AGL must guarantee commitments that it made in 2017 to fully rehabilitate its power station sites are honoured by PrimeCo, the new corporate entity set up to manage the company’s dirty energy assets. 

In its 2017 Rehabilitation Report, AGL committed $898 million for the rehabilitation of the Bayswater and Liddell sites in the Hunter Valley. [1]

“The transfer of these power stations to a new corporate entity poses a risk to the Hunter Valley community if rehabilitation falls between the cracks during the transfer,” Nature Conservation Council Chief Executive Chris Gambian said.

“AGL has made billions from these highly polluting facilities. Taxpayers must not be left on the hook to pay for the clean-up when the shutters go down on these facilities.

“We call on AGL to explain what mechanisms it will use to guarantee the new company honours existing commitments.

“AGL must also confirm there will be no forced redundancies for power station workers as a result of the demerger.”

Mr Gambian said the corporate restructure that divides AGL’s energy assets into “dirty” and “clean” energy companies did nothing to reduce its climate impact.

“AGL is the nation’s dirtiest climate polluter as owner of the Liddell and Bayswater coal-fired power stations in NSW and the massive Loy Yang A power station in Victoria,” Mr Gambian said.

“This restructure is a branding exercise that ignores the urgent need to reduce the total climate impact of its assets.

“This is a cynical piece of corporate spin. 

“It doesn’t matter how the company structures itself or what it calls itself, the fact remains that these assets will still be doing massive harm to the climate and must close sooner rather than later.”

References

[1] Rehabilitation: AGL’s approach to rehabilitation of power generation infrastructure, 2017

Leading energy research company, RepuTex, has found transitioning the NSW to 100% clean energy by 2030 would deliver consistently lower wholesale power prices than business-as-usual. [1] 

RepuTex found that under the current approach to the energy transition, where the last coal-fired power station closes around 2045, wholesale prices would range between $50MWh and $80MWh over the next decade. 

This was substantially more than $47/MWh to $60/MWh range forecast if NSW transitions more quickly to 100% renewables, where the last coal-fired power station closes in 2030. 

“This report clearly shows that it is technically feasible to make the NSW electricity sector 100% renewable by 2030,” Nature Conservation Council Chief Executive Chris Gambian said. 

“It also shows that we can do it without affecting power prices or reliability. 

“As we have seen over the past few weeks, renewables have put huge downward pressure on electricity prices and the profitability of companies that run the coal-fired power stations. [2] 

“That pressure will remain until the last coal station closes. It’s no longer a matter of whether this transition will occur, but how fast. 

“The big missing piece is a transition plan for coal communities like those at Lithgow, on the Central Coast and in the Hunter. 

“Governments and the major political parties have completely failed these communities. They have told them fairytales of coal forever and failed to plan the real future that is coming faster than anyone imagined. 

“The report also shows the importance of installing big batteries and completing transmission lines on time to ensure that reliability and low prices is maintained as all five coal-fired power stations retire.”  

KEY FINDINGS 

RE100 is technically feasible. 

• Transitioning to RE100 is possible using existing technologies if there is sufficient investment. 
• Renewable energy generation must grow six-fold from 12 TWh in 2019-20 to 72 TWh in 2030. 
• Variable renewable energy capacity must grow by 24 GW from roughly 8 GW in 2019-20 to 32 GW in 2030. This requires addition of: 
  • 6,000 MW of distributed PV, and 
  • 18,000 MW of large-scale wind and solar 
• Storage must grow by over 10,000 MW, including: 
  • Almost 8,000 MW of dispatchable storage (including snowy 2.0). 
  • Almost 3,000 MW of behind-the-meter batteries.  

RE100 would be cost-neutral for consumers. 

• Short-term annual average wholesale electricity prices are forecast to be below business-as-usual levels. 
• Average prices will range between a high of $60/MWh after the closure of Liddell in 2023 to a low of $47/MWh as transmission projects fully connect Snowy 2.0, expand the Queensland interconnection and open a new Renewable Energy Zone in New England.  

Barriers to be overcome. 

