Energy tsar: Australia needs 26 gas power plants

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Both the AEMO and MB keep saying it: gas is the only way to stabilise and decarbonise the grid so that we don’t bankrupt ourselves trying to meet meet Paris Agreement targets.

The east coast of Australia will need 13 gigawatts of new gas fired electricity generation – the equivalent of building 26 new gas plants – within the next 25 years to back up the rollout of renewables.

The Australian Energy Market Operator’s (AEMO) finding that an extra 13 gigawatts would be needed was contained in its latest energy grid road map, released last week. It also warns that eastern Australia’s gas supply is running so low that emergency diesel fuel supplies would need to be built next to each new gas plant.

The absurdity of Greens blocking this is illustrated by the fact they will only operate a maximum 5% of the time. The emissions are minimal.

The absurdity of Conservatives preferring nuclear is that gas plants are cheap and easy to build. Even Canberra can build one for $600 million. Scratch that, they’ve upgraded the price to $1 billion now, in part because ScoMo chose a site in Kurri Kurri that has no gas supply!

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In short, we could build all 26 gas plants for less than one nuclear facility and it would produce much cheaper electricity!

So long as you have cheap fuel, which we do. Unless you let a foreign cartel steal it all on behalf of China.

Either we have 15% gas reservation or a $6Gj gas export levy or Australia’s East Coast energy transition will fail.

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It is that simple and always has been. Except for the gas cartel captured Resources Minister, Mad King, who is so hypocritical that she would sell her mother for a vote:

When it comes to energy in WA we are in a far better position than many of the Eastern States.

Thanks to the foresight and courage of the Carpenter Labor government, WA has relatively affordable and plentiful domestic gas for homes and businesses.

We also have sun in abundance. Which is why West Australians take advantage of this and have one of the largest uptakes of rooftop solar in the world.

Which is why it is beyond bizarre that Mr Dutton and his senior WA Liberals like Michaelia Cash want to plonk a nuclear reactor or two into Collie.

Damn right, replicate WA gas reservation on the East Coast, traitor, or no gas peaker will ever be built.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.