The Australian Government has announced its support for a new gas-fired power plant in Hunter Valley, New South Wales, to replace the ageing Liddell coal-fired power station. The new plant will deliver 1 GW, replacing Liddell power station after it closes in 2023.
Snowy Hydro will develop options for the new plant if the private sector doesn’t get involved. Scott Morrison, Australia’s Prime Minister, said: “Affordable, reliable, and secure electricity supply is critical to our JobMaker plan for households, businesses, and industry. We won’t risk the affordability and reliability of the NSW energy system and will step in unless the industry steps up.
“To ensure we do not have a scenario without replacement, the government is giving the private sector until the end of April 2021 to reach final investment decisions on 1 GW of dispatchable capacity, with a commitment for generation in time for summer 2023-24. If the private sector has not delivered on the target by the end of April 2021, the government will take the necessary steps to ensure the required dispatchable capacity is built.”
Morrison added that the federal government will work with the state governments through a programme worth up to $200 million to fast-track three key projects, including the Marinus Link, Project Energy Connect, and VNI West Interconnectors.