❓ Ms. Mettam questions the Minister for Energy about addressing a forecast electricity supply shortfall, particularly regarding extending coal-fired power plant life and building new gas-fired power projects. The Minister explains AEMO's role and the limitations of coal, while affirming consideration of gas but not as a coal replacement.
AnsweredQoN 532Legislative Assembly
QuestionView source ↗
ENERGY — SUPPLY
532. Ms L. METTAM to the Minister for Energy:
I also extend my congratulations to
the Matildas; they have certainly done us proud.
I refer to the Australian Energy
Market Operator's 2023 Wholesale electricity market electricity
statement of opportunities for WA, which forecasts a shortfall of supply as
early as 2025–26 and the government's response today to extend the life of unit 6 at Muja C coal-fired
power station to April 2025, one month after the 2025 WA state election.
(1) To avoid AEMO's
forecast supply shortfall, which has blown out to 4 000 megawatts by 2032–33,
does the minister have any plans to further extend the life of coal-fired power
generators beyond their current retirement dates—yes or no?
(2) Is the
government considering building or funding new gas-fired power projects to
address the current forecast shortfall?
Mr W.J. Johnston : Madam
Speaker.
The SPEAKER : Sorry, I am just waiting to see what the
Leader of the House is doing.
A member interjected.
The SPEAKER : Would anyone
else like a drink? He is available.
532. Ms L. METTAM to the Minister for Energy:
I also extend my congratulations to
the Matildas; they have certainly done us proud.
I refer to the Australian Energy
Market Operator's 2023 Wholesale electricity market electricity
statement of opportunities for WA, which forecasts a shortfall of supply as
early as 2025–26 and the government's response today to extend the life of unit 6 at Muja C coal-fired
power station to April 2025, one month after the 2025 WA state election.
(1) To avoid AEMO's
forecast supply shortfall, which has blown out to 4 000 megawatts by 2032–33,
does the minister have any plans to further extend the life of coal-fired power
generators beyond their current retirement dates—yes or no?
(2) Is the
government considering building or funding new gas-fired power projects to
address the current forecast shortfall?
Mr W.J. Johnston : Madam
Speaker.
The SPEAKER : Sorry, I am just waiting to see what the
Leader of the House is doing.
A member interjected.
The SPEAKER : Would anyone
else like a drink? He is available.
AnswerView source ↗
(1)–(2) There
are two issues there. The first is the 2023 Wholesale electricity market
electricity statement of opportunities . I make clear, the shortfall that the member
described for the year 2032–33 is a shortfall after the
retirement of all the coal-fired power stations, including those that do not
belong to the government of Western Australia. The reason that AEMO publishes
these reports is that it can activate the tools it has available under the laws
of Western Australia to procure the energy needs of the state. That is the
reason the ESOO is published. It is called ''statement of opportunities''
for that specific reason. As the member knows from reading page 9 of the
report, it outlines the two additional tools it has available to it, including
the supplementary reserve capacity and non-co-optimised essential system
services. Both those tools are available to it in addition to the capacity
market that we have here in Western Australia. The way that it activates the private sector to respond to these
needs is by publishing the statement of opportunities. I make it clear:
that is the purpose for which the government of Western Australia, as the
former Liberal–National government did, arranges for this to be
published. That is the planning. We will not extend coal stations because they
no longer fit into the market.
I
will show the member the demand profile for week 31, which was the week of 25
to 31 July. The member can see how the demand goes up and down
constantly. A coal station can work at that level, but it cannot respond at
that level because it cannot be switched on to meet the high demand. That
problem is getting worse and worse because the minimum demand in the middle of
the day is falling; in fact, on an individual weekend
in October last year, it was below 700 megawatts. The chart here shows it below
1 200 megawatts . Coal-fired power
stations simply cannot fit into the system. Prolonging the life of coal-fired
power stations causes more problems for the system; it does not provide
solutions. What we said we would do at the time of the retirement, which is
what we have done, is manage the retirement dates with the needs of the system.
What was not expected three years ago, but is now known from the statement of
opportunities, is that demand is increasing. When we made the decision to close
the plant, demand was flat. Since then, there has been a changed circumstance.
In conversation with the Australian Energy Market Operator, we have agreed to
extend the life of Muja C6 for another six months so that it has a tool
available to use if it needs it over that summer.
In respect of gas generation
infrastructure, we said at the time we made the decision that we would not
build new gas infrastructure after 2030. So far as I can remember, we are not
at 2030 yet. The government has always said
that it would consider additional gas generation, but not in replacement of
coal. Coal is base load; gas is
peaking. They serve different purposes. I will use this chart to point out to
the member for Vasse that the peak only lasts for a couple of minutes;
it does not last for hours and hours. A gas-fired power station works well for
the peak because it can be switched on quickly and switched off quickly. That
is also why batteries are even better; they have an instantaneous response and
can be managed to exactly match demand, whereas that cannot be done even with a
gas station. A coal-fired power station physically cannot do the peak; therefore, it cannot be used as a peaking plant. The
purpose of a gas-fired plant and the purpose of a coal plant are
unrelated to each other. There is, of course, combined-cycle gas turbines, but
we are not talking about those. We are talking about peaking plants. Peaking
plants do not do the work; they do not and cannot replace coal-fired power
stations.
