YESTERDAY, Prime Minister Scott Morrison said if the private sector does not meet the required 1000 megawatt capacity to replace Liddell Power Station in April next year, it will build a gas fired power plant at Kurri Kurri.
The Liddell Power Station is due for closure in 2023.
“Affordable, reliable and secure electricity supply is critical in our JobMaker plans for households, business and industry,” Mr Morrison said.
“We won’t risk the affordability and reliability of the New South Wales energy system and will step in unless the industry steps up,” he said.
The Prime Minister said failure to replace the capacity could result in a 30 percent price increase in electricity in two years, $20 per megawatt hour to $80 in 2024 and up to $105 per MWH by 2030.
“Over the last decade, the private sector has not built a single new reliable power plant in NSW,” said Mr Angus Taylor, Minister for Energy.
“We need to see life extension or like-for-like replacement of Liddell…if industry steps up, we’ll step back,” he said.
Snowy Hydro Limited are already developing options for the gas plant, which will be supplied by the Queensland Hunter gas pipeline, should the plant go ahead.
Alongside the Kurri Kurri gas plant, the government also plans to set up a National Gas Infrastructure Plan for gas transport, develop an Australian Gas Hub in Wallumbilla, develop an industry-led code of conduct for gas producers, re-negotiate gas export costs and the support the development of of five key gas basins.
Scott Morrison is visiting the Hunter Valley today to announce the initiatives as part of the governments gas-fired recovery plan, that will attempt to lower gas prices and create jobs.
“This is about making Australia’s gas work for all Australians,” Mr Morrison said.
“Gas is a critical enabler of Australian economy,” he said.