The NSW Government’s almost $500 million package to accelerate the uptake of electric vehicles [1] is the beginning of the end of the internal combustion engine’s 120-year monopoly on road transportation in NSW. [2] 

“This is an historic and very welcome package from a government that has significantly increased its commitment to climate action over the past few years,” Nature Conservation Council Chief Executive Chris Gambian said.  

“It will not only reduce the climate impact of road transportation, it will reduce the health impact that cars have on people by improving air quality across our congested cities. 

“I commend the Premier and all the ministers who have made this possible, including Treasurer Dominic Perrottet, Transport Minister Andrew Constance, Deputy Premier and Regional NSW Minister John Barilaro, and Environment Minister Matt Kean.” 

The package includes: 

• Cash rebates and stamp duty exemptions on purchases of new EVs;  
• Targets for a converting the government fleet;  
• Cash incentives for companies to install charging station across the state;  
• Transit lane access for peak-hour EV commuters; and 
• Postponing an EV road user charge until 2027 or when EVs make up 30% of new vehicle purchases. 

“Making the state’s vehicle fleet run on 100% clean energy is the next big challenge after transitioning the electricity grid in NSW,” Mr Gambian said. 

“We still have a long way to go to clean up the grid, but the government has shown today that it understands the urgent need to also tackle the transport sector. 

“About 22 per cent of the state’s greenhouse gas emissions are from the vehicles, so electrification of transport is a key to tackling climate change. [3] 

“The government’s electric vehicle package signals the beginning of the end of the internal combustion engine as the dominant mode of road transport in this state and the dawn of a new, clean energy era.” 

Earlier this month the Nature Conservation Council launched its campaign to convert the state’s fleet to electric vehicles. The council’s Accelerate NSW campaign includes policies to: 

• Waive stamp duty for EV purchases
• Reduce registration fees for EVs
• Provide direct incentives for individuals and businesses to upgrade to EVs
• Mandate EVs for all new government fleet purchases  
• Set EV ambitious vehicle targets for the NSW fleet 

“We are very pleased that the government has acted on most the of priorities we have identified,” Mr Gambian said. 

[1] NSW to abolish stamp duty on electric cars in an effort to boost uptake, SMH, 20-6-21 

[2] The Motor Car in NSW, 1900-1937, Lester Hovenden, Sydney University, 1981  

[3] NSW Emissions, NSW Government, 2021    

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

The Nature Conservation Council welcomes the passage of the Electricity Infrastructure Investment Bill through NSW Parliament this afternoon with cross-party support after a marathon 32-hour sitting of the upper house.

The bill will ensure about 60 wind and solar farms are built over the next 10 years, creating 9,000 jobs and stimulating $32 billion in private investment. These projects will prevent the emission of 90 million tonnes of climate pollution.

“The passage of this bill shows that all sides of politics agree we must get on with building the clean-energy future our state needs,” NCC Chief Executive Chris Gambian said.

“This law is proof that NSW can act on climate change at the same time as creating jobs and reducing power bills.”

The NSW Electricity Infrastructure Investment Bill will accelerate the construction of transmission lines to regional NSW and support the development of new solar, wind and pumped-hydro projects.

“Everyone in NSW has skin in this game,” Mr Gambian said. “Last bushfire season showed we are now on the front line of climate change impacts, and scientists have warned that if we don’t immediately cut climate pollution, fire seasons will get much worse.

“This law will see about 60 new solar and wind farms constructed across the state, more than quadrupling clean-energy generation.”

The Liberal Party, ALP, the Nationals, the Greens, Christian Democrats, Animal Justice Party and independent MPs supported the bill. Only Pauline Hanson’s One Nation and the Shooters, Fishers and Farmers  Party opposed.

“Global heating is a massive global crisis,” Mr Gambian said. “This plan demonstrates that we can find pathways through this crisis that help modernise and strengthen our economy.”

