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Posted: 2023-07-14 05:54:52

Australia is experiencing one of the world’s fastest energy transitions as coal-fired power stations, which today supply about two-thirds of the main grid, increasingly bring forward their retirement dates as the growing share of cheap wind and solar power challenge their viability.

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However, industry leaders and AEMO are increasingly nervous about the lagging pace of the rollout of new generation, storage and transmission projects required to compensate for coal plants’ withdrawals and provide on-demand electricity when it’s needed, including when the wind isn’t blowing and the sun isn’t shining.

Following the closure of AGL’s Liddel generator in NSW earlier this year, at least four more coal plants in Victoria, NSW and Queensland are expected to shut down by 2030.

Origin Energy last year gave notice that it may close its 2880-megawatt Eraring generator in NSW, the largest coal-fired power plant in the country, by 2025 – up to seven years earlier than its original plan to close in 2032 – but has committed to keeping the plant open if the grid is not equipped to handle its exit.

A series of delays in building the government-owned Snowy 2.0 pumped hydro project in NSW and crucial transmission lines needed to link up new renewable energy zones has raised speculation that Eraring may need to remain open.

Environmental campaigners on Friday said keeping Vales Point open beyond 2029 would make it “almost impossible” for NSW to reach its emissions-reduction targets.

Jacqui Mumford, chief executive of the Nature Conservation Council of NSW, said the coal-fired power station’s average yearly carbon dioxide emissions of 6.7 million tonnes was equivalent to more than half of the emissions of the state’s entire fleet of passenger vehicles.

“I call on the NSW government to rule out any support to keep Vales Point operating longer than 2029,” she said.

“In an era of increasing climate catastrophe, we cannot allow such reckless disregard for our future.”

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