NSW’s power supply steady thanks to extra generators, Treasurer claims

NSW residents now won’t have to limit their power usage after generators stabilised the state’s supply, Treasurer Matt Kean has declared- while fending criticism about whether he can handle dual portfolios.

NSW’s energy outlook is looking “much better” after generators came online and residents no longer need to limit their electricity usage, Treasurer Matt Kean said.

Mr Kean met this morning with the Australian Energy Market Operator who said a generator that came online on Thursday and one expected to come online on Saturday has put NSW in a better position.

“This morning’s discussions are very good news for not only people in NSW but across the national energy market,” Mr Kean said.

“AEMO have described the energy situation as much healthier and that’s good news.”

The generator added 680 megawatts to the state’s energy system, Mr Kean said.

turn their heaters on, with thew state’s power supply “much better”.

NSW residents have been given the green light to

After earlier this week telling NSW to restrict electricity usage and turn off their dishwashers in fear of winter blackouts, Mr Kean said there was now no need to fear.

“We aren’t saying that you need to conserve energy, just be conscious of it, that’s not only for the grid’s interest but for your interest,” he said.

“There’s no need to take any action at the moment, everything is looking much better than earlier in the week.”

It comes after the Treasurer was granted special powers to direct coal companies to provide fuel for energy operators.

On Friday Mr Kean refused to elaborate on how these special powers would work or how long they would be in place.

“We are giving ourselves special powers we can have on standby if the need arises, we don’t envisage that that need will arise at this stage,” he said.

It comes after Mr Kean was given special powers over the state’s energy grid.

The Treasurer said the special powers would look like “us taking whatever steps are necessary to keep the lights on”.

Mr Kean also said he is up to the job of being both the Treasurer and the Energy Minister despite facing historic crises in both portfolios.

Multiple NSW Liberals told The Daily Telegraph on Thursday that Mr Kean should hand over the Energy ministry to someone else who would be able to give it their full attention.

But Mr Kean rejected the claim that Treasury and Energy are both too big to be done by one person.

“They’re not,” he said.

“There are many ministers with many portfolios. I’ll continue to focus on … making sure we get through this challenging time in the energy system, but I’ll also make sure that we are going to deliver a cracking budget on Tuesday,” he said.

Mr Kean said he did not expect to have to use emergency powers to force coal providers to direct fuel to energy companies, despite rushing them through in regulation on Thursday night.

Mr Kean also hit back at criticism about whether he could handle two large portfolios like the Treasury and Energy. Nikki Short

“We don’t envisage we will be needing these powers but we’ve got them in our back pocket in the event things change,” he said.

It comes as coal companies will be directed to give fuel to power generators under emergency state government regulations enacted to keep the lights on amid the worsening energy crisis.

Regulations to impose the extraordinary powers were taken to governor Margaret Beazely for final sign-off late on Thursday night.

According to one government source, the powers even direct coal companies to provide fuel “below market cost”.

The Daily Telegraph was told that the emergency powers are a “precautionary” measure that will give the government the power to direct coal companies to supply power stations if needed.

It is understood the government sought the powers in case they may be required, rather than in anticipation of any immediate shortfall of coal to fuel power generators.

NSW Treasurer Matt Kean at a press conference for pre-school education on Thursday, before he later addressed energy supply at a late-night NSW executive council meeting. Picture: Nikki Short

But in a sign of just how urgent the powers are to secure electricity supply amid the current energy fiasco, multiple NSW Ministers were contacted late on Thursday in an attempt to find someone to attend a last-minute “executive council” meeting to bring the regulations into force.

Two ministers must be present at Executive Council meetings with the Governor.

The move to force coal companies to give fuel to generators comes amid ongoing refusals from Energy Minister Matt Kean to detail his discussions with Origin Energy about the future of the Eraring power station.

As The Daily Telegraph revealed on Wednesday, the NSW government knocked back a proposal for Origin to keep Eraring open longer.

Under the proposed deal, Origin would have committed to maintaining two of Eraring’s four generators until 2028, if the NSW government covered 90 per cent of any losses incurred from running Eraring at half capacity.

Meanwhile, federal Energy Minister Chris Bowen yesterday slapped down suggestions that more coal is the solution to Australia’s ­energy crisis.

In a feisty response to a journalist’s questions about coal, Mr Bowen said the solution to the energy crisis was to invest more in renewables.

“The problem is there is not enough investment in renewable energy. There hasn’t been enough investment in storage,” he said.

“Yes, you can say the wind doesn’t always blow and the sun doesn’t always shine. The rain doesn’t always fall either but we can store the water and we can store renewable energy if we have the investment.

“That investment has been lacking for the last decade,” he said.

The press conference was called after Anthony Albanese took a major step on climate change, with the Prime Minister officially beefing up Australia’s emission reductions targets, insisting the nation had turned the climate corner.

Kean’s coal aversion turns out the lights in NSW

Underfire NSW Energy Minister Matt Kean has been accused of ducking responsibility for the current electricity crisis as critics question if he can keep the state’s lights on as well as deliver the NSW budget on Tuesday.

