NSW backs gas plant to support renewable energy grid

Summarised from 2 outlets · Updated 13 Oct, 02:32 · Archive

New South Wales has announced a tender for a gas-fired peaking plant to support its renewable energy grid.

New South Wales has announced a tender for a gas-fired peaking plant designed to provide backup electricity for its renewable energy grid. Energy Minister Penny Sharpe said gas-fired stations were important as the state faces a reliability shortfall in 2033-34, according to government forecasts. The project will be included under the Long Term Energy Services Agreement, which guarantees operators a minimum revenue floor.

The state Labor government is seeking to boost its economic-management credentials ahead of the state election in March. However, the move puts it in conflict with federal Labor, which excludes fossil fuels, including gas, from its direct underwriting programme, the Capacity Investment Scheme.

Ms Sharpe said gas-fired power stations would operate only occasionally but would play a critical role in maintaining reliability during rare periods when renewable generation is low and available storage has been exhausted. While technologies other than gas are eligible for the 1500MW firming project, analysis provided to the government suggested a gas-fired peaking plant would be the most likely solution. The tender will be conducted by independent NSW Consumer Trustee, ASL, with consultation on the proposed design before launch in 2027.

How it is being reported

• State backs gas as Labor leaders split on grid fundingOne state is preparing to support a gas peaking plant to shore up the renewable grid, as its government pledges fiscal restraint ahead of an upcoming vote.The West Australian · 13 Oct, 02:10
• State backs gas as Labor leaders split on grid fundingOne state is preparing to support a gas peaking plant to shore up the renewable grid, as its government pledges fiscal restraint ahead of an upcoming vote.Perth Now · 13 Oct, 02:10

In this story: New South Wales · Penny Sharpe · Daniel Mookhey · Federal Labor · NSW Consumer Trustee

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