A possible deal that passes NSW government control of the Eringing Origin Power Plant would have exposed the state and taxpayers to an unacceptable level of risk and possible unlimited costs, says NSW Treasurer Matt Kean.
Speaking after a keynote address at The Australian Financial Review ESG Summit, Kean said he was comfortable that six months of talks with the energy giant during the second half of last year had finally not come. to an agreement.
The deal “would have exposed taxpayers to great limitless risk” and potentially exposed the government to costs in the “hundreds of millions of dollars,” Kean said.
“We will always enter into good faith negotiations … but what guides policy decisions in NSW is what will ensure the reliability of the system, what will reduce household energy bills and what will protect taxpayers’ money.”
Kean said the government had finally decided that building a massive grid battery, known as the Waratah Super Battery, with a capacity of 700 MW, was the most effective way to support the energy needs of the world. state, and that the Australian energy market operator had confirmed the plan. .
“I’m very happy with where we landed,” Kean said.
Comments arrive the next day The Australian Financial Review revealed that Origin Energy approached the NSW government in mid-2021 with a bold proposal that offered it control of the plant with losses from 2023 and financial responsibility from 2025.
The energy supplier argued that joint ownership would give the state greater certainty and control over when the plant would be removed, while insuring against temporary risks to Snowy 2.0 and the construction of transmission infrastructure. which connects Snowy to the network. Talks broke down in December 2021.