Gas fired power plant expected to go ahead

LAST year in September, the Federal Government announced Snowy Hydro Limited will build a gas fired power plant at Kurri Kurri to replace the market gap left by the Liddell Power Station closure in 2023.

Prime Minister Scott Morrison gave the private sector until April 2021 to provide alternative investment plans however,  Joel Fitzgibbon, Member for Hunter said the Kurri Kurri proposal is likely to go ahead.

“You may see the Prime Minister pop up one day and say ‘get on with the job’ and when he does that, Snowy Hydro will be well advanced in their plans to do so,” said Mr Fitzgibbon.

“I think they’ll move very quickly when they get the nod from their shareholder,” he said.

The proposal was granted Critical State Significant Infrastructure (CSSI) status by the New South Wales Government in December, allowing it to be fast-tracked.

Mr Fitzgibbon said the project would diversify energy sources and provide firming capacity as coal generators continue to close.

“They [coal generators] will continue to withdraw . . . they all have a used by date,” said Mr Fitzgibbon.

“It’s highly unlikely anyone will build a new one because they’re too expensive and need you need a 40 to 50 year return and no one can be guaranteed that,” he said.

“So what will fill the void to allow us to get more firming power to the system? It’s going to be gas.

“It also adds to the viability of the Hunter Gas Pipeline, which will bring competition to the gas network, so it’s a good thing for everyone,” Mr Fitzgibbon said.

AGL Energy, which owns both Liddell and Bays Water Power Stations, is currently looking at proposals for potential uses of the Liddell site post-closure, with current employees expected to be re-allocated.

“No one will be forced to lose their job as a result of the closure of Liddell,” said Mr Fitzgibbon.

“AGL is going thought a process about what they do with the Liddell site and I’ve had conversations about what I’d like to see happen there and they’ll go through the same process eventually when Bays Water comes to the end of its life,” he said.

“In 20 years time when Bays Water closes, there will be job losses because there won’t be the capacity to transfer people from Bays Water to another station . . . that’s why we strive to continue to build economic diversity in the Upper Hunter.

“Let’s hope what we do between now and then will spur more jobs,” Mr Fitzgibbon said.