The Western Australian government has called for time for its involvement in coal energy, saying the state will exit the market by 2030 and spend billions of dollars on renewable energy and storage.
Key points:
- Synergy State will close its two coal-fired power plants in 2029
- The government will allocate billions to renewable energy
- About 1,200 workers at the two plants will be affected
In a historic announcement this afternoon, Prime Minister Mark McGowan and Energy Minister Bill Johnston revealed that state-owned energy supplier Synergy would close its remaining coal plants by 2029.
McGowan said the change was necessary because the proliferation of renewable energy sources meant that coal energy was becoming increasingly expensive.
He said that without any changes, household electricity bills could increase by about $ 1,200 a year by 2030.
Some 1,200 employees in and around Collie will be affected by the decision, although the government, industry and unions intend to recycle or re-employ workers as part of a “fair transition” program.
Synergy currently owns and manages two coal-fired power plants, the 854 MW Muja plant and the 340 MW active Collie, both near Collie about 200 km south of Perth.
The government had already announced its planned closure for October this year and 2024 for some of Muja’s older units.
Renewable projects to increase
According to the decision announced today, Collie will close in October 2027, while the remaining Muja units will close only two years later, in October 2029.
The exits will leave a coal-fired power plant operating in WA – the privately owned Bluewaters generator that is also located near Collie.
As part of the reform, the government will spend $ 3.5 billion over 10 years to build renewable energy capacity to replace lost generation.
This will feature about 800 MW of new wind capacity along with more than 2000 MWh of storage, including quick-start lithium-ion batteries.
Crucially, the government will also push for the construction of so-called deep storage, such as pumped hydraulic capacity, which can provide energy for days at a time if needed.
The government is believed to be looking at the Collie region, with its steep topography and mine gaps, as the main candidate for pumped hydraulic investment.
McGowan said gas-fired power plants will continue to provide additional power, largely due to WA’s gas reserves policy.
He said the government had no plans to build a new gas plant after 2030, but left the door open until then.
The prime minister also pledged to limit rising energy prices with inflation until at least 2025.
Focus on work
Mr. McGowan was in Collie to make the announcement today and tried to allay the concerns of the locals.
He highlighted $ 660 million the government was spending on the city, including $ 300 million to dismantle the plants and $ 250 million for “industry attraction and transition programs.”
Synergy’s Muja Power Plant is WA’s oldest power plant. (ABC News: Eliza Borrello)
“We want to make sure that Collie continues to be thriving and successful, that the people who go to school in Collie can continue to have a good job here in this community,” McGowan said.
“We owe it to Collie. They’ve done a lot for the state over the last 130 years and we want to make sure that this city and community has a long-term, viable and prosperous future.”
CFMEU Secretary of State Greg Busson said his top priority was to ensure continued employment for those affected.
“We see that nowadays people are trying to get out of coal and power generation, but the main concern is that everyone in the city who has a job can continue to live the lifestyle of well-paying jobs and good condition, “he said. .
“At this time, we have not been able to find a similar replacement for an industry that will replace these jobs, with the number of jobs and the terms and conditions they contain.
But Mr Busson said he was pleased with the progress of the transition, especially the marketing of Collie as a tourist town.
The head of the Union, Greg Busson, says he is happy with the marketing of Collie as a tourist town. (ABC South West WA: Roxanne Taylor)
“Compared to what has happened in other states, I think we are far ahead of other states, as they have managed,” he said.
“The consultation with the city’s unions and employers has been great. We can always do better. But I think we are far superior to what has happened on the east coast.”
Roof plot in the foreground
Johnston said the abandonment of coal in WA was accelerating by the rapid uptake of solar power on the roof, which reduced the revenue flowing to the heat generators.
He said the closure of Synergy’s remaining coal plants would help the transition to green energy while improving the company’s results.
WA Energy Minister Bill Johnston.
According to the minister, coal-fired power plants are poorly equipped to compete with renewable energy because they are designed to operate in a steady state (or base load) all the time.
However, he said renewable energy by its nature was variable in its production and this forced coal-fired power plants to circulate up and down to accommodate the production of wind and solar generators.
As a result, he said coal-fired plants were making less money while accumulating ever-increasing maintenance bills, killing their business model.
Widespread displacement of coal
State governments and energy companies across the country are revaluing the economic life of their coal-fired power plants.
Origin Energy plans to shut down Australia’s largest coal-fired power plant in New South Wales in seven years in early 2025.
In August 2019, the McGowan government announced Muja’s stage retirement for two years starting in October 2022.
Origin Energy will close its Eraring power plant in the NSW Hunter region earlier than planned. (ABC News: John Gunn)
In December 2020, it released a 15-year plan to move Collie away from its dependence on coal and coal energy production and develop other industries.
The Prime Minister said his government had learned from “intense” experiences on the east coast of Australia and would require power plant operators to warn at least three years in advance of any future closure.
WA Liberals brought an ambitious plan to the 2021 state election under former leader Zak Kirkup, unsuccessfully promising to shut down all publicly owned power plants in 2025.
Local member Jodie Hanns, who appeared in the ad along with McGowan and Johnston, said it was a “tough day” for the community, but was confident the region had a “sustainable and vibrant” future.
Posted 3 hours ago Tuesday, June 14, 2022 at 5:08 AM, updated 19 minutes ago, 19 minutes ago, Tuesday, June 14, 2022 at 8:00 AM