Coal news and updates

The Federal Minister for Energy and Emissions Reduction, Angus Taylor, is battling to get support from the states and territories for his plan to get electricity retailers to pay coal and gas-fired power generators to keep operating.

 

The federal government wants to introduce a Physical Retailer Reliability Obligation (PRRO) to ensure there is enough energy available in the National Electricity Market (NEM) at all times to fill gaps when wind and solar power cannot meet demand.

 

The PRRO would require energy retailers to pay for spare energy capacity in case it is needed.

 

That spare capacity could come from renewable resources like batteries, pumped hydro, and demand management, but the federal government wants it to also include unused capacity in coal and gas-fired power plants.

 

That could see energy retailers giving money to coal-fired plants and prolonging their use through the system, if their existing spare capacity is cheaper than developing new storage options.

 

While the Commonwealth is aggressively promoting it, the states and territories are yet to be convinced, given the scheme could undermine investment in the renewable alternatives.

 

A spokeswoman for the Victorian government said a "clear transition plan to maintain system reliability" was necessary, but pointed to the need for more work on the design plans.

 

"There has been no agreement on a specific model, including whether coal should be eligible for payments," she said.

 

"In assessing any model, Victoria will be guided by the need for a well-managed transition that aligns with our strong emissions reduction targets."

 

The ACT government is supportive of a system to ensure capacity in the electricity system, but has major reservations about the details of the proposed PRRO.

 

Source : https://www.abc.net.au/news/2021-08-26/states-push-back-angus-taylor-subsidies-coal-gas-power-plants/100410770