The Greens condemn the New South Wales Labor government announcement of a major new firming tender that explicitly excludes standalone batteries and pumped hydro, in order to underwrite the delivery of new gas-fired power plants.
The planned tender for a new Long Term Energy Supply Agreement (LTESA) will seek 1.5 gigawatts of new capacity, and will be designed in such a way that will preclude renewable based storage solutions from being able to participate. An LTESA is an options contract that guarantees minimum revenues and underwrites profitability for an energy project, paid for by contributions from NSW energy customers.
Gas has always been permitted to bid for Long Term Energy Supply Agreements, but their projects have never stacked up economically against renewable energy. The Labor Government’s decision to create this LTESA for gas firming is them acting against the market signals that are forcing out fossil fuels in favour of cheaper renewables, and leaning on the scales in favour of the gas industry.
As stated by Abigail Boyd, Greens NSW Energy Spokesperson:
“This decision by the NSW Labor Government is an astonishing betrayal. It locks in higher prices for households, higher emissions and climate disaster for this state. It also will take away supposedly limited gas supply from industries that are currently struggling to decarbonise, directly undermining the viability of our domestic manufacturing sector. All while protecting and underwriting fossil fuel profits at the expense of energy bill payers.
“Gas has always been permitted to bid for Long Term Energy Supply Agreements, but their projects have never stacked up economically against renewable energy. This decision by the NSW Labor government sees them stepping in to massively tilt the table in favour of carbon intensive projects which deliver the very worst price outcomes for consumers.
“This Labor government has seen how well renewables are working at driving down power bills and driving gas out of the market, and their response has been to create a mechanism to underwrite fossil fuel revenues with taxpayer money. Origin Energy and Energy Australia must be delighted.
“Labor has already confirmed they have no intention of ever bringing the energy mix of this state to 100% renewables. We’re now seeing the terrifying reality of the planned scale of their fossil fuel build out ambitions. This Minns Labor government has absolutely no credibility on energy and climate change. They are climate vandals.”
