PM’s Pledge for Affordable Electricity Supply

Prime Minister Scott Morrison said the Government will back a new gas power plant in the Hunter Valley if the energy sector doesn’t replace Liddell power station’s capacity before it closes down in 2023.

The Liddell Taskforce found closing the plant without adequate dispatchable replacement capacity risks prices rising by around 30 per cent over two years.

“Affordable, reliable and a secure electricity supply is critical to our JobMaker plan for households, businesses and industry,” the Prime Minister said.

“We won’t risk the affordability and reliability of the NSW energy system and will step in unless the industry steps up.

Snowy Hydro Limited is developing options to build a gas generator in the Hunter Valley at Kurri Kurri should the market not deliver.

Minister for Energy and Emissions Reduction Angus Taylor said that since 2010, investment in dispatchable capacity had slowed to a trickle, with only around 1.6 GW of new dispatchable capacity connected in the national electricity market.

“The Government has always been clear – we need to see life extension or like-for-like replacement of Liddell,

“Over the last decade, the private sector has not built a single new reliable power plant in NSW,” Minister Taylor said.

“The Government expects industry to step up and deliver the new dispatchable capacity required to ensure a reliable and affordable energy system.

“If industry steps up, we’ll step back.”

The Prime Minister says the Government’s plan will hold the energy companies to account and maintain downward pressure on electricity prices while simultaneously developing the backbone of a reliable, lower emissions National Electricity Market.