🚀Hydrogen Jobs Plan Generator Vital for SA's Energy Security
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A new study on energy reliability by the Australian Energy Market Operator highlights how important the electricity generator that is being constructed as part of the Hydrogen Jobs Plan is to South Australia's energy supply.
The Whyalla generator, owned by the State Government, needs to be connected to the grid as soon as feasible to offset the effects of early gas-fired generator closures by private operators and new cross-border delays to the interconnector being built between South Australia and New South Wales.
The state could potentially miss out on meeting national reliability requirements if the Hydrogen Jobs Plan generator wasn't there, according to the AEMO report.
Increased risk underscores the carelessness of the former Marshall Liberal government, which sold off the state-purchased gas-fired generators that provided South Australia with a backup power supply in case of emergencies and prevented blackouts.
The Marshall administration's complacency in relying on the Project EnergyConnect transmission line to link NSW's power supply is also brought to light.
The proposed connection was first mentioned in 2016. The estimated cost of construction was $500 million to $1.5 billion, with a target build date of 2021.
At a cost of $2.3 billion and a completion date of June 2023, the project's schedule and costs increased gradually until they were approved by the Australian Energy Regulator in May 2021.
The NSW portion of the connector, which runs from Robertstown to the border, has been beset by delays, the most recent of which was announced in April. The South Australian portion of the connector was completed late last year.
As per the report released today, AEMO has revised its expectations, citing delays in NSW that will only allow the 800-megawatt capacity to become available by July 2027.
Minister for Energy and Mining Tom Koutsantonis said in the privatised electricity market, operators have flirted with the edge of reliability to minimise their capital investment in new generation and maximise their profits.
"When Labor was last in Government, we fixed the problem by buying back-up generators – but the Marshall Liberal government sold them off.
Now, new risks have emerged which show that the State Government’s investment in the Hydrogen Jobs Plan is absolutely essential.
This is an independent assessment that proves the Hydrogen Jobs Plan is good for jobs, good for the environment and good for all households in this state.” He said.
There have been early closures of privately owned generators since AEMO released its annual reliability report, the 2023 Electricity Statement of Opportunities, in August of last year.
AGL has now announced that it will not be able to restart one of its four 200MW units at its Torrens Island Power Station. In the middle of 2026, the final three units are scheduled to shut.
In February, however, ENGIE declared that as of July of this year, it would shut down both its 63 MW Snuggery plant in the South-east and its 75 MW Port Lincoln facility. It has been decided to move up the full closure of both plants from 2030 to 2028.
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Today's update to AEMO's 2023 report is the result of these changes as well as other interstate developments.
South Australia could fall 35MW short of the reliability standard in 2026–2027, according to the update, which calls for meeting at least 99.998% of anticipated customer demand.
Under the more stringent interim reliability standard, which calls for 99.9994 percent to withstand a one in ten year hot summer, SA could run the risk of running 305 MW short.
In summer heatwaves, South African demand surpasses 3000MW per day, but it typically hovers around 1500MW.
When coal-fired power plants leave the system starting this summer, AEMO's top concerns are in Victoria and New South Wales (NSW), where deficiencies in the interim reliability standard are anticipated. NSW could run out of more than 1000MW as early as 2025–2026, according to the report.
However, in SA, AEMO has included the 200 MW generator for the Hydrogen Jobs Plan of the Malinauskas Government in its main scenario, which is scheduled for construction in 2025–2026 and completion by 2026–2027.
After it is fired up, SA will be in a safe place to meet the strict interim reliability standard thanks to the new Hydrogen Jobs Plan turbine, which will significantly lower risk.
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