• Continuing to attract investment in renewable generation and clean flexible capacity; 
• Coordinating the phase-out of coal-fired generation with VRE integration and transmission upgrades to maintain supply during the transition. 
• Developing transmission infrastructure at a pace matching the development of new VRE and storage. 

Policy and investment settings 

New policy and investment settings will be required to overcome the identified barriers, including: 

• expanded investment targets for clean energy and storage,  
• a co-ordinated, orderly phase-out of coal-fired facilities, 
• additional priority transmission infrastructure, and 
• implementation of the recently legislated Energy Security Target   

References 

[1] Cost and reliability analysis of a Paris-compliant energy transition in NSW, RepuTex, 2020 

[2] Renewable energy could render five of Australia’s remaining coal plants unviable by 2025, 24-2-21, The Guardian.  

About RepuTex  

RepuTex is Australia's leading provider of research, pricing and advisory services for the local energy and environmental markets. 

MEDIA CONTACT: James Tremain | 0419 272 2

Leading energy research company, RepuTex, has found transitioning NSW to 100% clean energy by 2030 would deliver consistently lower wholesale power prices than business-as-usual. [1]

RepuTex found that under the current approach to the energy transition, where the last coal-fired power station closes around 2045, wholesale prices would range between $50MWh and $80MWh over the next decade.

This was substantially more than $47/MWh to $60/MWh range forecast if NSW transitions more quickly to 100% renewables, where the last coal-fired power station closes in 2030.

“This report clearly shows that it is technically feasible to make the NSW electricity sector 100% renewable by 2030,” Nature Conservation Council Chief Executive Chris Gambian said.

“It also shows that we can do it without affecting power prices or reliability.

“As we have seen over the past few weeks, renewables have put huge downward pressure on electricity prices and the profitability of companies that run the coal-fired power stations. [2]

“That pressure will remain until the last coal station closes. It’s no longer a matter of whether this transition will occur, but how fast.

“The big missing piece is a transition plan for coal communities like those at Lithgow, on the Central Coast and in the Hunter. 

“Governments and the major political parties have completely failed these communities. They have told them fairytales of coal forever and failed to plan the real future that is coming faster than anyone imagined.

“The report also shows the importance of installing big batteries and completing transmission lines on time to ensure that reliability and low prices is maintained as all five coal-fired power stations retire.” 

KEY FINDINGS

RE100 is technically feasible.

• Transitioning to RE100 is possible using existing technologies if there is sufficient investment.
• Renewable energy generation must grow six-fold from 12 TWh in 2019-20 to 72 TWh in 2030.
• Variable renewable energy capacity must grow by 24 GW from roughly 8 GW in 2019-20 to 32 GW in 2030. This requires addition of:
  • 6,000 MW of distributed PV, and
  • 18,000 MW of large-scale wind and solar
• Storage must grow by over 10,000 MW, including:
  • Almost 8,000 MW of dispatchable storage (including snowy 2.0).
  • Almost 3,000 MW of behind-the-meter batteries. 

RE100 would be cost-neutral for consumers.

• Short-term annual average wholesale electricity prices are forecast to be below business-as-usual levels.
• Average prices will range between a high of $60/MWh after the closure of Liddell in 2023 to a low of $47/MWh as transmission projects fully connect Snowy 2.0, expand the Queensland interconnection and open a new Renewable Energy Zone in New England.

Barriers to be overcome.

• Continuing to attract investment in renewable generation and clean flexible capacity;
• Coordinating the phase-out of coal-fired generation with VRE integration and transmission upgrades to maintain supply during the transition.
• Developing transmission infrastructure at a pace matching the development of new VRE and storage.

Policy and investment settings

New policy and investment settings will be required to overcome the identified barriers, including:

• expanded investment targets for clean energy and storage, 
• a co-ordinated, orderly phase-out of coal-fired facilities,
• additional priority transmission infrastructure, and
• implementation of the recently legislated Energy Security Target

References

[1] Cost and reliability analysis of a Paris-compliant energy transition in NSW, RepuTex, 2020

[2] Renewable energy could render five of Australia’s remaining coal plants unviable by 2025, 24-2-21, The Guardian. 

