Media

“Leaked reports today that the NSW Electricity Supply and Reliability Review will recommend taxpayer subsidies to extend the life of Eraring coal power station beyond its closure date phased over 2025 would be a massive retrograde step when the exact opposite is needed – implementation of an accelerated transition to firmed renewables, Mr Buckley, who wrote the The Lights will Stay On report, said. Read more

It comes as clean energy investors and the former NSW energy minister Matt Kean blasted the proposal to keep Eraring open beyond 2025. Simon Corbell, the chief executive of the Clean Energy Investor Group, said delaying the closure of Eraring would create “significant downside risk for investors”. “This could result in less investment in new clean energy projects in NSW and will blow out our emissions target and budget. Australia cannot afford to have that at this time,” he said. Read more

Energy groups such as Climate Energy Finance, a think tank that advocates for a speedier transition to renewables, are critical of the proposal. A report by CEF in July estimated that keeping Eraring open at only half of its capacity would require the NSW government to pay Origin between $200 million and $400 million a year in subsidies. Read more

Eraring is Australia’s largest greenhouse gas emitter, releasing more than 12 million tonnes of CO2 equivalent into the atmosphere each year. Tim Buckley, director of think tank Climate Energy Finance, says keeping the plant running would be a “massive retrograde step”. Read more

Environmental activists point out that paying hundreds of millions of dollars a year to keep Eraring open is not needed, and that two reports – including “The Lights Will Stay On” by the Climate Energy Finance and “Earing can be closed on schedule” by Nexa Advisory – outline why and how Eraring should close on time. Read more

Clean energy investors said delaying the closure of the generator could crimp new investment in new clean energy projects and blow out Australia’s emissions target and budget. “Australia cannot afford to have that at this time,” said Simon Corbell, chief executive of the Clean Energy Investor Group, representing investors with about 11 gigawatts of installed renewables capacity. Read more

Tim Buckley said: “Application approvals of new zero-emissions replacement capacity in FY2023 trebled to 7 gigawatts (GW) vs the previous two years, but we are still not seeing grid transmission and planning access bottlenecks removed. There is a record 30GW of new renewable energy capacity now in the connection pipeline, but just 3GW was completed in FY2023. We need to see the rate of completions double to replace end-of-life coal power station capacity inevitably and predictably coming offline.” Read more

AEMO reports the June quarter wholesale electricity prices are down 59 per cent year-on-year. That is a major relief after 18 months of unprecedented fossil fuel hyperinflation,” Tim Buckley said. Read more

Hunter communities undergoing unprecedented social and economic upheaval due to the clean energy transition would be the main beneficiaries of a progressive coal royalty system, Tim Buckley argued. The NSW government is investigating increasing mining royalties as part of an effort to boost the state’s bottom line when the temporary cap on coal prices implemented to curb soaring electricity prices expires. This could involve the introduction of progressive royalties, which would require coal companies to pay more as the coal price increases. Read more

CEF’s report into NSW’s energy transition last week recommended the state use social housing and other government-owned buildings to build a steady pipeline of solar-panel “power plants”. Report author Tim Buckley said solar could replace half of the capacity lost when NSW coal-fired power stations Eraring and Vales Point retire in 2025 and 2029 respectively. “It requires next to no grid upgrades, so no cost-of-living pressure, and it can be done really bloody quickly.” Read more

At the beginning of June, the Toxic Bonds initiative collected evidence that confirms that funding into Adani Green Energy is being redirected, through collateralisation and related party transactions, to other Adani Group entities directly responsible for coal expansion projects. “Any so-called green investment in Adani Green directly supports the wider Adani Group to be the world’s largest private coal mine and coal power plant developer,” says Tim Buckley. Read more

Tim Buckley says there are more than enough renewables investment proposals in the pipeline to offset coal closure and deliver lower prices, but we need the NSW government to expedite approvals processes and support the scaling of rooftop solar to bring capacity online. Read more