AEMO Climate Heresy: Ageing Coal Plants Necessary to Keep Costs Down

Guest essay by Eric Worrall

According to the Australian Energy Market Operator, a government body charged with managing the Australian electricity grid, Coal plants are vital to contain end user electricity costs.

Coal needed for decades to keep Australian power prices down: AEMO report

AAP, Claire Bickers, News Corp Australia Network
21 minutes ago

COAL-FIRED power will be needed for decades to come to keep power prices down and the lights on as the Australian energy market transitions to renewables, the Australian Energy Market Operator says.

In a report to be released today, the AEMO says extending the life of coal-fired power stations is the most viable way of keeping energy prices down as the transition takes place.

It also predicts replacing Australia’s existing coal-fired network would cost between $8 billion and $27 billion by the mid-2030s.

AEMO’s analysis says that based on the projected cost, the cheapest option would be to “retain existing resources for as long as they can be economically relied on”.

“Over the next 20 years, approximately 30 per cent of the NEM’s (National Electricity Market’s) existing coal resources will be approaching the end of their technical lives, and will likely be retired, which highlights the importance of mitigating premature retirements as these resources currently provide essential low-cost energy and system support services required for the safe and secure operation of the power system,” it says.

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Meanwhile, a Newspoll conducted for The Australian has found voters believe the federal Coalition is best placed to keep power prices lower and maintain reliable energy supply.

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The Turnbull government is leading Labor 40 per cent to 34 per cent on the question of which party had the better approach to energy.

This represents an eight-point turn around from a similar poll conducted in May when voters backed Labor on this issue.

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