About RepuTex 

RepuTex is Australia's leading provider of research, pricing and advisory services for the local energy and environmental markets.

MEDIA CONTACT: James Tremain | 0419 272 254

• 102,000 tonnes of nitrogen oxides; 
• 153,000 tonnes of sulphur dioxide; 
• 1,312 tonnes of coarse particles (PM10); and   
• 358 tonnes of fine particles (PM2.5). 

Angus Place Colliery near Lithgow may soon be a worthless stranded asset because its main customer, Mt Piper power station, could be broke by 2025, new economic analysis shows.

The Institute for Energy Economics and Financial Analysis (IEEFA) has released a report today that shows Mt Piper power station, owned by Energy Australia, losing $50 million a year by 2025. 

The analysis echoes comments made by Australian Energy Security Board Chairperson Kerry Schott last week, who said coal-fired power stations “will probably go four or five years earlier [than their scheduled closure date] because they are not making any money and they may go before that”. [2] 

“It is hard to imagine Energy Australia wearing $50m annual losses for long before they decide to pull the pin,” Nature Conservation Council Chief Executive Chris Gambian said. 

“If that happens, the Angus Place Colliery expansion will be a white elephant — a stranded asset and a toxic legacy.” 

The NSW Planning Department is currently considering a proposal to expand the Angus Place Colliery to supply Mt Piper power station.

“The NSW Government should reject the Angus Place application because the economic argument, which was always flimsy, is getting weaker every time there is a new report,” Mr Gambian said. 

“The expansion plans don’t stack up, not in terms of the ecology, the economics or the climate.

“This mine expansion would cause a local ecological catastrophe by draining and killing rare wetlands, and for what? It seems unlikely to even keep Mt Piper going.

“There are huge opportunities beyond coal for communities like Lithgow, but they will require investment by the government and business.

“Lithgow can’t reach its post-coal potential alone - it needs substantial support from the state and federal governments. That support is conspicuously lacking.

“Change in our energy systems is gathering pace so coal communities need government help to get on board or they will be left behind.

“Germany has created a 40 billion euro fund to help its coal communities develop new economic opportunities. 

“We need something similar to ensure our communities don’t suffer because of the rapid international shift away from coal.

“We call on the NSW government to set aside a substantial fund, with billions of dollars to ensure no worker is left high and dry and that coal mining regions will have sufficient resources to adapt economically.”

References

[1] Fast Erosion of Coal Plant Profits in the National Electricity Market, IEEFA, February 2021. See Figure 1, page 3. 

[2] Coal power stations going broke: Schott, AFR, 16-2-21

Two of the three coal-fired power stations likely to be still running the Hunter and Central Coast regions by 2025 could be worthless stranded assets, new economic analysis shows.

The Institute for Energy Economics and Financial Analysis (IEEFA) has released a report today that shows Eraring and Vales Point B power stations will be running multi-million dollar annual losses by 2025. [1] 

Only Bayswater is forecast to turn a profit, but that could be as little as $100m a year, $500 million less a year than in 2018.

The analysis echoes comments last week by Australian Energy Security Board Chairperson Kerry Schott who said coal-fired power stations “will probably go four or five years earlier [than their scheduled closure date] because they are not making any money and they may go before that”. [2] 

Nature Conservation Council Chief Executive Chris Gambian said: “The people of the Hunter region are being let down by political leaders who have failed to prepare for the inevitable changes facing their community.

“There are huge opportunities beyond coal for the Hunter community, but they will require investment by the government and business.

“The Hunter region can’t reach its post-coal potential alone — it needs substantial support from the state and federal governments. That support is conspicuously lacking.

“Change in our energy systems is gathering pace so coal communities need government help to get on board or they will be left behind.

“Germany created a 40 billion euro fund to help its coal communities develop new economic opportunities, and Poland last week announced a $20b transition package to ensure communities aren’t left stranded . 

“We need something similar to ensure our communities don’t suffer because of the rapid international shift away from coal.

