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December 9, 2024 5:23 AM

Energy Must be a Priority

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BY DI SNEDDON

NSW Minerals Council CEO Stephen Gallilee focussed on energy security during a packed Business Singleton breakfast last week.

His address was all the more significant, given it was just one day prior to the well-publicised switch-off of Liddell Power Station.

Acknowledging the change in State Government, Mr Gallilee said the number one challenge facing the new government and Parliament is energy security.

“With Liddell gone, and the Eraring Power Station slated for closure in two years, NSW faces a significant energy security challenge,” Mr Gallilee said.

Given the planned 1,600 megawatts of renewable power projects to replace Liddell are not complete with both the battery storage and gas plant yet to eventuate, a shortfall remains.

While attention is on Liddell, more critical will be the impact of the pending closure of Eraring Power Station, set to close in 2025.

“Eraring is Australia’s largest coal-fired power station, and it provides a quarter of our electricity needs and the closure of Eraring in 2025, so closely after the closure of Liddell, will place extreme stress on the NSW power grid,” he said.

“This challenge is compounded by delays to the Snowy Hydro expansion project, which is now billions over budget, and won’t be operational until 2027 according to the most optimistic scenarios.

“And while the previous government’s Renewable Energy Zones are progressing, and may eventually deliver what they are supposed to, the development of enough additional generation and transmission capacity is still a long way off. There’s simply been too many announcements, plans, and promises, and not enough actual projects.”

Citing announcements of plans for a giant battery at the Eraring site, wind and solar projects, Mr Gallilee warned these projects did not have the capacity to replace what exists now.

“How can we even be contemplating replacing what works now with what is being promised, and all in just a few years.”

Mr Gallilee called for a sensible approach and says Eraring must not be allowed to close until enough new generation capacity is brought online.

“Until enough renewable generation, storage and transmission is ready, there is no choice but to keep Eraring running.

“I’ve said it many times previously, including to this Chamber, that Eraring should not close in 2025. I don’t believe it will.

“No responsible government can allow it to happen,” he said.

He said the next four years are going to be a time of much challenge but also much opportunity to ensure the Hunter is set up for a strong and vibrant future.

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