The construction of a new high-efficiency, low emissions coal-fired power station, being considered by the Turnbull government,
would cost $2.2 billion — considerably less than the $3bn of subsidies handed out to renewable projects each year, a new technical study shows
.With Australians facing further hikes in their electricity and gas bills following moves by energy companies over the weekend to
increase bills by up to 20 per cent, Malcolm Turnbull is under pressure to deliver relief for households, small businesses and manufacturers.
New analysis, compiled by power and energy sector specialists GHD and Solstice Development Services,
reveals it would cost $2.2bn to build a 1000MW ultra-supercritical (USC) coal-power plant and that it would deliver the cheapest electricity on the market.The HELE coal plant, which the Turnbull government has not ruled out funding, would produce electricity at $40-$78 per megawatt hour, compared with gas at $69-$115/MWh and solar at $90-$171. The 550-page technical study, commissioned by the Minerals Council of Australia and the COAL21 Fund, reveals that clean-coal plants would drive down energy prices, and offers the Prime Minister an economic blueprint on the viability of new coal-fired stations.
It comes just four months after it was revealed taxpayer subsidies to meet state and federal renewable energy targets reached $3bn in the 2015-16 financial year, with about 75 per cent of the cost being collected from consumers paying extra in their electricity bills.
Comment: Political courage needed on coal
The overall cost of subsidising renewable energy generation has nearly doubled since 2011, and the RET continues to be a political headache for the Turnbull government.
It is sticking to the 23.5 per cent target by 2020, despite calls by former prime minister Tony Abbott, who was involved in establishing the RET,
to freeze it at the current rate of 15 per cent — a move he says would dramatically lower power bills.
COAL21 chief executive Greg Evans, who is also an executive director of the Minerals Council, said the report showed that HELE coal plants, which would have “operating lives of several decades”, were viable and affordable options to replace the nation’s ageing coal-fired power stations. “
The report confirms that USC coal generation can deliver on the priorities of affordability, reliability and low emissions,” he said,
adding that coal-fired generation remained the “cheapest and most reliable energy source in Australia, available 24 hours a day, every day”.
meanwhile... here in Victoria we built a worthless desal plant costing over 25 Billion...