“We call on the NSW and Federal governments to set aside a substantial fund, with billions of dollars to ensure no worker is left high and dry and to create jobs in coal regions.”

References

[1] Fast Erosion of Coal Plant Profits in the National Electricity Market, IEEFA, February 2021. See Figure 1, page 3. 

[2] Coal power stations going broke: Schott, AFR, 16-2-21

The NSW Environment Protection Authority has agreed to public consultation before determining whether to let Vales Point power station keep emitting high levels of nitrogen dioxide (NO2) for another five years.

Under pressure from Central Coast families, local community group Future Sooner and the Nature Conservation Council, the EPA agreed that members of the public and health and environment groups should have a say. 

“This is a great outcome for the Central Coast community, especially children with asthma who are at the front line in terms of health impacts,” NCC Chief Executive Chris Gambian said. 

“We are very keen to engage constructively and help residents participate in the consultation process so they get the results they deserve.” 

EPA Chief Executive Officer Tracy Mackey has written to NCC conceding “there is benefit in seeking public submissions on the proposal”, even if it is not legally required. 

“For 10 years, the EPA has exempted Vales Point from the Clean Air Regulation, allowing it to emit NO2 at twice the rate of other facilities,” Mr Gambian said. 

“The company has applied for another five-year exemption but the community has had enough. 

“People want Vales Point to clean up its act so their kids can breathe easy.”

 In January 2021, Newcastle epidemiologist Dr Ben Ewald found that about 650 kids on the Central Coast had asthma because of NO2 emissions from coal-fired power stations.  [1]

NCC, Future Sooner and local residents want the EPA to reject Vales’ application.

“Vales could instal NO2 burners for $33 million and operate them for $2.5 million a year, which is peanuts for a company that last year made $141 million profit before tax,” Mr Gambian said. [2] [3]

“Local residents should not be forced to pay for coal-fired power with health, especially when the owners of Vales can clearly afford to make their facility safe for kids.”

REFERENCES 

[1] Power station NO2 emissions and paediatric asthma in Central Coast, Hunter Valley and Sydney Local Government Areas, briefing note by Dr Ben Ewald, January 2021

[2] Jacobs report, GIPA EPA431, table ES-2, page 10

[3] Vales Point power station’s billionaire beggars receive $62 million dividend for FY2019-20, NCC media release, 1-12-20  

The NSW Planning Department must reject the application to double production of the Mount Pleasant open-cut coal mine near Muswellbrook because it will have unacceptable health and climate impacts. [1] 

“With three mines basically on the edge of town, people who live in Muswellbrook are already choking on coal dust and some of the worse air quality in Australia,” Nature Conservation Council Chief Executive Chris Gambian said.  

“Dust from coal mining is the leading cause of very high rates of respiratory disease in the town.

“Air quality in Muswellbrook has breached the national standards for fine particles (PM2.5) every year since the standard was introduced. [2] 

“Muswellbrook locals need clean air, not more coal. This project will not only be bad for people’s health, it will be bad for the climate. 

“Coal is stoking the fires of climate change, which is a threat to our way of life, to our native plants and animals, and to our economy. 

“We need to be planning for the future, not living in the past. We should be investing in our clean, renewable energy future, not opening or expanding coals mines. 

“The bushfire season last year that wiped out a third of our koalas and killed possibly billions of native animals was made more extreme by climate change. 

“We cannot afford to stoke the fires of climate change any more.

The Hunter desperately needs a plan for the jobs and economic growth of the future.  

“Propping up the coal industry as the world moves away from coal is a betrayal of the next generation of Australians who need us to be planning for their prosperity now. 

“We know all too well that the mining industry will shut mines down when they don’t make money. What happens then? 

“The aggressively pro-coal agenda being pushed by the likes of Hunter MP Joel Fitzgibbon is shortsighted and dangerous.”  

Other mines close to Muswellbrook are Mt Arthur and Bengalla. 

References 

[1] Mount Pleasant Optimisation Project, NSW Planning Department   

[2] See for example NSW Annual Air Quality Statement 2018, pp17-18