There is planning to decommission another coal-fired power plant in New South Wales in 2025. The energy industry is planning the closure of Earing, the biggest power station in NSW. New reports on the energy market have supported the decision. In order to close Earing on time in 2025 the country must continue to achieve decarbonisation goals.
These decarbonisation goals include continuing with rooftop solar installations and increasing the scale of wind and solar within the state by 2030.
By doing this the state would be able to replace the electricity generation from the power station by the time it is decommissioning. This will hopefully mean that there will be minimal impact on consumers' energy bills.
Current reports have shown that there are a lot of renewable projects set to come online across the state meaning they would have enough electricity to meet demand. However, this is dependent on weather grid connections and processes can be locked.
As Australia is trying to move away from using coal-fired power plants, delaying the closure of this power plant would conclude in hiding fines for the state to pay. Any delays would also undermine the government's climate policy.
Does this mean less energy security?
Coal power plant closures usually tend to make people think that energy security is going to suffer because of this. However, this should not be the case if the renewable projects that are planned go ahead.
Although some talks have been had about extending the life of this power plant, it has been said that this could scare off investors that want to invest in clean energy projects. Scaring off investors could reduce the amount of energy there would be to back up supplies to make up for the lack of power from fossil fuels.
Industry leaders have stressed the importance of this power plant closing on time as otherwise NSW will have less investment in clean energy projects and therefore less energy security.
Will this affect my energy bills?
This shouldn’t affect energy bills as there will be no gaps in the energy supply as renewables should take over the amount of supply that the state was getting from the power plants.
Renewable energy can sometimes be an issue if a country is relying too heavily on it, this is because it is very dependent on external factors such as the weather, which can affect energy security. However, in NSW the industry is planning on having plans in place for this including battery storage.
Although the current outlook is that this will not have much impact on customers' bills in the area, this could change. We would suggest that businesses keep an eye on the energy market and look at their renewal in advance. If you need any help choosing the best time to renew your contract our energy consultants can help with that. Get a quote here or get in touch with us today.
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