant remains open, energy analysts predict, with the Minns government refusing to detail the terms of its negotiations with owner Origin Energy ahead of a likely extension beyond 2025. Read more

In Canberra Times via AAP and syndicated to 100+ mastheads: Origin Energy has been in talks with the state government to extend the life of its Eraring plant, located south of Newcastle, after a review warned the scheduled 2025 closure would result in electricity shortfalls and price hikes. NSW officials are yet to confirm how long the plant’s life could be extended or how much it will cost. But analysis by independent think-tank Climate Energy Finance, released on Thursday, found keeping the plant open past 2025 could cost between $120 million and $150 million per year, paid to Origin to subsidise the extension. Read more

Extending the lifespan of NSW’s largest coal-fired power station would cost taxpayers between $120m-$150m a year, a report from a renewable energy think tank has concluded. Read more

Longi founder Li Zhenguo is laying off thousands of staff in an industry grappling with oversupply The solar industry is cyclical, resulting in periods of boom and bust. Analysts have warned that massive job cuts across the industry are inevitable after several years of excessive focus on output rather than on sustainable profits. Xuyang Dong of Climate Energy Finance, an Australian think-tank, noted that at of the start of this year, China had more than 1,000GW of solar module production capacity in development for domestic and international markets, a far higher amount than current domestic demand. China needs around 280-320GW of new solar capacity a year until 2030 to reach its dual carbon targets. “The amount of money saved by laying off staff is insufficient compared to the 40-50 per cent decline in prices in the market over the last 12 months,” she said. Read more

The Australian Energy Market Operator (AEMO) has issued what is becoming a routine annual warning of potential future gas supply shortages in Australia, with the release this week of its latest Gas Statement of Opportunities (GSOO). Tim Buckley, the founder and director of Climate Energy Finance said “Why does AEMO have gas use in the power system actually higher in 2040 than they do today? “That’s the gas industry giving the most optimistic view that they can about the future of their industry, and it’s just not going to happen. “AEMO is still failing to understand the massive structural shift of scale and scope for batteries – including of utility scale, behind the meter and in electric vehicles for V2G, plus grid orchestration – to permanently diminish the need for gas peakers, which play a small, critical but diminishing role in grid firming, particularly in season peaks in winter. “We have AEMO doing a gas statement of opportunity that ignores the obvious opportunity, which is to electrify everything and reduce demand.” Read more

Opinion piece from energy leader Danny Kennedy from New Energy Nexus on the opportunity for Australia for invest onshore in battery processing. “Time and again we are faced with this frustrating lack of both vision and understanding of the context, scale and urgency of the task before us. Australia produces over half of the world’s lithium yet retains less than 1% of the profit that lithium eventually delivers in final products of batteries and EVs. Why not invest in manufacturing batteries onshore? It’s a sector ripe for scaling, something we’re told time and again that we can’t do. Why?” Read more

A coalition of business, union, First Nations and community groups are calling for local content requirements to be built into tenders for the Capacity Investment Scheme. A measured, considered domestic content stipulation in CIS tenders will support domestic clean energy and technology supply chains to mature. It can be a valuable tool that underpins investor confidence both into and by Australian companies. Read more

Tim Buckley is director of Climate Energy Finance, a public interest think tank. He said more action could be taken to further lower energy prices in the meantime. Buckley suggested some ways that electricity bills could be lowered while also helping Australia achieve its necessary net zero targets. For example, he mentioned induction cooktops and water heaters and these aspects can really reduce the cost of living pressure and permanently alleviate these problems through accelerated deployment. That means getting away from the high, expensive methane gas that Australia has been addicted to for the last 30, 40, 50 years. Buckley believes there must be a coordinated government campaign to help consumers get through this cost-of-living crisis. Read more

“[Gautam] Adani continues to walk both sides of the street,” said Tim Buckley, director of Sydney-based think tank Climate Energy Finance. The Adani Group is not only one of the largest developers and operators of coal mines in India, but also operates the controversial Carmichael Coal Mine in Australia, which has faced fierce opposition from climate change campaigners who say it is a “death sentence” for the Great Barrier Reef. “Rather than ploughing billions into new fossil fuel projects, India would be far better served if Adani put 100% of its efforts and resources into developing low-cost zero emissions technologies,” Buckley added. Read more

Many Australians could see a reduction in their energy bill prices, according to an announcement made by the Australian Energy Regulator. Yet despite the highly anticipated relief for households, experts say the government could be doing more to lower energy costs during the transition period to cleaner energy. Read more