Hazelwood Closure A Symbolic Generational Shift

Hazelwood Power Station Closure

The announcement of the closure of the emissions-spewing Hazelwood Power Station in Victoria has heralded a major shift in Australian energy says the CEC.

Engie, Hazelwood’s owner, yesterday formally announced it will close the aging coal power station and adjoining mine; effective at the end of March 2017.

The decision is part of Engie’s transformation plan aiming to focus solely on low-carbon projects for power generation, including renewable energy. The company already has 2GW of  gas and wind-generating assets in South Australia and says it is also developing or contracting wind and solar power generation across Australia.

Engie states it is committed to supporting affected employees and will commence rehabilitation of the site of the massive Hazelwood site. Victoria’s State Government has also committed to supporting workers and affected businesses, with a $22 million package of support immediately available.

Hazelwood Power Station

While empathizing with affected workers,  Clean Energy Council CEO Kane Thornton said Australia’s energy system was oversupplied with outdated coal-fire power generation facilities and the mothballing of Hazelwood will not have an impact on the reliability of the nation’s electricity system.

As we mentioned yesterday, the impact of Hazelwood’s closure on electricity prices appears to depend on who you ask at this stage.

“The renewable energy technology available right now is very reliable, as well as being the cheapest type of new generation it is possible to build today compared to new coal, gas or nuclear power – and it will only get cheaper over time,” said Mr.Thornton.

Mr. Thornton also stated that given the rise of battery storage and Australia’s Paris agreement commitments, renewables will play a very important role in Australia’s energy future.

The CEC has called on the Federal Government, in consultation with State Energy Ministers, to gradually transition the nation to a zero net emission energy system no later than 2050.

“This will ensure that investment happens in the most efficient possible way,” stated Mr. Thornton.

In somewhat of a coincidence (or perhaps not), the New South Wales government yesterday launched draft climate policy with an (aspirational) goal of the state achieving zero emissions by 2050.

Another draft plan also launched yesterday proposes to help New South Wales households save up to $7.8 billion on their energy bills by 2050 and assist businesses and industry save up to $9.1 billion by the same year.

“Attracting up to $3 billion of investment and jobs in energy efficiency and advanced energy in NSW, this package will facilitate the acceleration of new technologies, such as battery storage, for a safe, reliable, low-cost transition to guarantee our state’s energy security,” said Minister for Industry, Resources and Energy Anthony Roberts.

Assuming the policy is implemented, New South Wales will join South Australia and the ACT in the zero emissions energy goal club; with the latter aiming to achieve it by 2020.

Hazelwood Power Station image credit : MriyaOwn work, CC BY-SA 3.0, Link

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