❓ Question regarding the impact of Synergy's generation capacity reduction on the electricity market. The Minister's answer discusses excess capacity, renewable energy growth, coal's role, and potential impacts of federal energy policies, particularly on Collie.
AnsweredQoN 260Legislative Assembly
QuestionView source ↗
SYNERGY — GENERATION CAPACITY
260. Mr G.M. CASTRILLI to the Minister for Energy:
I refer to the minister's
recent announcement regarding the reduction of Synergy's generation
capacity by 380 megawatts. Can the minister please update the house on how this
announcement will impact the electricity market?
260. Mr G.M. CASTRILLI to the Minister for Energy:
I refer to the minister's
recent announcement regarding the reduction of Synergy's generation
capacity by 380 megawatts. Can the minister please update the house on how this
announcement will impact the electricity market?
AnswerView source ↗
I thank the member for the question;
it is a very important one. As the member knows, we are going through a major review of the energy sector. Since I have
been on my watch we have closed
down over 400 megawatts of installed capacity. The reason we are doing that is twofold. We have substantial excess capacity.
Even after the closure of those 400 megawatts, we still have more than 1 000 megawatts
of excess capacity. At the same time we are growing the renewable sector significantly, and it will continue to grow,
aligned with the commonwealth energy targets of between 27 and 28 per cent of
total generating capacity on a national basis being renewable. I have asked
Synergy to give me some advice on those 380 megawatts.
One of the biggest challenges and a criticism
that I have had is that that might include some coal, and it may. W e have not decided on that. I can say
a couple of things. One of our greatest challenges going forward is that coal
supplies about 30 per cent of our electricity and it has the lowest price by a substantial
margin. How do we accept and adapt to the renewable revolution and keep
electricity costs low, which is a priority to this government at least, and also address the coal supply? If we do
not get it right, we get South Australia, which the member
for Collie–Preston raised appropriately the other day. In South
Australia, Alinta announced the closure of its only remaining coal-fired power
station, and immediately prices went up by 30 per cent. Also, because South
Australia relies now on wind power, it will be highly exposed to blackouts next
year if there is a very hot
summer. When the weather is hot in South Australia, like here, the wind does
not blow, and South Australia does not have anything but wind-produced energy.
Going forward, how do we adjust it? The big issue is that a federal election is
on and the two parties, Labor and Liberal, are coming up with distinctly
different policies. The Shorten policy is to move to 45 to 50 per cent renewables
by 2030. I will tell members something: that will close down most of the
coal-fired power stations in Collie.
Mr
M.P. Murray interjected.
The
SPEAKER : Member for Collie–Preston!
Dr
M.D. NAHAN : If that happens, in about 10 years Muja C and D will require
substantial new investment.
Mr
M.P. Murray interjected.
The
SPEAKER : Member for Collie–Preston, I call you to order for the
first time.
Dr M.D. NAHAN : It
is not only Shorten's policy; it is also the WA Labor Party's
policy. To commit to 45 to 50 per cent renewables by 2030 will lead to the
closure of Muja C and D. That is the Labor Party's policy. I can commit
to putting pressure on reducing the volume of coal, but we are not committing
to 45 to 50 per cent renewables. We will be the friend of coal and the friend
of Collie. I asked the member for Collie–Preston to do likewise but he
cannot because he is in the wrong party.
Several members interjected.
Dr
M.D. NAHAN : The Labor Party is committed to eliminating coal.
Mr
F.M. Logan : Go down to Collie and say that!
Dr
M.D. NAHAN : I will go to Collie. You have got to deny you hate Collie—I
love Collie! We have invested in the highway. We invested in Muja A and B and
renegotiated the Premier Coal contract. What has Labor done? It has banned
coal.
Several members interjected.
Dr
M.D. NAHAN : Come over and be constructive.
Several members interjected.
The
SPEAKER : Through the Chair!
Mr
M.P. Murray : We asked you to come down eight weeks ago. Why haven't
you come down there?
Dr
M.D. NAHAN : I am waiting for the member to come over. There is space.
The
SPEAKER : Through the Chair.
