Need for new coal-fired power plants based on a lie

Commenting on Planning Minister Tony Kelly’s approval of the concept plans for 2,000 MW power plants at Mt Piper near Lithgow and Bayswater in the Upper Hunter, Dr Kaye said: “NSW does not need more baseload electricity generation to keep the lights on.

“The Owen inquiry was manufactured by the Iemma government to justify its privatisation agenda. The exaggerated claims of generation capacity shortages have been completely discredited.

“The latest data from the Australian Energy Market Operator (AEMO) shows that NSW has sufficient baseload capacity for reliable supply beyond 2016.

“It is highly improbable that Mt Piper will be gas powered given the distance to the nearest pipeline and the costs of connecting up supply.

“Even Bayswater is much more likely to be coal-fired. Risks of substantial price rises resulting from an East Coast gas export terminal will make gas a much less attractive fuel, even if the Senate passes the Rudd government’s highly ineffective Carbon Pollution Reduction Scheme.

“Coal-fired stations will increase the state’s greenhouse gas emission by 15.1 per cent and gas by 7.1 percent.

“This is an unacceptable increase to the state’s burden on the climate.

“The Keneally government is turning NSW into an international greenhouse pariah.

“The future of jobs in the clean energy industry has been dealt a savage blow.

“Thousands of jobs in solar thermal energy, wind power and energy efficiency are being sacrificed to the myth that only coal can keep the lights on.

“The NSW government continues to trade on the clean coal fairy tale.

“Carbon capture and storage will not be available in the time scale needed to respond to global climate change. If it ever works, it is likely to be very expensive.

“Clean coal and gas are nothing but green-wash for a climate killing policy of swamping the state with excess coal-power.

“The approval of new power plants shows the Keneally Government is not serious about addressing the threat of climate change.

“If they were, they would be announcing planning approval and direct public investment for large-scale solar thermal power plants to replace the state’s highly polluting coal-fired generators,” Dr Kaye said.

For more information:       John Kaye 0407 195 455

Background

Planning Minister Tony Kelly has announced his approval for the concept plans for two new coal or gas fired power stations, each of 2,000 MW.

This is the end product of the power privatisation process started by former Treasurer Michael Costa.  The sites with concept plan approval will be offered for sale  to the private sector with the aim of luring them into developing $10 billion of new baseload capacity.

Even with a $30 per tonne CO2 cost, coal is likely to be more attractive to a private sector developer than gas. The carbon price impacts on a coal fired power station would be about $24 per MWh and about $10 per MWh on gas. The $14 per MWh carbon price benefit of gas would be swamped by probable surge in gas prices from the construction an East Coast export terminal.

Greenhouse gas emissions

Figures based on the project environmental assessments. Percentages based on 2007 National Greenhouse Accounts, NSW Inventory total (excluding LULUCF) of 151.6 Mt CO2e in 2007