March 8, 2013
The chances of Tarong Power Station’s two mothballed power generating units being restarted within the next few years looked more promising today after the State Government ruled out building any new coal-fired power stations in the next 10 years.
A statement from Energy Minister Mark McArdle said it was “unlikely there will be a need for an additional coal-fired base load generator in Queensland within the next decade” unless demand picks up.
Mr McArdle made the statement as he was explaining changes to the State’s energy sector.
He said the State Government was closing the Queensland Gas Scheme and the Smart Energy Savings Program (SESP) and repealing standards for new coal-fired power stations.
“These schemes, introduced by the previous State Government, have largely achieved what they set out to do and are no longer required,” Mr McArdle said.
“The Queensland Gas Scheme requires electricity retailers to source 15 per cent of their electricity from Gas Fired Generators, to encourage investment in gas fired electricity generation and boost gas production across the state.
“The scheme has served its purpose, with nearly 20 per cent of electricity currently being sourced from gas generators.
“Since carbon pricing, introduced in July 2012, is achieving similar outcomes, now is an appropriate time to remove duplication and cease the scheme.”
The Smart Energy Savings Program (SESP) required businesses using a certain amount of electricity to report their energy use to government.
Mr McArdle said Queensland businesses should identify energy savings to boost their bottom lines and not be forced to report these savings to government.
“This requirement was adding red tape for no reason and the government will not undertake any compliance activity for outstanding obligations under the SESP,” he said.
Mr McArdle said standards for new coal-fired power stations would be abolished as they had been replaced by the introduction of carbon pricing and no additional environmental benefit would be achieved by continuing the policy.
“The repeal of these standards will strip away the administrative burden and complexity for investors. It will allow them to select the most appropriate technology for their needs and brings Queensland into line with all other states and the Federal Government,” he said.
“Also, based on current demand, it is unlikely there will be a need for an additional coal-fired base load generator in Queensland within the next decade.
“The Department of Energy and Water Supply will provide guidance to participants as they transition out of the two closing schemes and help energy providers understand any changes as a result of the repeal of standards on new coal-fired power stations.”
[REVISED 2:30pm. An earlier version of this report suggested Mr McArdle’s statement ruled out restarting the mothballed Stanwell units at Tarong Power Station. However southburnett.com.au has been told by Stanwell representatives that Mr McArdle was referring solely to new generating units, and as this was the case, it was actually good news for Tarong’s mothballed units]