His handling of the crisis has led to growls of discontent among nervous backbenchers and open calls for him to quit his post and concentrate on being treasurer.

“NSW needs a full-time energy minister,” former resources minister, Senator Matt Canavan said. “Matt Kean has got to go.”

“Matt Kean is a big reason why we are in the mess we are in today because of his denigration of coal and gas in the past.

“We need a credible voice to give investors in coal and gas more confidence,” Sen Canavan said.

Matt Kean is juggling the two big jobs of NSW Treasurer and Energy Minister. Picture: Nikki Short

Mr Kean’s office dismissed Matt Canavan’s comments and said the crisis was due to “global factors”.

“Matt Canavan is as ineffective and irrelevant as a former minister as he was as a minister, and clearly lacks the common sense to understand this is caused by global factors and ageing equipment across the country,” a spokeswoman said.

The defiant response comes as Liberal Party figures expressed their discontent with Matt Kean’s handling of the energy fiasco, with multiple MPs telling The Daily Telegraph that Kean should hand over the portfolio so someone else could make it a full-time priority.

The calls come as the 40-year-old juggles both the energy and treasury portfolios during a cost of living crisis and a power emergency, with one NSW Liberal MP saying there is real risk blackouts and power shortages would overshadow Tuesday’s budget, which would be a “tragedy”.

Two years ago Mr Kean said “the business case for gas is on the clock” on the eve of the Independent Planning Commission finally granting conditional state environmental approval for the $3.6 billion Narrabri gas project.

And he warned investors gas was “a big gamble” and that instead they needed to be moving towards “cheaper technologies, cheaper ways to deliver energy”.

But as the energy crisis began to bite last week he blamed the Narrabri developer for the lack of gas supply.

“It’s now up to Santos to crack on with the job. Get that gas out and get it into homes and businesses in NSW,” he said.

Privately senior figure are furious at his comments after struggling through years of red and green tape that mean the gas is still in the ground.

The project is currently stalled before the Native Title Tribunal.

Meanwhile NSW is relying on gas from Queensland and Victoria to meet any shortfalls in energy supply.

At 9am on Thursday the Australian Energy Market Operator showed a 15 per cent drop in supply from coal powered generators was picked up by an increase in gas supply from interstate.

The supply of electricity from renewable sources remained stable at just 16 per cent of NSW’s total energy needs.

A gas well for the Santos Narrabri gas project. Picture: Nathan Edwards

But despite years of boosting renewables and saying gas “may be useful in the short term” and “is a hugely expensive way of generating electricity” Mr Kean on Thursday refused to take any responsibility for the current problems.

“I didn’t invade Ukraine, I didn’t make the generators old bits of equipment and I certainly didn’t make the weather cold,” he told Ben Fordham on 2GB.

Santos’ Narrabri gas project could pump out enough gas — 70 petajoules a year — to cover half of NSW’s needs, according to planning documents.

The Daily Telegraph has highlighted the importance of gas projects, including the Narrabri development, for almost a decade — with an emphasis on firming up NSW’s domestic supply.

A spokesman for Mr Kean said in three years the minister had overseen the approval of projects such as Port Kembla’s gas terminal, the Waratah Network Battery, and increased capacity and coal supply at Mount Piper power station, as well as the ambitious electricity infrastructure road map which aims to invest in renewable energy backed up by storage projects.

During that time energy giants AGL and Origin accelerated plans to close their respective coal-fired power stations, while AGL commenced plans to shut down its Liddell Power Station.

Asked what Mr Kean would do to fix the energy crisis, his office said “in the short term we will work proactively with the market operator, energy suppliers and energy generators to secure sufficient energy supply. Long term we have a country-leading road map to transition to more reliable energy sources”.

“It doesn’t take an expert to realise this is a global issue affecting the US, Europe, and most of Australia, with both Queensland and South Australia facing blackouts this week,” Mr Kean’s office added.

Industry bodies said NSW households were paying the cost for a lack of energy field foresight.

Acting chief executive of gas and oil industry representative body APPEA Damian Dwyer.

Acting chief executive of gas and oil industry representative body APPEA, Damian Dwyer, said NSW households and businesses were paying up to $2 a gigajoule extra to pipe gas in from Queensland.

“The ACCC and others have repeatedly highlighted that the lack of development in NSW and Victoria is making gas more expensive and limiting supply,” he said.

“The fact that Santos’ Narrabri gas project remains the only potential source of local gas in NSW shows just how far the state has fallen. With effective policies, the Narrabri gas project and other potential NSW projects could have been in operation years ago.”

Daniel Wild, the research director at The Institute of Public Affairs, said energy uncertainty wracking the east coast had been brewing for years.

“This is not an accident — what is happening in terms of supply shortages and explosive price hikes is an outcome of policy promoted by both sides of government,” he said.

He said the Narrabri project — held up for years by bureaucratic red tape — would have helped during the current energy drama.

“The project would have alleviated some of the supply shortages and associated price hikes we’re seeing now,” he said.

“A lack of political leadership and vision has meant we’re seeing the problems we are today.”