Senate Environment and Communications Legislation Committee, , 3:05:57 to 3:10:18
Discussion on how extensions of coal-fired power stations by state governments and private operators impact investment certainty for new renewable energy projects.
Topics: Renewable energy, Fossil fuels, Electricity grid
Speakers: Speaker 13, Steph Hodgins-May, Unknown Speaker, Hon Tim Ayres
>> If we can if if we can do that we will
Senator. Yes. >> Yeah. Sure. um to the department. The number one complaint that we hear from the renewables sector is that there is no investment certainty because origin, the New South Wales government, the Vic government and the Queensland government keep extending their coal fleets. Um is this the feedback the department is
>> We do we do hear that feedback, Senator. Um uh look it is probably um less than it was a few years ago. I think there's increasing certainty in the short term about the exit of cold fire generators. Um you know things become a bit more uncertain when you look at the generators scheduled for closure around 2035. But those generators I think there's a sense a greater sense of certainty in the industry now that um you know some of the generators slated for closure pre2030 uh that the uh the the necessary investments in system strength have been made and I think ADM's recent ESU report um is is is evidence of that
>> and would you be would it be fair to say that the most recent uh spikes in the energy market is from coal outages and unplanned repairs?
I think it plays a a key uh a key um reason. I think the colleagues will have the exact features but out of out of 17 peak price days in uh in 2025 uh eight of those were associated with unplanned coal exits. So it is it is uh playing a part in some of those peak price days that can have a big impact on
that coal extensions are materially affecting um the ability to reach 82% renewables by 2030?
>> It is it is a key part of the equation, but as I said, those those closures pre2030 uh now appear to be more certain based on the the information that AMO has published based on my engagement with industry. Um
yeah. Um, and do you do you expect um the unplanned blackouts to increase?
>> Uh, I I think they will continue to be a feature of the system giving the the you know aging nature of our cold fire generators. They they aren't getting any younger. Some of them are 50 years old. It's um you know it will be a feature of the system until they're removed.
>> And this will um presumably push up prices as well.
>> It will be it will be a source of high prices. Yeah. the if if they do continue to leave to unplanned outages.
>> If the um if the federal parliament set the time of coal closure in law um would this help spur investment in new
I haven't really turned my mind to that. I think at the federal level our main focus is on driving investment in renewables which we're seeing and batteries which we're seeing at the moment have an impact on prices particularly in the shoulder period um uh which will make the cold fire generators economically
>> but if states and origin I suppose keep extending um this undermines the federal work doesn't it?
>> It it does. Um it I I think though the states have their own targets and they are keen to see a smooth transition given some of the problems we have and they experience with the cold fire generators outage outages. So, you know, I've got no um no reason to believe they're not as keen to see those generators shut down on the scheduled time frames as keen as we are. Um they just like us um want to make sure that the impacts on affordability and the impacts on reliability are managed well and AMO's latest report suggests that that's that's all on track.
So, okay. So, so you haven't considered federally legislating that and um minister that's not something you've contemplated?