Power stations operating `below capacity'

Sydney Morning Herald
Tuesday 6/4/2010 Page: 4

PROPOSED new baseload coal or gas-fired power stations in NSW may not be needed if existing plants were operated at higher capacity, according to the environment group Beyond Zero Emissions. State-owned Macquarie Generation and Delta Energy have received concept approval for new baseload power stations with combined capacity of up to 4000MW near existing plants at Bayswater in the Hunter Valley and Mount Piper in Portland, north-west of Lithgow.

The right to build these power stations, subject to final development approval, will be sold along with the electricity retailers EnergyAustralia, Integral Energy and Country Energy, and rights to the output of existing power stations, under the government's proposed energy reforms. But Beyond Zero Emissions' executive director, Matthew Wright, said many of the state's existing black coal-fired power stations were operated at lower capacity than Victorian brown coal-fired power stations, and the new baseload capacity was not needed.

"Since the establishment of the national energy market, Victorian generators have been able to dump cheap electricity into NSW," he said. "With a looming shortfall in national generating capacity, the NSW government is wanting to get in first, and crowd out potential new Queensland or Victorian generators, or emerging renewable energy supply." According to the most recent figures Macquarie Generation's 2640MW power plant at Bayswater is running at 69% capacity and its Liddell 2000MW plant at 57% capacity. Eraring Energy's 2640MW power plant operated at 67% and older power stations at Vales Point and Munmorah operated at even lower levels, 53% and 40% respectively.

On average, according to Beyond Zero, NSW coal-fired power stations are run at an equivalent of 63% capacity while Victorian plants operate at 85% capacity. Mr Wright said NSW had overcapacity of about 3000MW, roughly the equivalent of two Mount Piper power stations. The 2007 Owen inquiry into electricity supply found NSW would suffer a shortfall of generating capacity from 2013-14 and recommended privatisation of the state's generators and retailers to facilitate investment in new baseload capacity.