PM Morrison promises to fund upgrade of private NSW coal power station

Barnaby Joyce has boasted that the Nationals have secured a new coal-fired power station after Scott Morrison unveiled details of the government’s energy plan.

Barnaby Joyce has boasted that the Nationals have secured a new coal-fired power station for Queensland after Scott Morrison unveiled details of the government’s energy plan today.

The Collinsville power station proposal for central Queensland is one of a number of projects that will be considered in a feasibility study announced by Prime Minister Morrison today as he tries to appease rebel backbenchers in marginal seats ahead of the election.

Mr Morrison also announced a “very small project” to upgrade a coal-fired power station in Lake Macquarie in NSW was on a shortlist of 12 projects the government could underwrite in a bid to make the energy market more reliable.

Mr Joyce, the former deputy prime minister, welcomed the announcement as a win on social media.

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Mr Morrison noted that “there is no commitment to underwrite or support any of those projects”.

“We want to do the proper analysis to work out which project or which group of projects actually delivers on the need,” he told reporters in Brisbane.

Mr Morrison said the study was about seeking to meet the “very specific industrial needs of north and Central Queensland in terms of power usage”.

He did not specify which of the two coal-fired power stations in Lake Macquarie (Vales Point Power Station or Eraring Power Station) was being considered for an upgrade.

The announcement comes after Nationals MPs led by Mr Joyce called for a new coal-fired power station to be built, sparking a damaging public fight between city-based Liberals and Nationals and regional MPs in marginal seats.

It is understood the shortlist of 12 projects, down from 66, was discussed when cabinet met in Brisbane today.

A protester dressed as Scott Morrison holding a piece of coal on March 15, 2019 in Hyde Park, Sydney, Australia. Picture: Getty

Mr Morrison insisted that the government was “agnostic” when it came to which energy sources should boost the nation’s energy grid.

“The Government was able to agree a short list of projects, which will now be examined in closer detail before any final decision is made on any underwriting,” he said.

“Those projects will deliver around 4000 megawatts, which is about twice the size of what we’re talking about up at current stations like Liddell and other coal-fired power stations.”

The projects were a mix of gas, hydro and “one very small project, which is a coal upgrade project in New South Wales in Lake Macquarie,” he said.

“Wherever it comes from, we just want what is going to provide for the reliability that is necessary.”

It comes after the ACCC last year recommended the government underwrite new energy projects to boost reliability and drive down power prices as part of a review of the nation’s energy market.

Scott Morrison looks at a piece of coal during House of Representatives Question Time at Parliament House in Canberra. Picture: AAP

Greens MP Adam Bandt MP slammed the announcement today, saying: “Any ‘shortlist’ that includes coal is a shortcut to worse droughts and more bushfires.”

“Spending taxpayer money on coal is like giving money from the health budget to a tobacco company,” he said.

“The government shouldn’t be upgrading coal, it should be shutting it down.”

Mr Bandt said the Greens would seek to amend the government’s “big stick” legislation to try to “stop the government pouring precious taxpayer dollars into coal”.

Scott Morrison's energy projects under consideration.

There is likely less than a week of parliamentary sitting days left before the election is called.

Earlier this month, Energy Minister Angus Taylor said was “meticulously” going through the 66 submissions to the government’s plan to underwrite power projects.

“You can’t make mistakes on this stuff, it is too important,” he said.

“We’re not going to allow mistakes to happen and we will announce it as that work is completed.”

It’s likely a pool of money will be allocated towards prospective projects in the April 2 budget.

Energy Australia said the industry is waiting for policy certainty to confidently give the go-ahead to investments.

The sector would be willing to invest in new generation projects if there was certainty, said Mark Collette, who is responsible for Energy Australia’s energy business.

A mural depicting Prime Minister Scott Morrison in a flooded Sydney harbour holding a lump of coal painted by the nephew of former prime minister Kevin Rudd, artist Van T Rudd is seen in Hosier Lane in Melbourne. Picture: AAP

ENERGY IN THE BUDGET SO FAR
* $2 billion for a 10-year climate solutions fund, which is a rebranded Emissions Reduction Fund* $1.38 billion for the Snowy Hydro expansion
* $56 million to fast-track a second electricity interconnector between Tasmaniaand Victoria