The Nature Conservation Council welcomes today’s NSW Government Electricity Infrastructure Roadmap as a crucial step towards making NSW a low-carbon economy.

 “This plan is a step-change in ambition on clean energy,” said NCC Chief Executive Chris Gambian..

“It represents serious action on climate change in a way that will also create jobs and bring down power prices.

The NSW Electricity Infrastructure Roadmap announced today will accelerate the construction of transmission lines to regional NSW and support the development of new solar, wind and pumped-hydro projects. 

It will ensure about 60 wind and solar farms are built over the next 10 years, create 9,000 jobs,  stimulatE $32 billion in private investment, and prevent the emission of 90 million tonnes.

“Everyone in NSW has skin in this game,” Mr Gambian said. “Last bushfire season proved yet again we are on the front line of climate change impacts and scientists have warned that if we don’t immediately cut climate pollution fire seasons will get much worse.

“The plan will see about 60 new solar and wind farms start generating across the state, more than quadrupling clean energy generation.

“Global heating is a massive global crisis. This plan demonstrates that we can find pathways through this crisis that help modernise and strengthen our economy.

“While the Morrison government is absent on climate action, thank goodness their Coalition colleagues in NSW are willing to step up to the challenge of cutting climate pollution while growing the economy.”

The Nature Conservation Council welcomes AGL’s plans to significantly expand its investment in grid-scale storage. [1]

“The symbolism of converting Liddell coal-fired power station site into a major battery for clean energy storage could hardly be more powerful,” Nature Conservation Council Chief Executive Chris Gambian said.

“AGL clearly sees the end of coal as inevitable. The only question now is the speed of the transition.

“AGL has also put what should be the final nail in the coffin for the expensive, dirty and unnecessary Narrabri coal seam gas project.

“The science tells us that NSW and Australia have to end coal-fired power generation by 2030 to be on track to meet the Paris targets.

“If the government and business stick to their current plans, they will miss that deadline by 20 years.

“After the bushfire summer from hell that we just lived through, it is clear we cannot afford to delay.

“We applaud AGL’s announcement today, but we urge all companies and governments to lift their level of ambition so Australia has 100% clean energy by 2030.”

References

[1] AGL gets on with the business of transition with integrated battery system plan, AGL, 14-8-2020

Opening a Renewable Energy Zone (REZ) in New England is welcome but the timing of its development is critical to ensure NSW transitions from coal to renewables faster than is currently planned. [1] 

The NSW Government has announced it will spend $79 million on planning to enable the $12.7 billion of potential investment in the New England Renewable Energy Zone to flows, but no timeline has been given.

The announcement says the delivery timetable to be developed during the detailed planning process.

Earlier this year, the state and federal government agreed to spend $2 billion underwriting new transmission lines linking new renewable projects to the national grid.

"Minister Kean is doing an admirable job of pulling the government in the right direction and increasing the pace of the transition from coal to clean energy, but there is still a question mark over whether that transition is happening fast enough,” Nature Conservation Council Acting Chief Executive Jacqui Mumford said.

"NSW has to end coal and gas power production by 2030 to play its part in limiting global heating to 1.5 degrees and yet the state still burns coal for more than three-quarters of its electricity. 

"Under current arrangements, coal power will be phased out in NSW around 2050, which is far too late. 

“The good news is that NSW has abundant wind and solar energy resources and the potential to be a clean energy superpower both domestically and internationally.

“The North-West Renewable Energy Zone will generate clean-energy jobs and economic activity that are badly needed after the bushfires, drought and covid.

“Now is not the time for opening up gas fields in Narrabri, when clean energy is ready to go.”

REFERENCES

[1] New renewable energy zone to almost match NSW's coal-fired capacity, SMH, 10-7-20

We have a chance to choose a future for our great state powered by clean, cheap energy. This election, you can choose to make NSW a clean energy leader. See how the parties compare at www.repowernsw.org.au

Daisy and Brad dig into Labor's commitment and what it means for the climate, electricity bills and the upcoming election.