Dr
M.D. NAHAN : Do the right thing by your members. Come on over and defend
coal.
it is a very important one. As the member knows, we are going through a major review of the energy sector. Since I have
been on my watch we have closed
down over 400 megawatts of installed capacity. The reason we are doing that is twofold. We have substantial excess capacity.
Even after the closure of those 400 megawatts, we still have more than 1 000 megawatts
of excess capacity. At the same time we are growing the renewable sector significantly, and it will continue to grow,
aligned with the commonwealth energy targets of between 27 and 28 per cent of
total generating capacity on a national basis being renewable. I have asked
Synergy to give me some advice on those 380 megawatts.
One of the biggest challenges and a criticism
that I have had is that that might include some coal, and it may. W e have not decided on that. I can say
a couple of things. One of our greatest challenges going forward is that coal
supplies about 30 per cent of our electricity and it has the lowest price by a substantial
margin. How do we accept and adapt to the renewable revolution and keep
electricity costs low, which is a priority to this government at least, and also address the coal supply? If we do
not get it right, we get South Australia, which the member
for Collie–Preston raised appropriately the other day. In South
Australia, Alinta announced the closure of its only remaining coal-fired power
station, and immediately prices went up by 30 per cent. Also, because South
Australia relies now on wind power, it will be highly exposed to blackouts next
year if there is a very hot
summer. When the weather is hot in South Australia, like here, the wind does
not blow, and South Australia does not have anything but wind-produced energy.
Going forward, how do we adjust it? The big issue is that a federal election is
on and the two parties, Labor and Liberal, are coming up with distinctly
different policies. The Shorten policy is to move to 45 to 50 per cent renewables
by 2030. I will tell members something: that will close down most of the
coal-fired power stations in Collie.
Mr
M.P. Murray interjected.
The
SPEAKER : Member for Collie–Preston!
Dr
M.D. NAHAN : If that happens, in about 10 years Muja C and D will require
substantial new investment.
Mr
M.P. Murray interjected.
The
SPEAKER : Member for Collie–Preston, I call you to order for the
first time.
Dr M.D. NAHAN : It
is not only Shorten's policy; it is also the WA Labor Party's
policy. To commit to 45 to 50 per cent renewables by 2030 will lead to the
closure of Muja C and D. That is the Labor Party's policy. I can commit
to putting pressure on reducing the volume of coal, but we are not committing
to 45 to 50 per cent renewables. We will be the friend of coal and the friend
of Collie. I asked the member for Collie–Preston to do likewise but he
cannot because he is in the wrong party.
Several members interjected.
Dr
M.D. NAHAN : The Labor Party is committed to eliminating coal.
Mr
F.M. Logan : Go down to Collie and say that!
Dr
M.D. NAHAN : I will go to Collie. You have got to deny you hate Collie—I
love Collie! We have invested in the highway. We invested in Muja A and B and
renegotiated the Premier Coal contract. What has Labor done? It has banned
coal.
Several members interjected.
Dr
M.D. NAHAN : Come over and be constructive.
Several members interjected.
The
SPEAKER : Through the Chair!
Mr
M.P. Murray : We asked you to come down eight weeks ago. Why haven't
you come down there?
Dr
M.D. NAHAN : I am waiting for the member to come over. There is space.
The
SPEAKER : Through the Chair.
Dr
M.D. NAHAN : Do the right thing by your members. Come on over and defend
coal.
Explore WA Government Data
Search the full archive in the free dashboard, or query programmatically via API.
Explore more
Government Gazette
Appointments, regulatory notices, planning changes.
Hansard
Debates, questions, speeches and sentiment.
Tabled Papers
Reports and documents tabled in Parliament.
Committees
Committee profiles and recent reports.
Regulations
Subsidiary legislation with filters and summaries.
Bills
Proposed laws and parliamentary progress.
Acts
Current WA legislation and summaries.
Explanatory Memoranda
Bills with EMs (text/PDF) available.
Members
MP profiles, party breakdown and rankings.
Pollie Rankings
Data-driven rankings across 19 categories.
Amendment Chains
Track how schemes and regulations evolve over time.