Matt Kean hits out at AGL
NSW Energy Minister Matt Kean has launched an attack on AGL after it blamed the state‘s new energy policy for a decision to defer a Newcastle gas plant.
NSW Energy Minister Matt Kean has launched an attack on AGL Energy after the power giant blamed the state‘s new energy policy for a decision to defer a Newcastle gas plant and giant battery at Liddell.
Big energy producers and users had already raised fears over a plan by the NSW government to underwrite investment in renewable and storage generation, saying the move would distort market signals and detract from a national approach already underway.
AGL said the state‘s energy road map – which aims to attract $34bn in private investment spread through renewable energy zones – meant it would have to defer and review the two major NSW projects as it seeks to understand the implications of the policy.
However, Mr Kean rubbished the move by AGL as a convenient excuse given several years of delays in sanctioning the Newcastle gas plant.
“AGL promised they‘d build this gas peaker in 2018 and we haven’t seen a sod being turned. So this seems like a bit of a convenient excuse if you ask me,” Mr Kean told a business conference on Monday.
The Australian Energy Council – which represents the big three of AGL Energy, Origin Energy and EnergyAustralia – has also said the NSW move will detract from a national approach already underway.
Mr Kean said the big producers could move aside if they were not prepared to invest.
“I‘m here to look after the business and families of NSW. If the vested interests want to stand in the way, I say to them get out of the way. Let us get on with delivering cheaper, reliable energy,” Mr Kean said.
“The people complaining about this are the ones that don‘t want this competition in the market – they don't want lower prices because they want to continue to make super profits at the expense of the families of NSW and I say that’s unacceptable.”
Federal Energy Minister Angus Taylor earlier took aim at Mr Kean, criticising the NSW government for a lack of consultation over its energy blueprint, noting AGL Energy’s decision to pause development of major investments.
“AGL has said that the NSW announcement has impacted their investment plans. We are currently working through the details of that policy,” Mr Taylor said. ”The Commonwealth would like to see the modelling behind the policy. And I’m confident that we can work through it. NSW has indicated its strong intent to get to a sensible outcome.”
AGL chief executive Brett Redman says he was concerned the NSW government move was potentially doubling up on the private investment already accelerating in storage.
“The community is expressing a wish to move to that transition faster or differently – which is how I view what’s happening with the NSW announcements – that we don’t muddy that up with what technology can already do for us and let the market make those big investments,” Mr Redman told the conference.
“Because the market is looking to do that in storage just as over the last decade the market has been rapidly ramping up its investment in renewable energy.”