Coal plant extensions not needed, Energy Security Board says

The Energy Security Board says extensions of coal plants beyond planned closure dates are not required and there is no need to contemplate a Plan B as part of the energy transition.

The Energy Security Board says extensions of coal plants beyond planned closure dates are not required and there is no need to contemplate a Plan B as part of the energy transition.

ESB chairwoman Anna Collyer made those comments as Origin Energy said it was considering whether to delay the closure date for Australia’s biggest coal plant.

The rapid fire exit of coal power plants this decade will require 45 gigawatts of new power supply by 2030, nearly the entire capacity of the current market.

However, the ESB said there was no appetite for keeping coal operating longer than the current closure dates.

“I think the last thing anybody wants to see is any extension to the lives of coal-fired power stations,” ESB chair Anna Collyer said on Monday.

“We are doing what we wanted to do, which is to bring that forward. We can now see the industry and the coal plants themselves are taking that step and saying this is what we need to exit from the market so that we can achieve that final objective.”

“So I really don’t want to talk about a plan B. I want to really focus in on Plan A, and make sure that we’re doing absolutely everything that we can to achieve that.”

Market regulators have warned of an escalating blackout risk as coal plant closures, transmission delays along with rising demand and a gap in replacement generation sparked a call for an ­urgent response from industry to plug the supply shortage.

Origin Energy indicated it was considering whether to delay the closure date for Australia‘s biggest coal plant amid a volatile energy transition and soaring wholesale power prices.

The power giant earlier this year pulled forward the shutdown of NSW’s Eraring plant by up to seven years to August 2025 but said the final date was under evaluation.

“At the time we communicated that we will continue to look at the market and the way it evolves over time. And so that is a consideration for us – it’s a live and active one – and we will continue to do that,” Origin chief executive Frank Calabria told a conference in Sydney on Monday. “You can see the markets obviously going through quite an extraordinary time and we have to factor that into our thinking, as do states and the federal government and everyone else. So we look forward to working with them.”

Delays in transmission and Snowy 2.0 have contributed to a power crunch leading experts to question whether Eraring should stay open longer to avoid potential blackouts. Eraring accounts for a quarter of NSW supply.

At least five coal power plants will close this decade, while pressures will grow on the remaining coal generators, requiring a rapid step-up in new generation.

The 45GW of supply needed by 2030 will be dominated by 36GW of generation through solar and wind with 9GW from new firming capacity like batteries, pumped hydro and gas.

Engineering giant Worley said the dismissal of fossil fuels showed the industry had lost control of the path to net zero amid growing concerns over energy security following Russia‘s invasion of Ukraine.

“We have lost control of the narrative,” Worley chief executive Chris Ashton said.

“Those who are maybe at one extreme or the other have got control and as a result of that we don‘t have a balanced, informed, accurate narrative.”

Gas supplies in Europe have been crunched with a halt on supplies from Russia sending household and business bills soaring through the continent.

However, Worley said those pressures did not mean the fossil fuel should be extinguished in favour of a rapid switch to renewables.

“If you look at energy prices and the energy shock in Europe, yes, it was caused by Russia invading Ukraine, but there’s some out there who believe there isn’t a future for gas in the transition,” Mr Ashton said.

“Well look at the absence of gas in Europe and what it‘s done for energy. So we have to communicate the need for a managed just transition but a deliberate approach to transitioning to zero and low carbon energy sources over the next 28 years.”