NSW energy supply ‘under siege’ as Snowy 2.0 delayed further as power stations shutdown

The former boss of the Snowy Hydro has blasted the plan to speed up NSW’s transition to renewable energy. Find out what he had to say.

The former boss of the Snowy Hydro has slammed the planned rapid transition to renewable energy by 2030 as “bulls--t”, the day after it was announced the key Snowy 2.0 project could be finished two years late.

Paul Broad, who quit as chief executive of Snowy Hydro last year, took aim at what he claimed were unrealistic timelines for phasing out coal and replacing the power with renewables.

“The notion that you can have 80 per cent renewables in our system by 2030... is bulls--t,” he told 2GB’s Ben Fordham.

“The truth is - we need this transition- if it ever occurs- it will take 80 years ... not eight”

“The suggestion we can do all this and (power) prices will come down is wrong. It’s just false.

“We need more gas for when the suns not shining and the wind is not blowing.”

Former Snowy Hydro CEO Paul Broad at the site. Picture: supplied

Mr Broad also took aim at comments made by federal energy Minister Chris Bowen on Wednesday.

Mr Bowen said on Wednesday he wasn’t aware there were delays with Snowy 2.0 until Labor came to power last year.

“The fact that these delays were hidden was inexcusable. AEMO hadn’t been informed, which is a very real failure because it … relies on the timely and accurate information to keep the lights on,” he said.

Mr Broad hit back at what he claimed was “political spin” from the minister.

“The first meeting with Bowen - I said 12 to 18 months,” he said.

“Why does his office want to put out this political spin? Fair dinkum. Tell the truth.”

WHAT SNOWY MESS MEANS FOR COAL AS ENERGY SUPPLY ‘UNDER SIEGE’

Major new energy project Snowy 2.0 will be delayed for up to two years, raising concerns over future power supply for NSW and leading one MP to claim the corresponding shutdown of coal-powered stations was creating an “energy vacuum”.

Snowy Hydro CEO Dennis Barnes confirmed on Wednesday the massive project – which is set to produce energy and storage to power three million homes a week when running – may not be online until 2029, citing the Covid-19 pandemic, supply chain issues, and difficulties with drilling at the site.

The news comes a week after coal-fuelled power station Liddell shut down – the first of five scheduled power stations set to close which contribute 13 per cent to the national energy network.

Federal shadow energy Minister Ted O’Brien said the news meant Australia’s “energy reliability is under siege”.

“The Albanese Labor Government has created an energy vacuum in Australia, with baseload power stations being ripped out of the grid without a replacement ready to go,” Mr O’Brien said.

Federal shadow energy Minister Ted O’Brien is worried about what happens next. Picture: NCA NewsWire / Martin Ollman

“Australia’s energy reliability is under siege with rolling delays and blowouts under Labor including the all-important 660MW Kurri Kurri gas plant which will not provide power for a year later than scheduled in 2024.”

The Australian Energy Market Operator (AEMO) warned in February that energy shortfalls could hit NSW as soon as 2025, but pledged on Wednesday Snowy’s delay would “not have a material impact on forecast reliability outcomes”.

The shutdown of coal-powered stations while new energy projects struggle to get online has led the NSW Government to investigate the impact on its power supply in coming years.

The Telegraph understands NSW energy Minister Penny Sharpe has directed the state’s energy department to analyse the impact of the delay.

“It’s disappointing news, but NSW is not relying on a single project to deliver the energy transition outcome in NSW,” she said.

“These delays are challenging but reinforce the need for all other actions to occur as soon as possible.”

Penny Sharpe has directed the state’s energy department to analyse the impact of the delay.. Picture: Gaye Gerard / NCA Newswire

Federal energy Minister Chris Bowen, addressing the Smart Energy Council conference on Wednesday, laid the blame at the former government’s feet, saying he wasn’t aware Snowy 2.0 was facing delays until Labor came to power.

“The fact that these delays were hidden was inexcusable. AEMO hadn’t been informed, which is a very real failure because it … relies on the timely and accurate information to keep the lights on,” he said.

Liddell’s 1200MW output has been covered by smaller renewable energy projects, while fellow coal-burner Eraring – which could shut as early as 2025 – produces 2880MW.

Snowy 2.0 will generate an extra 2000MW to the system, on top of the 5500MW Snowy Hydro already produces.

CEO NSW Minerals Council Stephen Galilee said the latest delay meant coal-powered station Eraring must be extended beyond its scheduled 2025 shutdown date.

“The fact that such an important project (Snowy 2.0) is now set to be delivered many years late, and billions of dollars over budget should send the strongest possible warning about the difficulties ahead,” he said.

“The transition path we are on is not going to be cheap, or quick, or easy. Those that have promised so much on energy policy should be held to account for the reality we all now face.”