NSW backs new power stations

Sydney Morning Herald
Thursday 1/10/2009 Page: 4

THE NSW Government is pressing ahead with plans for two huge new power stations that could increase Australia's total greenhouse gas emissions by 20 million tonnes a year, the equivalent of doubling the number of cars on the state's roads. Documents released by the NSW Planning Department yesterday show the Government is prepared to back the new coal or gas-fired plants at Mount Piper near Lithgow and Bayswater near Muswellbrook. Coal or gas are the only fuels available to keep pace with electricity demand, according to the environmental assessments for the power stations.

This claim is challenged by various independent reports which say Australia's future energy needs can be met by improved energy efficiency and more renewable power. If gas is chosen instead of coal, the greenhouse gas emissions would be halved, but would still raise the state's total emissions by about 6% a year over current levels. Significantly, the environmental assessments for the two power stations say "clean coal" technology will not be available to them in the foreseeable future.

Under the Federal Government's proposed emissions trading scheme, both plants would need to obtain carbon permits valued at more than $250 million a year, unless some permits were granted for free. The sites are expected to be sold under the the State Government's privatisation plans. The proposed Mount Piper plant, to be operated by Delta Energy, would produce 2000 MWs of electricity from either an advanced "supercritical" coal-burning process or from gas-fired turbines.

The proposed Bayswater plant, to be run by Macquarie Generation, would produce the same amount of electricity. Its environmental assessment says the choice of fuel would depend on availability at the site, but goes on to say that coal is more readily available than gas, which would require the construction of a special pipeline.