On the back of Liddell Power Station’s cessation, Business Hunter is continuing to push for faster commissioning of renewables.
Described this week as the “grand old dame” of the region by Upper Hunter MP Dave Layzell, the energy plant – located between Muswellbrook and Singleton – will be ramped down on Friday 28 April after 52 years of service.
It also means NSW could lose about 13% of its electricity supply.
Business Hunter CEO Bob Hawes admitted Liddell’s closure represented the start of an uncertain period in the energy market, a reality at odds with forecasts at the time the closure was determined in 2017.
“The Australian Energy Market Operator (AEMO), the National Productivity Commission and the CSIRO have all recently indicated we face insecurity across the period to 2027 due to insufficient replacement firming generation at the rate required to meet the current and forecast demands,” he said.
“There’s an urgent need for additional large-scale commitments to occur.
“We’ll continue to work at the intersection of government, business and investment to support the supply of reliable and affordable energy as we journey towards a renewable energy future.”
Mr Hawes said the Hunter had a key role to play in achieving the ambitions of the state and the nation, which was simultaneously one of its greatest opportunities and challenges.
“Here in the Hunter, we’ll be at the epicentre of activity for the energy transition,” he explained.
“The future in this context is extremely bright.
“However, energy reliability and affordability will be further tested as our demand curve leaps upward to forge new industries in green hydrogen, offshore wind and battery manufacturing, all hungry for vast amounts of renewables.
“We’re confident Minster for Climate Change and Energy Chris Bowen and NSW Minster for Climate Change, Energy, the Environment and Heritage Penny Sharp are aware of the current circumstances.
“All we ask is for continued honesty and transparency in the conversations if we’re to limit the downside to 2027.”
Mr Hawes noted Mr Bowen had made it clear that to achieve net zero targets to 2030 of a 43% reduction in carbon, the energy sector needed to be commissioning 40 turbines per month, 22,000 solar panels daily and 10,000km of transmission line.
“This is a massive task,” he said.
“We’d like to see the ledger as to how we’re performing to meet this target.
“Locally, skills shortages and supply chain pressures threaten to slow construction and the delivery of large scale of renewable projects.
“The energy transition has become increasingly time sensitive as accelerating closures of older infrastructure combine with delays and cost blowouts on new infrastructure.
“We have our work cut out to deliver the next components of the energy transition in a timely manner.”
Meanwhile, even though state and federal Labor politicians assure residents they have nothing to fear, the Nationals Leader believes the closure of Liddell Power Station will hurt household hip pockets without a reliable alternative.
David Littleproud said the Australian Government’s policies were hurting job security for the Hunter… and energy security for the country.
“In two years, Lake Macquarie’s Eraring Power Station, which accounts for 25% of the state’s energy requirements, will also close,” he stated.
“So, we must urgently consider other options.
“It’s why The Nationals have continually urged the government to have a National Energy Summit.
“The Coalition’s investment in the Kurri Kurri gas generator would have seen a reliable replacement delivered in late 2023, but Labor’s Hydrogen plan is a sad example of their ideology not matching the practical reality of the need for cheap and reliable power.
“It’s time to have a constructive, honest and mature conversation about the long-term solutions such as the emerging small modular nuclear reactors (SMR).
“We can target zero emissions and have clean, reliable energy while still being able to afford power and keep warm in winter.”
Lyne MP Dr David Gillespie said both Liddell and Eraring were ideal locations for SMRs.
“These sites plug straight into the existing power grid, eliminating the need, as Labor’s plan does, to build a whole new grid, which includes tens of thousands of kilometres of new power lines,” he added.
“They will also generate carbon-free clean energy and provide NSW and Australia with affordable and reliable 24/7 baseload power.”
Hunter-based Nationals Senator Ross Cadell said nuclear was often left out of the “clean energy” conversation despite it being the second largest source of low-carbon electricity in the world, behind hydropower.
“The Achilles heel of wind and solar is the provision of adequate storage, at a reasonable cost, of power not needed in the middle of the day, but needed when the sun is not shining and/or the wind is not blowing,” he explained.
“When you rank the cost of various energy sources, power from SMR is the cheapest to operate.
“Transitioning these current energy generation sites will ensure comparable employment for our local workers and protects our agricultural and natural environment from wind, solar and high voltage power lines.”
For more business stories:
- Up, up and away, Newcastle Airport plans soaring
- Program to support budding Hunter-based entrepreneurs
- lululemon Newcastle – here’s what I think
Get all the latest Newcastle news, sport, real estate, entertainment, lifestyle and more delivered straight to your inbox with the Newcastle Weekly Daily Newsletter. Sign up here.
