David Llewellyn-Smith discusses the ruination of NSW energy market by energy gentailer, Origin Energy:
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- Origin built an LNG export plant in QLD (along with two others) that has created an artificial gas shortage in Australia since 2014.
- Aussie gas is regularly more expensive in Australia than it is in Europe.
- This has derailed the NSW energy transition to low-carbon energy because the state lacks gas to replace coal as firming power for renewables.
- NSW paid Origin $250M to take the Eraring coal station off its hands ten years ago, thinking it was obsolete.
- But, since Origin has deprived the state of gas (by sending it to China), Eraring is the last large-scale baseload power in NSW. Now, the government is negotiating with Origin to subsidise it and keep it open.
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