Taxes and subsidies
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“Unconscionable:” Eraring delay could cost $150m a year, adding to massive Origin windfall, report says
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A delay in the closure of the massive Eraring coal fired power station in NSW could cost up to $150 million a year in taxpayer funds, and would be “unconscionable” given the massive handouts and windfalls enjoyed by its owner Origin Energy, according to a new report.
The 2.88 gigawatt (GW) Eraring power plant – the biggest in the country – is slated for complete closure in August 2025, but the NSW government is worried the state will be at risk of blackouts or price hikes if it does actually close at that time.
The new analysis from Climate Energy Finance says there will be no reliability gap, and the costs of keeping the plant open will equate to more than six times what NSW has spent in the past four years electrifying and solarising social housing.
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NSW may be forced to pay $150m a year to extend life of coal fired plant, energy expert predicts
The Guardian
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.
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OP ED | More coal subsidies to extend Eraring’s life unjustifiable
PV Magazine
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.
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Keeping the lights on at Eraring could cost taxpayers $150m per year
The Sydney Morning Herald
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.
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Eraring extension to cost taxpayers $150m per year
The Australian
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.
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OPINION | Community benefits from renewables can be locked in through local content requirements
Renew Economy
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.
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Community benefits can be captured in renewables projects through local content requirements
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A coalition including leading union, investor, energy, industry and First Nations peak groups today called on the federal government to embed requirements for locally produced and supplied components into all renewable energy supply chain manufacturing and development. A measured, considered local content requirement (LCR) in CIS tenders will support the domestic clean energy and technology supply chains to mature.
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VIDEO | Can Australia be a renewables superpower?
ABC 7.30
With Laura Tingle on ABC TV’s 7.30, Tim Buckley supports calls by Rod Sims and Ross Garnaut of The Superpower Institute for the federal government to leverage Australia’s generational opportunity be become a zero-emissions trade and investment leader – and for a Carbon Solutions Levy to invest in the clean energy transition.
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BlueScope ‘old’ blast furnace grant slammed by experts
The Australian Financial Review
Climate and energy experts criticised a $137 million federal grant to BlueScope Steel for a $1.15 billion upgrade of its Port Kembla blast furnace – extending coal-based steelmaking for two decades – as a missed chance to spur more ambitious carbon reductions.
The Climate Capital Forum, which represents investors, decarbonisation firms and policy experts, said that “while Australia procrastinates, developed world leaders are pivoting”.
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Green Steel Supply Chains are Australia’s Top Decarbonisation Opportunity
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Allocating taxpayer monies to support BlueScope Steel to invest $1bn to lock in high emissions blast furnace technology for the next 20 years is a missed opportunity according to Climate Capital Forum. Much stronger incentives are urgently needed to reduce – not support new – fossil fuel powered
production.
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Albanese’s pittance for critical minerals means Australia’s golden opportunity goes begging
Renew Economy
Our op ed on PM Albanese’s state visit to the US. While the visit was touted as a platform for major announcements on investment into an Australian response to the game-changing Inflation Reduction Act, there was a lot of talk, but only $2bn for Australian critical minerals – entirely insufficient relative to the scale of our opportunity to lead the world in processing of minerals onshore. Read our full analysis.
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Diesel fuel rebate our biggest fossil fuel subsidy. What’s the scam?
Michael West Media
According to a report released today by Climate Energy Finance (CEF), capping the diesel fuel rebate (the Fuel Tax Credit Scheme – FCT) would save $14 billion over 7 years. It could also help to kick-start a mining electric vehicle industry in Australia, including export opportunities.
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