Coal news and updates

Coal generation is very profitable right now – thanks to the NSW government

The inability of NSW to get the new wind and solar built in a timely fashion is down to the dual issues of inefficient planning approval process and delays in the transmission build out. It is also down to insufficient planning and a lack of leadership that is hurting consumers.

Both these issues are solvable, but it’s really the planning process where NSW has performed most poorly, mishandling regional NSW at nearly every step: The process is not clear enough, not firm enough, and not responsive enough. It’s neither fish nor fowl, but simply stuck in a bog.

It seems to take 5 years to get a wind farm through the planning/EIS process. In my view the NSW Government is inexcusably culpable for this state of affairs. With all due respect to the vast majority of people that are secret NIMBYs, this is a case where the state interest must prevail.

At the same time, renewable developers and state energy institutions like EnergyCo need to learn how to obtain social license in regional NSW. You don’t get there by simply telling land owners what’s happening, you show up with senior people and treat them with respect.

The combination of the lack of new supply and the legislated fixed coal prices means that the coal industry has been able to bury its snouts in the trough of opportunity in NSW.

No-one can blame generator management for the fact that the State Government have indirectly handed them the keys to the Treasury by failing to ensure new supply and by fixing their costs at a level enabling them to laugh all the way to the shareholder meeting.