Equally, coal-fired power stations do
not replace open-cycle gas turbines. We currently do not have any detailed plan that we would implement in respect
of building additional open-cycle gas turbines. However , we retain the
flexibility to do that because, as I said at the time, we want to be flexible
and sensible. Unlike the Liberal and National Parties, which are driven by ideology,
we are not driven by ideology; we are driven by planning and common sense. That
is why the Australian Energy Market Operator continues to tells the government
of Western Australia that it wants us to close the plant once the other
infrastructure is in place. I am sure that we will talk about this further
today, but I make it clear that we work with the Australian Energy Market
Operator, we respond to the needs of the market and the state of opportunities
is about giving signals to the private sector, which provides the overwhelming
majority of electricity in the south west interconnected system and almost 100 per
cent of the electricity outside the south west interconnected system, and we
will continue to do that.
are two issues there. The first is the 2023 Wholesale electricity market
electricity statement of opportunities . I make clear, the shortfall that the member
described for the year 2032–33 is a shortfall after the
retirement of all the coal-fired power stations, including those that do not
belong to the government of Western Australia. The reason that AEMO publishes
these reports is that it can activate the tools it has available under the laws
of Western Australia to procure the energy needs of the state. That is the
reason the ESOO is published. It is called ''statement of opportunities''
for that specific reason. As the member knows from reading page 9 of the
report, it outlines the two additional tools it has available to it, including
the supplementary reserve capacity and non-co-optimised essential system
services. Both those tools are available to it in addition to the capacity
market that we have here in Western Australia. The way that it activates the private sector to respond to these
needs is by publishing the statement of opportunities. I make it clear:
that is the purpose for which the government of Western Australia, as the
former Liberal–National government did, arranges for this to be
published. That is the planning. We will not extend coal stations because they
no longer fit into the market.
I
will show the member the demand profile for week 31, which was the week of 25
to 31 July. The member can see how the demand goes up and down
constantly. A coal station can work at that level, but it cannot respond at
that level because it cannot be switched on to meet the high demand. That
problem is getting worse and worse because the minimum demand in the middle of
the day is falling; in fact, on an individual weekend
in October last year, it was below 700 megawatts. The chart here shows it below
1 200 megawatts . Coal-fired power
stations simply cannot fit into the system. Prolonging the life of coal-fired
power stations causes more problems for the system; it does not provide
solutions. What we said we would do at the time of the retirement, which is
what we have done, is manage the retirement dates with the needs of the system.
What was not expected three years ago, but is now known from the statement of
opportunities, is that demand is increasing. When we made the decision to close
the plant, demand was flat. Since then, there has been a changed circumstance.
In conversation with the Australian Energy Market Operator, we have agreed to
extend the life of Muja C6 for another six months so that it has a tool
available to use if it needs it over that summer.
In respect of gas generation
infrastructure, we said at the time we made the decision that we would not
build new gas infrastructure after 2030. So far as I can remember, we are not
at 2030 yet. The government has always said
that it would consider additional gas generation, but not in replacement of
coal. Coal is base load; gas is
peaking. They serve different purposes. I will use this chart to point out to
the member for Vasse that the peak only lasts for a couple of minutes;
it does not last for hours and hours. A gas-fired power station works well for
the peak because it can be switched on quickly and switched off quickly. That
is also why batteries are even better; they have an instantaneous response and
can be managed to exactly match demand, whereas that cannot be done even with a
gas station. A coal-fired power station physically cannot do the peak; therefore, it cannot be used as a peaking plant. The
purpose of a gas-fired plant and the purpose of a coal plant are
unrelated to each other. There is, of course, combined-cycle gas turbines, but
we are not talking about those. We are talking about peaking plants. Peaking
plants do not do the work; they do not and cannot replace coal-fired power
stations.
Equally, coal-fired power stations do
not replace open-cycle gas turbines. We currently do not have any detailed plan that we would implement in respect
of building additional open-cycle gas turbines. However , we retain the
flexibility to do that because, as I said at the time, we want to be flexible
and sensible. Unlike the Liberal and National Parties, which are driven by ideology,
we are not driven by ideology; we are driven by planning and common sense. That
is why the Australian Energy Market Operator continues to tells the government
of Western Australia that it wants us to close the plant once the other
infrastructure is in place. I am sure that we will talk about this further
today, but I make it clear that we work with the Australian Energy Market
Operator, we respond to the needs of the market and the state of opportunities
is about giving signals to the private sector, which provides the overwhelming
majority of electricity in the south west interconnected system and almost 100 per
cent of the electricity outside the south west interconnected system, and we
will continue to do that.
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